Ambuja Cements Q2 Results: Net profit skyrockets 268%; revenue rises to ₹9,130 crore YoY

Ambuja Cements, in its regulatory filing, stated that the PAT for the September quarter includes an income tax provision reversal of ₹1,697 crore following favourable High Court rulings.

Its revenue from operations for the quarter ended September 30, 2025, increased 25% to ₹9,130 crore as against ₹7,305 crore in the year-ago period.

Ambuja Cement reported a 3% year-on-year (YoY) improvement in realisations. The company’s market share rose by 1% to 16.6%, while premium cement continued to account for 35% of trade sales, registering an impressive 28% YoY volume growth in this segment.

The firm also achieved its highest-ever quarterly cement sales volume for a Q2 series at 16.6 million tonnes, marking a 20% YoY increase. Correspondingly, quarterly revenue reached an all-time high of ₹9,174 crore in the Q2 series, up 21% from the previous year.

Ambuja Cements also reported stable operational performance in Q2 as its operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), surged 98.5% to ₹1,716 crore from ₹864 crore in the same period of the previous fiscal year.

Its operating profit margin, also known as EBITDA margin, improved to 18.79% from 11.82% in the corresponding period last year.

“A comprehensive focus on market share gains and R&D-led premium cement offerings has enabled differentiated performance both in volume growth and improved realisations,” Ambuja Cement said in a statement.

The company’s earnings per share (EPS) were at ₹7.2 for the quarter, up 267% YoY with a net worth of ₹69,493 crore, as Ambuja Cement continues to remain debt-free.

Capacity target

Ambuja Cement has raised its FY28 capacity target by 15 MTPA to 155 MTPA from the earlier goal of 140 MTPA. The additional capacity will be achieved through debottlenecking at a relatively low capex of $48 per MT. The company said it is installing 13 blenders across its plants over the next 12 months to optimise its product mix, enhance the share of premium cement, and improve realisations.

Additionally, debottlenecking of plant logistics infrastructure is expected to increase the utilisation of the existing 107 MTPA capacity by 3% over the next 24 months.

“Our FY26 end target of total cost ~ ₹4,000 PMT will set the pace for a further 5% reduction each year over the next two years, putting us on track to achieve ₹3,650 PMT by the end of FY 28,” the company said in the statement.

Operationally, Ambuja has commenced trial runs for a new 4 MTPA kiln line at Bhatapara (Chhattisgarh). The 2 MTPA Krishnapatnam grinding unit (GU) has been operationalised, and an additional 7 MTPA capacity across three more locations is expected to go live in Q3.

On the renewable energy front, the cement firm commissioned 200 MW of solar power, taking its total renewable energy capacity to 673 MW, which is projected to rise to 900 MW by the end of this year and 1,122 MW by FY27, it said.

Here's what management said

“This quarter has been noteworthy for the cement industry. Despite the headwinds from prolonged monsoons, the sector will benefit from the tailwinds of several favourable developments, including GST 2.0 reforms, the Carbon Credit Trading Scheme (CCTS), and the withdrawal of coal cess. Our capacity expansion is well timed to capitalise on this positive momentum,” said Vinod Bahety, Whole Time Director & CEO, Ambuja Cements.

“We remain optimistic about delivering double-digit revenue growth and four-digit PMT EBITDA. By the end of FY26, we target to deliver a total cost of ₹4,000 PMT and a further 5% reduction YoY for the next two years, helping us to achieve the cost target of ₹3,650 PMT by FY28,” Bahety added.

Bahety said that the company’s Cement Intelligent Network Operations Centre (CiNOC) is set to bring a paradigm shift across business operations, with artificial intelligence deeply integrated into the enterprise to enhance efficiency, productivity, and stakeholder engagement across the value chain.

Following the earnings, shares of Ambuja Cement were trading at ₹577.75 apiece on NSE, rising 2.18%.