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Ambuja Cements revenue was down by 7.7% YoY

ICICIdirect Research 29 Jul 2026 DISCLAIMER

News: Ambuja Cements revenue was down by 7.7% YoY (-13% QoQ) to Rs 9500 crore led by de-growth in sales volume of 8% YoY (-13.9% QoQ) and flattish blended realisation on YoY basis (+1.1% QoQ). Total cost/ton increased by 3.2% YoY (-2.8% QoQ), mainly due to increase in power & fuel cost and others cost which includes packaging and maintenance costs. EBITDA/ton stood at Rs 918/ton (-11.9% YoY, +26.1% QoQ). Subsequently, EBITDA was down by 19% YoY (+8.5% QoQ) to Rs 1589 crores. Reported PAT decreased by 30.9% YoY (-68.5% QoQ) to Rs 577 crores

View: Volume growth declined during the quarter as company cut sales from less profitable plants and non-trade segments. However, EBITDA/ton came little better than expectations due to value over volume strategy. Going ahead, management has reiterated on volume growth guidance of ~8% (i.e ~80 mtpa) for FY27E and focus remains on profitability over volume. Also, management guided ~Rs 250/ton reduction in total cost/ton from current levels till FY27E. With organic capacity expansion of ~10 mtpa in process, Ambuja's total consolidated capacity will be increased to 119 mtpa by FY27E (from ~109 mtpa at present). In longer term, management targets to add ~8 to 10 mtpa capacity every year with targeted utilisation levels of 70-75% on consol level, which gives longer term growth visibility

Impact: Neutral

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