Ambuja Cements Q1 results: Adani Group cement company Ambuja Cements on Tuesday, 28 July, reported a 36.6% year-on-year (YoY) drop in its consolidated profit to ₹660 crore for the June quarter of the current financial year (Q1FY27). In the same quarter last year, the company’s profit was ₹1041 crore.
Revenue from operations for the quarter under review dropped 7.7% YoY to ₹9,500 crore against ₹10,289 crore in Q1FY26.
Cement sales volume declined to 17.1 million tonnes in Q1FY27 compared to 18.4 million tonnes YoY.
Operating EBITDA declined 19% YoY to ₹1,589 crore in Q1FY27, while EBITDA margin shrank to 16.7% from 19.1% YoY.
EBITDA per metric tonne (PMT) for the quarter stood at ₹931 in Q1FY27 compared to ₹1,069 YoY and ₹735 QoQ.
Ambuja Cements said its balance sheet is debt‑free with a net worth of ₹71,954 crore and cash and cash equivalents of ₹844 crore.
“We have started FY’27 with strong momentum, driven by our focus on value-led growth, premiumisation and disciplined execution. Higher trade sales and an increased share of premium products strengthened our market mix, resulting in improved profitability and quality of earnings,” said Vinod Bahety, Whole Time Director and CEO, Ambuja Cements.
“Despite temporary cost headwinds arising from the West Asia geopolitical tensions, we delivered a sequential cost reduction of ₹206 PMT through operational excellence, improved energy efficiency, a lower clinker factor and disciplined cost management. This resulted in a 331 bps QoQ expansion in EBITDA margin to 16.7%,” said Bahety.
“We are confident in continuing our momentum and improving our cost structure further. We are well on track to increase our capacity to 119 MTPA by the end of FY’27, with the commissioning of Dahej (1.2 MTPA), Salai Banwa (2.4 MTPA), Bathinda (1.2 MTPA), Jodhpur (2 MTPA), Kalamboli (1 MTPA) and Warisaliganj (2.4 MTPA). We are firmly on course to deliver cost reduction of approximately ₹250 PMT to achieve the targeted cost of ₹4,250 PMT by the end of FY27,” said Bahety.
Impact of the West Asia conflict on the cement industry
Ambuja Cements highlighted the cost pressures faced by the Indian cement sector during Q1FY27 due to higher imported fuel prices, along with elevated freight and logistics costs resulting from geopolitical developments in West Asia.
“Given the 60–90 day fuel inventory cycle, the impact of peak fuel cost inflation is expected to coincide with the seasonally weaker Q2, potentially impacting industry profitability in the near term,” said the company.
“The company continues to mitigate these pressures through fuel mix optimisation, greater renewable energy adoption, logistics efficiencies, a focus on higher-margin markets and disciplined cost management,” it added.
Industry outlook
As per the company, cement demand is expected to remain soft at nearly 5% for FY27 in India. Near-term cement demand may be impacted by seasonal monsoon softness, geopolitical uncertainties, and input cost volatility.
However, the company believes the sector’s long-term outlook remains constructive, supported by sustained infrastructure investments, urbanisation, and housing demand.
“Ambuja Cements remains well-positioned to outperform industry growth. The company will continue to leverage its strong brand portfolio, expanding ready-mix concrete footprint, premiumisation strategy, operational excellence and cost leadership initiatives,” it said.
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