Ambuja Cements Ltd, part of billionaire Gautam Adani-led Adani Group, announced its financial performance for the quarter ending December today, January 30, reporting a consolidated net profit of ₹367 crore, down 86% from ₹2,663 crore in the same period last year.
The sharp drop in net profit for the quarter can be attributed to a significant rise in operating expenses. Power and fuel costs, as well as freight and forwarding expenses, jumped to ₹4,970 crore from ₹4,105 crore in the same period last year.
Net profit was also impacted by a one-time charge of ₹107 crore related to the implementation of the new labour codes, its earnings’ filing showed.
Higher costs also weighed on the company’s operating performance, with EBITDA falling to ₹1,353 crore, a 21% drop from ₹1,712 crore reported in the same period last year.
The EBITDA margin contracted by 500 basis points year-on-year to 13.2%, compared with 18.2% in the corresponding quarter of last year.
On the top line, the company reported consolidated revenue from operations rising to ₹10,180 crore, up 20% year-on-year from ₹8,498 crore in Q3FY25.
In terms of volumes, the Adani Group company reported its highest-ever cement volumes of 18.9 million tons during the quarter, marking a 16.6% year-on-year increase from 16.2 million tons in the same period last year.
Mr. Vinod Bahety, Whole-Time Director & CEO of Ambuja Cements, said, “We are now working to address specific cost-related issues, particularly power costs, the share of green power, fuel efficiency, improvements in WHRS/AFR, and logistics costs. These are part of the blueprint to achieve the targeted cost of ₹3,650 per MT by March 2028.”
With the 2.4 MTPA Marwar Grinding Unit successfully operationalized, the company’s cement capacity now stands at 109 MTPA. It aims to achieve 115 MTPA by March 2026, while the Warisaliganj unit, earlier targeted for March 2026, is now expected to be operational in Q1 FY27.
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