Ambuja Cements (500425) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly cement sales volume of 16.6 million tons, up 20% YoY, with H1 FY26 volume at 35.0 million tons, outpacing industry growth.

• Revenue rose 21% YoY to INR 9,174 crore, with premium products comprising 35% of trade sales and significant contributions from recent acquisitions.

• Profit after tax surged 364% YoY to INR 2,302 crore, aided by a one-time tax write-back and operational improvements.

• Company remains debt-free with net worth at INR 69,493 crore, maintaining strong cash flows to support capex and expansion.

• Major acquisitions included Orient and Penna Cement, with rapid integration and expanded market presence.

Financial highlights

• Quarterly EBITDA reached INR 1,761 crore, up 58% YoY, with EBITDA margin improving to 19.2% from 14.2% last year.

• EBITDA per ton increased 32% YoY to INR 1,060; H1 FY26 EBITDA per ton was INR 1,064, up 30% YoY.

• Cost per ton reduced by INR 238 YoY, with total cost at INR 4,200/ton, targeting INR 4,000 by March 2026.

• Net worth increased by INR 3,057 crore in Q2 FY26; company maintains AAA (stable) / A1+ credit ratings.

• Net cash from operating activities for H1 FY26 was INR 1,444 crore.

Outlook and guidance

• Targeting cement capacity of 155 million tons and clinker capacity of 96 million tons by FY 2028, with debottlenecking at $48/ton CapEx.

• Cost per ton expected to reduce to INR 3,650 by March 2028.

• Double-digit volume growth and four-digit EBITDA per ton expected to continue, with market share goal of 20%-22% by FY 2028.

• Green power share to reach 60% by FY 2028, reducing power cost by INR 1.5/unit.

• Ongoing legal and regulatory matters are being managed, with no material impact anticipated on operations.