Ambuja Cements Q1 net rises to Rs 788 cr as volumes, premium mix improve

With 18.4 mt sales and successful Orient Cement integration, Ambuja beats revenue estimates and posts 53% jump in EBITDA amid lower costs and strong premium mix

Ambuja Cements, owned by the Adani Group, posted a 23.13 per cent year-on-year (YoY) rise in consolidated net profit for the first quarter of FY2026 to Rs 787.9 crore. The growth was driven by the company’s highest-ever quarterly cement sales volume of 18.4 million tonnes (mt), up 20 per cent YoY. However, the profit figure fell short of Bloomberg’s consensus estimate of Rs 920.1 crore.

 

Strong trade volumes, a higher share of premium products, and improved realisations contributed to the earnings performance. The company also completed its acquisition of Orient Cement during the quarter.

 

Revenue beats estimates; EBITDA jumps 53% YoY

 

 

Revenue from operations rose 22.6 per cent YoY to Rs 10,289.1 crore, exceeding analysts’ expectations of Rs 9,751.1 crore. This marks the company’s best quarterly revenue performance to date.

 

Earnings before interest, tax, depreciation, and amortisation (EBITDA) surged 53 per cent YoY to Rs 1,961 crore. The company achieved this alongside a reduction in key costs: raw material costs fell 12 per cent, power and fuel costs declined by 3 per cent, freight and forwarding by 3 per cent, and other expenses dropped by 2 per cent YoY. 

 

Orient Cement integration boosts operational strength

 

“The integration of Orient assets has been completed ahead of time with good results from these assets,” said Vinod Bahety, whole-time director and CEO of Ambuja Cements. “We have good visibility to sustain this performance and are well-positioned to lead the next phase of growth with a sustainable EBITDA of Rs 1,500 per metric tonne.”

 

Trade volumes rose 2.4 per cent, while the share of premium products climbed to 33 per cent—up 43 per cent YoY—supported by a solution-oriented approach, improved supply chains, and stronger brand pull across key markets.

 

Cement demand outlook remains optimistic

 

Bahety noted that cement demand grew 4 per cent YoY during Q1 FY26, compared to 2 per cent in the same quarter last year. According to Elara Capital, pan-India cement prices rose 3 per cent quarter-on-quarter to Rs 377 per bag during Q1 FY26, recovering from a 4 per cent decline in Q1 FY25. Prices softened in June due to the onset of the monsoon.

 

“For FY26, we expect cement demand to grow in the range of 7–8 per cent, backed by sturdy rural and urban demand, modest pickup in infrastructure spending, and a steady recovery in housing and real estate,” Bahety added.

 

Sequential profit dips; long-term expansion plans on track

 

Sequentially, revenue grew by 3.1 per cent, though profit declined 17.6 per cent. With a current installed capacity of 104.5 mtpa, Ambuja is India’s second-largest cement producer and aims to reach 140 mtpa by FY2028.

 

UltraTech Cement reported a 48.9 per cent YoY jump in profit and a 9.7 per cent increase in sales volume. Nuvoco Vistas Corp posted a 6 per cent rise in sales and significant profit growth on a low base. Dalmia Bharat, by contrast, saw a 5 per cent decline in volume.