Competitive intensity, valuations may cap gains in Ambuja Cements

ACEM reported strong growth of 81 per cent Y-o-Y in operating profit to Rs 1,760 crore, and operating profit per tonne (t) grew 52 per cent Y-o-Y to Rs 1,042

Ambuja Cements (ACEM) reported Q2FY26 numbers that beat consensus estimates. The company has strong capacity addition lined up for FY26-FY28, apart from the ramp-up of acquired capacities. It will have the ability to sustain volume additions for next 3-4 financial years, and therefore, drive market share gains. The management is working to lower costs/ tonne. However, every cement major has capacity additions in progress and valuations may already be discounting gains to a large extent. 

ACEM reported strong growth of 81 per cent year-on-year (Y-o-Y) in operating profit at ₹1,760 crore and operating profit per tonne (t) grew 52 per