Ambuja Cements shares rise 3% as analysts stay bullish post Q2 results

Ambuja Cements shares rose 3 per cent after it reported a 268 per cent surge in its consolidated net profit in the September quarter

Shares of Ambuja Cements rose 3 per cent on Tuesday after analysts maintained their bullish calls after the cement maker reported a beat in the earnings for the second quarter of the current financial year (Q2FY26). 

 

The company's stock rose as much as 3.07 per cent during the day to ₹582.75 per share, the biggest intraday rise since October 29 this year. The Ambuja Cements stock pared gains to trade 2.09 per cent higher at ₹577.2 apiece, compared to a 0.22 per cent advance in Nifty 50 as of 9:35 AM. 

 

Shares of the company rose for the second straight session and currently trade at 13 times the average 30-day trading volume, according to Bloomberg. The counter has risen 8.5 per cent this year, compared to a 8.7 per cent advance in the benchmark Nifty 50. Ambuja Cements has a total market capitalisation of ₹1.4 trillion. 

 

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Ambuja Cements Q2 results 

Adani Group-led Ambuja Cement reported a 268 per cent surge in its consolidated net profit to ₹1,766 crore in the second quarter, from ₹479.53 crore during the same quarter last year. 

 

On a sequential basis, profit more than doubled from ₹835.19 crore. The surge, however, was largely driven by a one-time ₹1,697 crore income tax provision reversal. Revenue from operations for the quarter stood at ₹9,129.7 crore for the quarter, up 25 per cent year-on-year (Y-o-Y), and down 10.9 per cent sequentially.

 

The company’s operating earnings before interest, taxes, depreciation, and amortisation (Ebitda) for the quarter stood at ₹1,761 crore, up 58 per cent Y-o-Y, with an Ebita margin of 19.2 per cent.   ALSO READ | RITES share rises 3% on securing deal worth ₹373 cr from NIMHANS Bengaluru

Analysts on Ambuja Cements Earnings

Motilal Oswal said Ambuja Cements beat earnings estimates, with resilient Ebitda per tonne supported by operational efficiency. The brokerage raised its Ebitda estimate by 10 per cent for FY26, and by around 3 per cent each for FY27 and FY28, following the company’s strong second-quarter performance.

 

Ambuja Cements has reported steady profitability improvements, with Ebitda per tonne rising by over Rs 1,000 for the third consecutive quarter. The performance was driven by stable realisations and a quarter-on-quarter reduction in operating costs. The integration of Orient Cement, Penna, and Sanghi brands with ACC and Ambuja Cements was also encouraging.

 

The company increased its capacity target to 155 million tonnes per annum by FY28, adding 15 million tonnes through debottlenecking across plants. Motilal Oswal said execution will be a key factor to monitor, given delays in some ongoing projects.

 

Antique Stock Broking expects Ambuja Cements to post a 13 per cent consolidated volume compound annual growth rate (CAGR) over FY25-FY28, driven by improved cost efficiencies and better realisations. The brokerage maintained its 'Buy' rating on the stock with a revised target price of ₹690, up from ₹675 earlier.  ALSO READ | Eternal vs Swiggy: Deja Vu in QC battle, but this time could be different 

JM Financial raised its Ebitda estimates for Ambuja Cements by about 2-5 per cent for FY26-FY27, factoring in the second-quarter outperformance and upcoming capacity expansion, while broadly maintaining estimates for FY28. 

 

The brokerage revised its target price to ₹700 per share, based on 17 times December 2027 estimates, and maintained its 'Buy' rating, citing Ambuja’s strong market positioning, pan-India presence, industry-leading volume growth, and net cash balance sheet. JM Financial added that it continues to prefer Ambuja over ACC, given its superior growth outlook.