Ambuja Cements (500425) investor relations material

Executive summary

• Q2 consolidated cement volume was 16.5 MT, down 1% YoY; trade share reached 74% and premium products were 37% of trade sales.

• Capacity stood at 113.5 MTPA after 4.6 MTPA began commercial production; 14 projects target 29.7 MTPA of cement and 10.3 MTPA of clinker capacity.

Financial highlights

• Q2 revenue from operations was ₹9,197 crore and EBITDA ₹1,271 crore, down 28% YoY; margin was 13.8% versus 19.2%.

• Q2 consolidated revenue was ₹9,166 crore, nearly flat YoY; reported PAT was ₹236 crore versus ₹2,336 crore, with prior-year tax credits and acquisitions affecting comparisons.

• EBITDA was ₹770/ton; excluding estimated geopolitical impacts, EBITDA was ₹998/ton and margin 17.9%.

• H1 revenue was ₹18,697 crore and EBITDA ₹2,860 crore; H1 PAT was ₹896 crore, with comparisons affected by prior-period tax adjustments and acquisitions.

• Q2 total income was ₹9,255 crore; PBT before exceptional items and tax was ₹383 crore, with reported PBT of ₹298 crore after ₹85 crore exceptional expense.

Outlook and guidance

• H2 FY27 volumes are expected to grow ahead of industry; FY27 demand growth is projected at 6–7%, with near-term demand expected to remain soft.

• Cost targets are ₹4,250/ton in FY27 and ₹4,000/ton in FY28; Q2 cost was ₹4,410/ton, including an estimated ₹228/ton geopolitical impact.

• Capacity target is 149 MTPA, with debottlenecking potential to 155 MTPA; H2 additions include 3.2 MTPA ramping up and 2.4 MTPA expected to be commissioned.

• Premium cement share target is 40% of trade sales, compared with 37% in Q2.

• Proposed purchase of a 26% or greater stake in SWE Renewables is intended to enable captive wind power and optimize power costs; share purchases are expected within 15 months, subject to extensions.