Ambuja Cements (500425) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 delivered disciplined and sustainable performance amid challenging conditions, with a focus on value over volume and strategic priorities including profitable growth, cost leadership, and technology-driven sustainability.

• Revenue from operations was ₹9,500 crore, EBITDA at ₹1,589 crore, and PAT at ₹660 crore, reflecting cost pressures from geopolitical events and a strategic shift to premium and blended products.

• Cement sales volumes declined 14% sequentially and 7% YoY, with trade sales share rising to 78% and premium products at 34% of trade sales.

• Results reflect recent mergers and acquisitions, including Penna, Sanghi, and Orient, making YoY comparisons less directly comparable.

Financial highlights

• Consolidated revenue for Q1 FY27 was ₹9,474 crore, with standalone revenue at ₹6,320 crore; EBITDA margin improved to 16.7% and EBITDA per ton reached ₹931.

• PAT for Q1 FY27 was ₹660 crore; basic EPS (consolidated) was ₹1.5.

• Net operating cost per ton reduced by ₹206 sequentially to ₹4,241; power cost per unit fell from ₹5.9 to ₹4.9.

• Trade cement sales rose to 78% of total sales, and blended cement share increased to 85%.

• RMC segment EBITDA at ₹35 crore; power sales revenue at ₹140 crore and fly ash sales at ₹15 crore.

Outlook and guidance

• Cement capacity to reach 119 MTPA by year-end, with 10.2 MTPA added; green power share targeted at 60% by FY28.

• Cost guidance maintained at ₹4,250 per ton for FY27, with a further reduction to ₹4,000 targeted by FY28.

• CapEx guidance of ₹6,500 crore for FY27, with a similar run-rate for FY28.

• Management expects cement demand to remain soft at ~5% in FY27 due to macro headwinds but sees long-term growth from infrastructure and housing.

• Focus on operational efficiency, capital allocation, and modernization, with temporary suspension of some manufacturing operations for optimization.