Ambuja Cements (500425) Q3 25/26 earnings summary

Executive summary

• Achieved industry-leading volume growth at 2x the industry average, with consolidated cement volume of 53.8 MTPA for 9MFY'26, up 19% YoY, and revenue rising 22% to Rs 29,740 Cr; EBITDA up 62% to Rs 5,075 Cr on a normalized basis.

• Premiumization and mix improvement drove higher market share and better realizations, with premium cement volumes accounting for 35% of trade sales and 31% YoY growth in the premium segment.

• Announced and progressed amalgamation of ACC and Orient Cement, with ongoing mergers of Sanghi and Penna expected to complete by Mar'26, aiming for a unified platform to accelerate growth and efficiency.

• Major management changes include new senior appointments and the superannuation of the Managing Director effective January 31, 2026.

• Focused on value, market share, and digital transformation, including AI-enabled operations and industry partnerships.

Financial highlights

• Highest ever quarterly sales volume at 18.9 million tons, up 17% YoY; quarterly revenue reached INR 10,277 crore, up 20% YoY, with a INR 5 per bag improvement in realizations.

• PAT for Q3FY'26 was INR 378 crore, up 258% YoY (adjusted for one-off items); normalized PAT for 9MFY'26 at Rs 1,984 Cr (+42% YoY).

• Operating EBITDA for Q3FY'26 was INR 1,353 crore, up 53% YoY (excluding one-off excise drawback); EBITDA per ton at INR 718, up 31%.

• Diluted EPS for Q3FY'26 was INR 0.82 (consolidated); 9MFY'26 EPS at 11.36 (down 15% YoY due to normalization of one-time items).

• Cash and cash equivalents at Rs 1,512 Cr as of Dec'25, after major acquisitions.

Outlook and guidance

• Targeting 155 million tons capacity by March 2028, with clear pathways via debottlenecking and brownfield expansions; 115 MTPA by Mar'26.

• Cost per ton expected to decline to INR 3,800 by March 2027 and INR 3,650 by March 2028, driven by efficiency gains and green power; green power share to reach 60% by Mar'28.

• Double-digit volume and revenue growth expected to continue, with a focus on balancing volume and value through premium and blended cement.

• Industry demand growth for FY 2026 projected at 8%, with robust Q4 outlook.

• Results for the period are not fully comparable with previous periods due to the impact of major acquisitions and amalgamations.