Cement & Cement Products company Ambuja Cements announced Q2FY26 results Q2FY26 Financial Highlights: Quarterly revenue at Rs 9,174 crore highest ever in Q2 series, up 21% YoY, volume growth ~5x industry average. Q2 PMT EBITDA @ Rs 1,060 PMT, up 32% YoY, Rs 1,761 crore, up 58% YoY, Margin @ 19.2%, up 4.5 pp YoY. EPS at Rs 7.2 for the quarter, up by 267% (an increase of Rs 5.2) YoY. Net worth at Rs 69,493 crore, up by Rs 3,057 crore. during the quarter, continue to remain debt free, highest rating of croreisil AAA (Stable) / croreisil A1+. Business Highlights: FY28 target capacity upped by 15 MTPA from earlier 140 MTPA to now 155 MTPA. This incremental 15 MTPA capacity will be achieved by debottlenecking at a much lower capex of USD 48/ MT. We are also installing 13 blenders at our plants over a period of 12 months which will optimize product mix and increase share of premium cement, thereby improving realisation. In addition, Plant logistics infrastructure debottlenecking will help existing capacity (107 MTPA) utilisation up by 3% over 24 months. Trial run has started for a 4 MTPA new kiln line at Bhatapara (Chhattisgarh). 2 MTPA Krishnapatnam GU operationalised, additional 7 MTPA will be operational at other 3 locations in Q3. Commissioned 200 MW solar power taking RE capacity to 673 MW, expected to reach 900 MW by the end of this year, and 1,122 MW by FY27. Vinod Bahety, Whole Time Director & CEO, Ambuja Cements, said: “This quarter has been noteworthy for the cement industry. Despite the headwinds from prolonged monsoons, the sector will benefit from the tailwinds of several favourable developments including GST 2.0 reforms, the Carbon croreedit Trading Scheme (CCTS), and the withdrawal of coal cess. Our capacity expansion is well timed to capitalize on this positive momentum. We have upped our FY28 target capacity by 15 MTPA from earlier 140 MTPA to now 155 MTPA. This increase of 15 MTPA from debottlenecking initiatives will come at a much lower capex of USD 48/MT. In addition, debottlenecking of plant logistics infrastructure will help in improving existing capacity (107 MTPA) utilization by 3%. We are also installing 13 blenders at our plants over a period of 12 months which will optimize mix and increase share of premium cement, in turn improving realization. The leadership journey has resulted in a 5% lower cost of sales YoY, and enabled our existing assets to deliver a PMT EBITDA of ~Rs 1,189 PMT, and an overall EBITDA of Rs 1,060 PMT. Our outlook for the balance period of FY26 remains positive. We remain optimistic about delivering double digit revenue growth and four digits PMT EBITDA. Exit of FY26 we target to deliver total cost of Rs 4,000 PMT, and further 5% reduction YoY for the next two years, helping us to achieve the cost target of Rs 3,650 PMT by FY28. Our Cement Intelligent Network Operations Centre (CiNOC) will enable a paradigm shift across business operations. AI will run deep into our enterprise fabric, bringing efficiency, productivity and deeper engagement with stakeholders across the value chain.” Result PDF
Conference Call with Schaeffler India Management and Analysts on Q3CY25 Performance and Outlook. Listen to the full earnings transcript.