Ambuja Cements Ltd. share price target

Volumes up 10% YoY to ~13.2mt, realization down ~4% reflecting pricing pressure despite improved premium mix (~36%)

Company's consolidated cement capacity stands at ~109 mtpa at present (including Sanghi Industries, Penna Cement & Orient Cement) Q4FY26 performance: Revenue was up 10.4% YoY (+6.2% QoQ) to Rs 10915.5 crore led by 7.5% YoY (+5.8% QoQ) growth in sales volume (20.1 mtpa) and improvement in blended realisation by 2.7% YoY (flattish QoQ). Total cost/ton increased by 9.6% YoY (flattish QoQ), mainly due to increase in power & fuel, freight and higher others cost. EBITDA/ton stood at Rs 728/ton (-27.1% YoY, +2.3% QoQ). Subsequently, EBITDA was down by 21.6% YoY (+8.2% QoQ) to Rs 1463.9 crores....

We maintain our BUY rating on the stock.

Q4FY26 was a disappointing quarter for Ambuja Cements (ACEM), with EBITDA slipping 22% YoY owing to lower-thanexpected organic volume growth (flat YoY; although, reported volumes rose ~10%) and high operating cost.

Prioritising sweating off existing assets over new additions; capex cut from INR100bn to ~INR65bn for FY27/28 each. Recalibration at existing IUs to reduce lead distance; planning ~INR250/t cost savings each in FY27/28. Ambuja Cement (ACEM) delivered a weak cons Q4 operating performance, impacted by a) lower ramp up & higher repairs at acquired assets, b) softer volume growth of 7% YoY and c) elevated costs on branding, fuel and freight. Cement NSR increased marginally despite price hikes in regions and higher premium cement share of ~36%....

Two new proposed kilns expansion will be taken up once utilization reaches ~85%. Mgmt is targeting ~15% RoI prior to any further capacity expansion. We visited Ambuja Cement's Sanghipuram plant in Kutch (Gujarat), one of the largest integrated cement facilities with cement/clinker capacity of ~6.1mtpa/6.6mtpa (two kilns of 9,000tpd and 10,000tpd) and benefits from ~1Bt of high-quality limestone reserves. Management indicated that current operational cement capacity of ~17,000tpd could increase by ~2,500tpd through debottlenecking, taking capacity to...

We maintain our BUY rating on the stock.

We cut our EBITDA estimates by 3-5% for FY26E/27E/28E, factoring in higher costs absorbed in Q3FY26. We expect revenue & EBITDA CAGR at ~14% & ~25% respectively over FY25-28E. We also downgrade our rating to HOLD with a revised target price of Rs 570 (based on 15x EV/EBITDA on...

Ambuja Cements’ (ACEM) 3QFY26 operating performance was below our estimates, impacted by elevated opex/t, including one-off costs. Its consol. EBITDA was up ~53% YoY to INR13.5b (~24% miss).

The merger ratio was favorable for OCL (to the tune of ~9%) and largely neutral for ACC (considering the closing price of 22nd Dec 2025). However, we believe that these implied valuations for OCL and ACC are significantly...

We maintain our BUY rating on the stock, with a target price of Rs 630/share.

The Adani group has announced the simplification of its group structure and decided to consolidate the cement business under one entity. Currently, ACEM holds a 50.05% stake in ACC and 72.66% in Orient Cement.

Ambuja Cements displayed strong financial results in Q2, supported by robust volume traction, sustained cost leadership and steady improvement across its acquired assets, despite the seasonal impact of prolonged monsoons. The macro environment remains healthy, backed by higher investment in both public and private sectors, the favourable impact of GST reforms and the strengthening economic sentiment. Expansion momentum remains intact, with debottlenecking initiatives and upcoming capacities set to improve the company's operating leverage. A combination of operational momentum and strategic expansions...

We maintain our BUY rating on the stock.

With healthy volume growth and significant improvement in EBITDA/ton over FY25-28E, we expect revenue & EBITDA CAGR at ~13% & ~30% respectively over the same period. We maintain BUY on Ambuja Cements with a target price of Rs 700 (based on 17x EV/EBITDA on FY27E & FY28E...

Ambuja Cements' standalone Q2FY26 results reflected strong operational momentum with revenue of Rs53bn, rising 20% YoY and 4% sequentially, supported by robust demand, improved realizations, and higher premium product contribution. Cement sales volumes stood at 8.8mn tonnes, growing 19% YoY and 3% QoQ. Operating EBITDA increased to Rs10bn, up 32% from Rs7.8bn a year ago and 6% from Rs9.7bn in the previous quarter, driven by lower fuel and power costs, and improved efficiency. EBITDA/t stood at Rs1,167 compared to Rs1,010 in Q1FY26 and Rs988 in Q2FY25. PAT rose sharply to...