Ambuja Cements Boosts Capacity Amidst Rising Costs

Ambuja Cements reported robust sales volumes of 16.5 million tonnes in the second quarter of fiscal year 2027. Revenue from operations reached Rs 9,197 crore, with operating Ebitda at Rs 1,271 crore, reflecting an Ebitda margin of 13.8%. The company saw a significant 8.6% year-on-year increase in trade volumes, which now constitute 74% of its sales mix.

Strategic capacity expansion continues, with 4.6 MTPA commissioned during the September quarter across Dahej, Salai Banwa, and Kalamboli. An additional 5.6 MTPA is either being ramped up or is slated for commissioning in the second half of FY27, including projects in Bathinda and Jodhpur Penna. The company also expects to commission 2.4 MTPA at Warisaliganj in the latter half of FY27.

Despite industry-wide pressures from elevated fuel and logistics costs, including higher petcoke, coal, and diesel prices, Ambuja Cements maintained profitability through disciplined execution and cost management. The company's total cost per tonne was Rs 4,410, or Rs 4,182 excluding geopolitical impacts.

Further strengthening its market position, Ambuja's shareholders approved the proposed amalgamation of ACC and Orient Cement. This move is a key step in the group's One Cement Platform strategy, aiming to consolidate cement businesses and enhance operational efficiencies. The company maintained a strong financial standing with a net worth of Rs 72,238 crore and a debt-free balance sheet.