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31-Jul-2025      16:00

Ambuja Cements slips after Q1 PAT slides 18% QoQ to Rs 788 crore

On a year-on-year (YoY) basis, the company reported a 23.13% increase in consolidated net profit to Rs 787.88 crore, on a 23.54% rise in revenue from operations to Rs 10,244.11 crore in Q1 FY26 over Q1 FY25.

The company reported profit before exceptional items and tax of Rs 1,292.63 crore in Q1 FY26, compared to Rs 1,094.06 crore recorded in the same period a year ago. The firm reported exceptional items of Rs 40 crore during the quarter.

Ambuja Cements' sales volume stood at 18.4 million tons in Q1 FY26, registering a growth of 20.26% on a YoY basis.

In Q1 FY26, operating EBITDA rose 53.2% year-on-year to Rs 1,961 crore, while the EBITDA margin improved to 19.1%, compared to 15.3% in Q1 FY25. EBITDA per metric tonne (PMT) stood at Rs 1,069 in June 2025.

The company's net worth stood at Rs 66,436 crore. It remains debt-free and continues to maintain its Crisil AAA (stable) and Crisil A1+ ratings.

On the outlook front, Ambuja Cements said, 'Cement demand during Q1 FY'26 registered 4% growth, compared to the marginal 2% growth during the same period in FY'25. Growth was largely driven by the government's ongoing flagship programs'PMAY, PMSY, Bharatmala, Sagarmala, and other cement-intensive projects.

The cement sector's growth outlook for Q2 FY'26 continues to remain positive. For FY'26, we expect cement demand to grow in the range of 7% - 8%, backed by sturdy rural and urban demand, a modest pickup in infrastructure spending, and a steady recovery in housing & real estate. Ambuja Cements is well-positioned to capitalize on this growth with its expanding capacity, cost leadership, and sustainability focus.

Vinod Bahety, whole-time director & CEO of Ambuja Cements, said, 'Our Q1 results are more than numbers'they reflect a vibrant mood, a transformation narrative rooted in speed, scale, and sustainability. We are delivering with a focus on value, business optimizers, solution-focused premium products, a rejuvenated supply chain, and superior brand pull across key markets aided by value unlocking from acquired assets. As we march towards 140 MTPA ecosystems by FY'28, we remain focused on reimagining cement as a solutions-driven, customer-centric business.'

Ambuja Cements is a major cement-producing company in India. The principal activity of the company is to manufacture and market cement and clinker for both domestic and export markets.

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