Ambuja Cements Limited

Ambuja Cements reported its highest ever quarterly sales volume of 18.9 million tons in Q3 FY26, marking a 17% year-on-year growth and improving its market share to 16.6%. Normalized revenue for the quarter stood at INR10,277 crores, a 20% increase YoY, driven by a realization improvement of INR5 per bag. Operating EBITDA grew by 53% YoY to INR1,353 crores, translating to an EBITDA per ton of INR718, up 31% YoY. The company's adjusted PAT (excluding one-off^📎 items) saw a significant jump of 258% YoY to INR378 crores.

The company's total capacity reached 109 MTPA with the commissioning of a 2.4 MT Marwar Grinding Unit ahead of schedule. Despite a 3-month delay for Warisaliganj (now Q1 FY27), Ambuja Cements aims to exit March '26 with 115 MTPA (net of mothballing two old units). The long-term target is to achieve 155 MTPA by March '28, supported by an additional 15 MT of debottlenecking capacity at lower capex. The proposed amalgamation of ACC and Orient Cement is expected to accelerate growth, expand EBITDA, and enhance capital efficiency, forming a unified 'One Cement Platform'.

While the average cost per ton for Q3 FY26 was INR4,500, the company achieved a December exit cost below INR4,000, indicating significant cost control. Key drivers included a 6% decline in kiln fuel cost, a 15% reduction in power cost, and a 1% decrease in logistics costs. The renewable energy footprint expanded to 900 megawatts, with a target of 1,122 MW by FY27, providing insulation against energy price volatility. Management expects further cost reductions, targeting INR3,800 per ton by March '27 and INR3,650 per ton by March '28, through initiatives like power consumption reduction (10-12 units/ton) and improved fuel mix.

Premium cement volumes increased by 31% YoY, accounting for 35% of trade sales, among the highest in the industry. Products like Ambuja Kawach and ACC Gold continue to be strong performers. The company's focus on premiumization and mix improvement contributed to higher market share and better realizations. The trade/non-trade sales mix is shifting towards 70%-30%, from 65%-35% in Q3, further reinforcing its leadership position and realization strategy.

Digital intelligence remains central to operations, with the launch of CiNOC (Cement Intelligent Network Operations Center), an AI-enabled central control system. This initiative aims to bring substantial efficiency and productivity through analytics. The company also expanded engagement across industry platforms like CREDAI, BAI, and NAREDCO, fostering direct interfaces with over 38,000 key stakeholders. Technical services, including ACT (Adani Certified Technology) sites, are growing, with 36,000 ACT sites and 70,000+ contractors/influencers engaged.

Ambuja Cements maintains a debt-free status with CRISIL and CARE AAA stable and A1+ ratings, reflecting a strong financial position. The net worth stands at INR69,854 crores. For the first nine months of FY26, the company's capex for growth and efficiency was approximately INR8,000 crores, with a full-year ballpark plan of INR9,000-10,000 crores. This capital is primarily directed towards capacity expansion, debottlenecking, and efficiency improvements, ensuring sustained growth and operational excellence.

Management expressed a positive outlook for the cement industry, expecting an 8% demand growth for FY26, aligning with 1.1x GDP growth. The exit trend of December was robust, with demand strengthening into January, leading to price improvements. The company anticipates continued double-digit volume growth and expects the overall revenue to improve in the coming quarters^⏳, leading to a healthy finish for the year. The focus on blended cement and infrastructure-driven demand is expected to be key growth drivers.