Sanghi Industrie

Ambuja Cements delivered a robust Q1 FY26, achieving its highest-ever sales volume of 18.4 million tonnes, marking a 20% year-on-year growth. Revenue surged by 23% YoY to ₹10,289 crores, surpassing the ₹10,000 crore mark. The company's market share increased by 2% to 15.5%. Profitability also saw significant improvement, with EBITDA reaching a record ₹1,961 crores, and EBITDA per metric tonne rising 28% YoY to ₹1,069, resulting in an EBITDA margin of 19.1%, up 3.8%. Net profit for the quarter stood at ₹970 crores, a 24% YoY increase, with EPS at ₹3.20, up 22% YoY. The company also improved its cost by ₹119 per metric tonne YoY.

The company is aggressively pursuing its capacity expansion goals, having commissioned 5 million tonnes of grinding capacity in the last three months and targeting an additional 13 million tonnes this financial year. This brings the total cement capacity to 104.5 million tonnes, with a clear roadmap to reach 118 million tonnes by the end of FY26 and 140 million tonnes by FY28. Key brownfield expansions are underway at sites including Bhattapada, Salai Banwa, Dahej, and Jodhpur. Management confirmed that the ₹10,000 crore capex plan for FY26, which includes Penna, is on track, with ₹2,000 crores already spent in the June quarter.

Ambuja Cements continues its focus on cost leadership, targeting a total cost reduction of ₹530 per tonne. Significant progress has been made, with approximately 35-40% of this target already achieved, primarily through green power adoption, fuel cost optimization, and logistics improvements. The green power share increased by 9.7% to 28.1% and is targeted to reach 60% by FY28, aiming to reduce power cost from ₹5.9 to ₹4.5 per unit. The company also expects to improve power consumption by at least 5 units and heat consumption by 35-40 kilocalories per kg of clinker. Primary lead distance has been reduced by 8 km to 269 km and is expected to further decrease by 50 km by FY28, contributing to a ₹150 per metric tonne reduction in logistics costs.

The integration of acquired assets, including Orient Cement (acquired in April 2025), Sanghi, and Penna, is progressing seamlessly and contributing positively to volumes and market share. Management noted that the acquired assets, especially Orient, led to some sequential cost disruptions in Q1 FY26 but are expected to stabilize. The company has successfully migrated brands like Orient to Ambuja and ACC platforms, with positive dealer reception. Penna's clinker capacity in North is expected to come on board by the end of September, further enhancing regional supply.

Sustainability remains a core strategic operating system for Ambuja Cements, which is India's only and globally the fourth large-scale cement company with science-based net-zero targets validated by SBTI. The company achieved 12 times water positivity and 11 times plastic negativity. It has commissioned 473 megawatts of renewable energy out of a 1000-megawatt target, achieving almost 28%, with a goal to reach 60% by FY28. These initiatives underscore the company's commitment to environmental goals and contribute to cost efficiencies.

The cement industry demand grew by almost 4% year-on-year in Q1 FY26, driven by government infrastructure projects like Pradhan Mantri Awas Yojana and Sadak Yojana. Ambuja Cements remains bullish on the financial year, revising its demand growth estimate upwards by 1% from 6-7% to 7-8%. Management expressed confidence in maintaining strong realizations due to its brand equity, premium product offerings, and disciplined pricing strategy across its channel network.