Sanghi Industrie

Adani Cement achieved a significant milestone by crossing 100 million tons of cement capacity in just 30 months, becoming the ninth largest cement company globally. For FY25, the company reported its highest ever annual revenue of INR 35,045 crores. Q4 FY25 saw a consolidated revenue of INR 9,889 crores, marking an 11% year-on-year growth, driven by strong micro-market management and network expansion. The consolidated EBITDA for FY25 stood at INR 5,971 crores, translating to an EBITDA per ton of INR 915, with Q4 FY25 EBITDA per ton reaching INR 1,001.

The company demonstrated strong progress in cost reduction, with operational costs for Q4 FY25 at INR 4,104 per ton. Kiln fuel cost saw a significant 14% reduction, dropping to INR 1.58 per 1,000 kilo calories from INR 1.84. Logistics costs also declined by 2% to INR 1,238 per ton, attributed to footprint optimization and a closer-to-market strategy. These efforts are part of a broader plan to achieve a cost of INR 3,650 per ton by FY28, with INR 150-175 per ton savings already realized and an additional INR 300-325 per ton expected by FY28.

Adani Cement is on track to expand its capacity to 118 million tons by FY26 and 140 million tons by FY28, primarily through organic growth. Key projects include the commissioning of grinding units at Sankrail and Sindri in Q1 FY26. The 4 MTPA clinker unit at Bhatapara, Chhattisgarh, is 87% complete, with erection work nearly finished. Other projects like the 4 MTPA clinker line at Maratha (76% equipment ordered, 44% civil work) and 3 MTPA clinker line at Jodhpur (95% civil work) are progressing well, with commissioning expected by Q4 FY26 and Q3 FY26 respectively.

Recent acquisitions of Sanghi, Penna, and Orient Cement have significantly contributed to growth. The integration of these assets is progressing well, unlocking synergies in operations, logistics, and procurement. While Sanghi's utilization was under 60% in Q4 FY25 due to maintenance, both kilns are now operational, and it is expected to become a key asset for cost efficiency. Penna's clinker utilization was strong at 75-80%, though cement utilization was lower (45-50%) due to sluggish South markets. The company also made strategic investments in ACC, totaling INR 4,500 crores, for land acquisition for grinding units and coal mines, and BCFC wagons.

The company is embracing Industry 4.0 technologies, including predictive analytics, AI, and ML, to enhance operational efficiency and customer experience. Significant progress has been made on ESG initiatives, with ACC becoming India's first large-scale cement company with science-based net-zero targets. In Q4 FY25, 99 megawatts of wind power were commissioned, contributing to the target of 30% WHRS capacity at 140 million tons and the commissioning of a full gigawatt of renewable energy by Q2 FY26.

Management remains positive on the cement industry outlook, with Q4 FY25 cement consumption growing 6.5-7%. They anticipate 8% overall demand growth for FY26, supported by increased construction activities, rural demand, and government spending. The company projects industry supply to grow at a 6% CAGR, while demand is expected to grow at 7-7.5% CAGR, leading to demand outpacing supply and a favorable environment for pricing and capacity utilization. The share of premium products increased to 29.1% in Q4 FY25, with a target of 35% for FY26.

The company maintains a strong financial position, with net worth climbing to INR 64,000 crores from INR 50,000 crores a year ago, and remains debt-free with the highest credit rating. Consolidated cash and cash equivalents stood at INR 10,125 crores as of March 31, 2025. After the Orient acquisition, the company holds approximately INR 5,000 crores in cash. The planned FY26 capex of around INR 9,000 crores (INR 6,000 crores for growth and INR 2,500-3,000 crores for efficiency) will be entirely self-funded, ensuring continued financial prudence.