Orient Cement posts strong Q2 FY26 profit, revenue driven by Adani synergies

Orient Cement Limited reported a profit after tax of ₹4,908.89 lacs for the quarter ended September 30, 2025, with revenue from operations at ₹64,332.34 lacs. This marks a substantial increase compared to the previous year, driven by strategic synergies with Ambuja/ACC. The company achieved a cement capacity utilization of 65% in Q2 FY26, up from 50% in Q2 FY25, and aims for 75-80% utilization for the remainder of the year.

The company's EBITDA for the quarter stood at ₹165 cr, a 274% increase year-on-year, with PMT EBITDA at ₹1,177/ton. This improvement is attributed to 97% of Q2 sales being under Ambuja/ACC brands through an MSA arrangement, where freight costs are borne by the buyer, significantly reducing freight expenses. Despite a rise in material consumed due to inter-company clinker transactions, the cost on a like-for-like basis decreased by 2%.

Depreciation and amortization expenses increased from ₹37 cr to ₹101 cr due to a reassessment of asset useful life and depreciation methods, aligning with parent company policies. Trade receivables increased by ₹311 cr, mainly due to running bills for cement supply to the parent company and its subsidiaries, expected to be settled in Q3 FY26.