Ambuja Cements reports robust Q2 FY'26 performance, boosts capacity target

Ambuja Cements achieved a cement volume of 16.6 MnT in Q2 FY'26, marking a 20% year-on-year increase and the highest ever in a Q2 series. The company's EBITDA for the quarter stood at ₹1,060 per PMT, up 32% year-on-year, with profit after tax (PAT) soaring by 364% to ₹2,302 crore. For H1 FY'26, cement volume reached 35.0 MnT, also a 20% year-on-year rise, with EBITDA at ₹1,064 per PMT (up 30% year-on-year) and PAT at ₹3,319 crore (up 159% year-on-year). The company's net worth is reported at ₹69,493 crore, maintaining a debt-free status.

The company has upped its FY'28 target capacity by 15 MTPA, from 140 MTPA to 155 MTPA, primarily through debottlenecking at a lower capital expenditure of $48/MT. Currently, available capacity for FY'26 is 118 MTPA, with further incremental capacity expected to be completed by the end of FY'26. Strategic initiatives include the installation of 13 blenders to optimize product mix and increased share of premium cement, as well as the commissioning of 200 MW solar power, bringing total renewable energy capacity to 673 MW.

Consolidation efforts are underway with Penna Cement and Sanghi Industries, with board approvals for merger received in December 2024, and applications filed with NCLT. These mergers are expected to be completed by the end of FY'26. The company remains optimistic about delivering double-digit revenue growth and four-digit PMT EBITDA, with overall costs reduced by 5% year-on-year due to Adani Group synergies.