Ambuja Cements Ltd. (AMBUJA) is doing very well in the first quarter of FY27 with revenue of ₹9,500 crore and a significant profit improvement on the back of cost management and operational efficiency. Operating EBITDA was ₹1,589 crore, and EBITDA margin was 16.7%, up 3.3 percentage points quarter-on-quarter.
The good quarterly performance was driven by robust sales of premium cement products, expanded trade network, improved manufacturing efficiency and continued investment in renewable energy despite geopolitical tension in West Asia.
Revenue and Profitability Improve
Ambuja Cements in the quarter ended June 30, 2026, reported revenue of ₹9,500 crore, supported by demand in the main markets.
The company's operating EBITDA was up to ₹1,589 crore, and the EBITDA margin was 16.7%, up 331 basis points quarter-on-quarter. This margin growth is due to effective cost optimisation measures and better execution.
Premium product sales are on the rise
As a result, during the quarter, Ambuja Cements continued to expand its premium product portfolio.
When it comes to premium products, the share of premium products increased by one percentage point year-on-year to 34%, indicating growing customer preference for higher-value cement offerings.
The company also improved its distribution mix in line with its marketing strategy:
Trade sales increased by 4 percentage points year-on-year to 78%, up 4 percentage points. Clinker factor improved to 63.7%, up 2.1 percentage points.
These improvements helped in better operating performance and quality of earnings.
Cost reduction despite Global Challenges
One of the biggest highlights of the quarter was the company’s success in reducing operating costs despite external pressures.
Ambuja Cements achieved a sequential cost reduction of ₹206 per metric tonne (PMT) through focused cost optimisation initiatives, improved energy efficiency, lower clinker usage and operational excellence.
The company’s savings were achieved while input costs were up due to geopolitical tensions in West Asia affecting fuel and logistics markets.
Management said it is on track to further reduce costs and achieve a target operating cost of about ₹4,250 PMT by the end of FY27, which is an additional saving of around ₹250 PMT.
Renewable Energy Capacity Expands
The company continued investing in sustainable operations during the quarter.
Renewable energy capacity increased by 75 MW. Total renewable energy capacity reached 973 MW. Green power contribution increased to 34%.
These initiatives will lower energy costs and support the company's long-term sustainability goals.
Debt-Free Balance Sheet
Ambuja Cements said it is debt-free and has the highest credit ratings, and it continues to gain financial flexibility for future development and strategic investment.
CEO highlights strong start to FY27
Cements’ whole-time director and CEO Vinod Bahety said “the company has started FY27 with strong momentum in terms of value-led growth, premiumisation and disciplined execution” in the earnings release, with strong momentum on this occasion.
He said higher trade sales and a higher share of premium products helped the company to improve its market mix and profitability. He also said that operational excellence, better energy efficiency and disciplined cost management helped the company to offset the short-term cost rise caused by geopolitical events.
Capacity Expansion Progress
Ambuja Cements is continuing its aggressive expansion strategy and remains on target to increase its total cement manufacturing capacity to 119 million tonnes per annum (MTPA) by the end of FY27.
The company will also commission several new facilities like:
- Dahej – 1.2 MTPA
- Salai Banwa – 2.4 MTPA.
- Bathinda – 1.2 MTPA.
- Jodhpur – 2.0 MTPA.
- Kalamboli – 1.0 MTPA.
- Warisaliganj – 2.4 MTPA.
These projects will strengthen Ambuja Cements’ manufacturing footprint and help to meet growing infrastructure and housing demand across India.
Outlook
Ambuja Cements has a solid start to FY27 with healthy revenues, improved operating margins, disciplined cost management and continued investment in capacity expansion. The company’s emphasis on premium products, renewable energy adoption, and operational efficiency has allowed it to address the global cost pressure and still be profitable.
With a debt-free balance sheet, ambitious expansion plans, and a target to reach 119 MTPA capacity by the end of FY27, Ambuja Cements is well positioned to benefit from India's long-term infrastructure and construction growth and, as such, one to watch in the cement sector during the rest of the year.
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