Ambuja Cements Q2 FY27 Results: EBITDA Declines 28% to ₹1,271 Cr Amidst Rising Costs
Ambuja Cements reported Q2 FY27 consolidated EBITDA of ₹1,271 Cr, down 28% YoY, impacted by geopolitical tensions. Revenue was ₹9,197 Cr. The company is expanding capacity to 149 MTPA and targeting cost reduction. Merger with ACC and Orient Cement is expected to complete by Jan'27. ESG initiatives and strong credit ratings remain a focus.
The significant drop in profitability (EBITDA and PAT) and the increase in costs directly impact the company's financial performance and investor returns. The ongoing merger and capacity expansion plans are significant strategic developments.
The EBITDA and PAT have significantly declined year-on-year due to increased costs and geopolitical factors, despite stable revenues and efforts in capacity expansion and cost optimization.
Ambuja Cements Limited has released its investor presentation for the quarter and half-year ended September 30, 2026. The company reported a consolidated EBITDA of ₹1,271 crore for Q2 FY2027, a decrease of 28% from ₹1,762 crore in the same period last year. This decline was primarily attributed to geopolitical tensions, which accounted for approximately 77% of the decrease, alongside price impacts, volume changes, and higher maintenance costs. The company's revenue from operations for Q2 FY2027 stood at ₹9,197 crore, a marginal 0% change year-on-year.
Despite the challenging operating conditions, including geopolitical issues, monsoon disruptions, and higher energy costs, Ambuja Cements is focusing on sustainable earnings. The company's sales volume for Q2 FY2027 was 16.5 MnT, a slight decrease of 1% from 16.6 MnT in Q2 FY2026. The Net Selling Price (NSP) per bag of cement saw a 1% decrease to ₹255, and the cement cost increased by 6% to ₹4,410 per tonne. The EBITDA per tonne declined by 27% to ₹770.
Ambuja Cements is actively pursuing capacity expansion, with current cement capacity at 113.5 MTPA and plans to add 29.7 MTPA through 14 planned projects, aiming for a total capacity of 149 MTPA. The company also has a cost reduction target of ₹4,250 PMT by FY27 and ₹4,000 PMT by FY28. The merger of ACC Limited and Orient Cement Limited with Ambuja Cements is progressing, with shareholder approvals secured and NCLT approvals expected by January 2027. This amalgamation is anticipated to simplify the corporate structure and unlock operating synergies.
The company highlighted its strong ESG credentials, with Ambuja and ACC ranking highly in Sustainalytics and S&P CSA. They are also focusing on increasing their share of blended cement and premium products, with trade sales increasing by 6 percentage points year-on-year to 74%. The company aims for a premium cement sale of 40% of trade sales. Ambuja Cements maintains its highest credit ratings of AAA/A1+ from major rating agencies.
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