Ambuja Cements Q1 Profit Falls 37% as It Targets 119 MTPA Capacity by FY27

Ambuja Cements reported Q1 net profit of ₹504 crore, down from ₹797 crore a year earlier, as cement volumes fell to 17.1 million tonnes. The Adani Group-owned company plans 10.2 MTPA of new capacity across six sites while pursuing further per-tonne cost reductions amid petcoke and freight pressure.

— Source publishedTue, 28 Jul, 2026, 16:02 IST·First seen Tue, 28 Jul, 2026, 16:05 IST·Source Outlook Business

What happened

Adani Group-owned Ambuja Cements reported a 37% YoY Q1 profit decline as lower volumes, petcoke and freight costs hurt margins. It plans new plants to reach 119

Key facts

  • Q1 net profit: ₹504 crore, down 37% YoY from ₹797 crore
  • Cement sales volume: 17.1 million tonnes, down from 18.4 million tonnes
  • Centrum volume estimate: 17.9 million tonnes
  • Shares: down 2% to ₹421.75
  • Sequential cost reduction: ₹206 per tonne
  • EBITDA margin: 16.7%, up 331 basis points QoQ
  • FY27 capacity target: 119 MTPA
  • Cost-reduction target: ₹250 per tonne
  • FY-end cost target: ₹4,250 per tonne
  • New capacity: Dahej 1.2 MTPA; Salai Banwa 2.4 MTPA; Bathinda 1.2 MTPA; Jodhpur 2 MTPA; Kalamboli 1 MTPA; Warisaliganj 2.4 MTPA

Why this matters

The six-site expansion program signals Adani-owned Ambuja’s intent to strengthen regional scale and cost positioning, creating a platform for further inorganic opportunities in cement and logistics.

What to watch

  • Quarterly cement volume growth versus the 17.1 million-tonne Q1 base and industry demand growth.
  • EBITDA per tonne, fuel cost per tonne and freight cost per tonne trends.
  • Petcoke and imported coal price movements, along with rupee depreciation effects on imported fuel.
  • Cement price realization trends in Ambuja's core western, northern and central markets.
  • Commissioning dates, capex guidance and utilization rates for the planned 10.2 MTPA additions.
  • Competitor capacity announcements and price cuts from UltraTech, ACC, Shree Cement and regional producers.
  • Government infrastructure awards, housing activity and the severity/duration of the monsoon.
  • Prioritize freight optimization through rail, coastal shipping, bulk terminals and plant-to-market network integration.
  • Push blended cement, alternative fuels and green-power procurement to reduce petcoke exposure and lower cost per tonne.
  • Sequence new capacity commissioning around high-demand regions to protect utilization rather than pursuing volume at any price.
  • Use Adani Group logistics, energy and infrastructure links to widen distribution reach and defend delivered-cost advantages.
  • Maintain selective pricing discipline while using dealer incentives and project sales to recover lost volume.