Q4 profit jumps 79 per cent to ₹1,830 cr; sees cost pressures ahead
Ambuja Cements Ltd, part of the Adani Group, on Monday reported a 78.5 per cent year-on-year jump in consolidated net profit to ₹1,830 crore for the fourth quarter of FY26, supported by strong volume growth and better realisations.
Revenue from operations rose 10 per cent year-on-year to ₹10,892 crore, driven by 8.6 per cent growth in cement sales and a sharp 37 per cent increase in the ready-mix concrete segment. The company reported its highest-ever quarterly sales volume of 19.9 million tonnes, up 10 per cent year-on-year. Operating EBITDA stood at ₹1,464 crore, with margins at 13.4 per cent, translating to EBITDA of ₹735 per tonne.
For FY26, net profit rose 10 per cent to ₹4,728 crore, while revenue grew 19 per cent to ₹40,446 crore. Annual EBITDA stood at ₹6,539 crore, with the company achieving its highest-ever annual volume of 73.7 million tonnes and EBITDA of ₹887 per tonne. “FY26 has been a year of resilience for the cement sector, which has witnessed consolidation, GST reforms, and macro headwinds including geopolitical factors and weather disruptions. Against this backdrop, Ambuja delivered a resilient performance with highest-ever annual volumes and improved realisations,” said Vinod Bahety, Whole-time Director and Chief Executive Officer of Ambuja Cements Ltd.
He added that growth was driven by a higher share of trade and premium products, better utilisation of assets, and progress on the company’s “one cement platform” strategy following the integration of Sanghi and Penna Cement.
The company said FY26 marked a transition from expansion to consolidation, with a successful amalgamation of Sanghi and Penna Cement into its operations. Ambuja also remained debt-free, supported by strong liquidity and high credit ratings. However, it flagged persistent cost pressures from fuel, diesel, packaging material shortages and rupee depreciation, which are expected to continue into H1FY27. The company is addressing these through fuel mix optimisation, higher renewable energy adoption, logistics efficiency improvements, and disciplined production planning.
On the outlook, Ambuja expects cement demand growth of around 5 per cent in FY27, citing geopolitical uncertainties and expectations of a below-normal monsoon, though it maintains a positive long-term view on India’s infrastructure-led demand cycle. The company also highlighted its expansion pipeline, with multiple grinding and clinker projects scheduled for commissioning in H1FY27, taking total capacity to around 119 MTPA. The board has recommended a dividend of ₹2 per equity share for FY26.