Ambuja Cements Delivers Strong Start To FY26 With Record Sales, Revenue, And EBITDA Growth

Greater Noida(Infrastructure Desk):Ambuja Cements, the 9^th largest building materials solutions company globally and part of the diversified Adani Portfolio, announced robust financial results for the quarter ended 30^th June 2025.  The Company has begun this fiscal year with a high note, supported by value focus, volume growth, channel engagement, cost efficiencies and well integration of the acquired assets. By blending business reimagination, future-ready technologies, ESG focus and deep community engagements, Ambuja Cements is redefining scale and impact in the cement industry.

Mr. Vinod Bahety, Whole Time Director & CEO, Ambuja Cements, said: “Our Q1 results are more than numbers – they reflect a vibrant mood, a transformation narrative rooted in speed, scale and sustainability.  We are delivering with focus on value, business optimiser, solution focussed premium products, rejuvenated supply chain and superior brand pull across key markets aided by value unlocking from acquired assets.  As we march towards 140 MTPA ecosystem by FY’28, we remain focused on reimagining cement as a solutions-driven customer-centric business.  It’s pertinent to highlight some of our new business drives like NirmAAAnotsav (in partnership with CREDAI), Gruhalaxmi, Dhanvarsha, Super Sunday programme and others have been very well received across the business stakeholders.  Further, integration of Orient assets has been completed ahead of time with good results from these assets.  We have a good visibility to sustain this performance and well-positioned to lead the next phase of growth with a sustainable EBITDA of Rs. 1,500 PMT.”

Operational Highlights:

• Ambuja Cements was the lead cement supplier for the world’s highest single-arch, Chenab railway bridge, a testament of superior product quality and brand trust.
• Ambuja Cements through its purpose-built partnership with CREDAI, is powering the nation building goals through integrated, smart, sustainable, high-performance, and future-ready solutions in housing, construction and infrastructure.
• Reliability of key manufacturing assets improved significantly, leading to better plant availability, reduced downtime, and higher operational efficiency and capacity utilisation with higher EBITDA per tonne.
• The Company’s acquired assets are now contributing meaningfully in terms of capacity utilisation, and EBITDA generation, reaffirming the strategic inorganic expansion. wider footprint, expanded market presence, driving down costs along with increased volume share.
• Ongoing Capex and Opex efficiency initiatives continue to yield strong operational results, positioning the Company for sustained profitability and competitive advantage.
• Ambuja Cements is getting younger with new assets, digitally smart platform and latest cohort of future young leaders, fuelling a culture of continuous innovation and excellence.

Revenue:

The strong brand equity backed by differentiated value proposition, impactful sales promotions and rejuvenated supply chain strengthened the Company’s market leadership, boosting overall realisations.

• Highest ever cement sales volume at 18.4 Mn T up 20% YoY.
• Highest ever quarterly revenue at Rs 10,289 Cr. up 23% YoY, supported by higher trade volumes by 2.4% and higher share of premium products as a % of trade sales @ 33% (up 43% YoY), with solutions-oriented product focus, rejuvenated supply chain and superior brand pull across key markets.
• Market share up ~2pp, @ 15.5%

Cost:

In our targeted cost reduction journey with the planned initiatives, primarily envisages reduction in Power & Fuel, Logistics Cost and Raw Materials cost optimisation.

• One of the lowest manpower cost of Rs. 223 PMT amongst peers in the industry.
• Green power share uptick with every passing quarter, improved by 9.7 pp to 28.1%, target to reach 60% by FY 28. This will reduce existing power cost of ~ Rs. 5.9/kWh to ~ Rs. 4.5/kWh by FY 28.
• Power consumption PMT of Cement also expected to improve by at least 5 units basis the efficiency of new assets & efficiency improvements of existing assets.
• Coal cost has improved from Rs. 1.73 to Rs. 1.59 per ’000 Kcal and expected to sustain near these levels. Importantly, the heat consumption will improve by at least 35 Kcal / Kg of Clinker for various initiatives outlined, including new Kilns.
• Primary lead distance reduced by 8 km @269 Kms and is expected to further reduce by ~ 50 Km when 140 Mn MT is achieved. This will help to reduce logistics cost by ~ Rs. 150 / MT, also supported by higher rail/sea logistics. Current cost Rs. 3.03 PTPK.

 Balance Sheet strength

• Net worth at Rs. 66,436 Cr, Company remains debt free & continues to maintain highest rating Crisil AAA (stable) / Crisil A1+
• For Ambuja Cements (consolidated), business level working capital stands at 30 days, reflecting agility in unblocking the funds in inventory and receivables
• Healthy cash flows to sustain the Capex program

Digitalisation

Digitisation initiatives continue to be focus area leveraging the business growth with strong focus on EBITDA maximisation

• AI driven Advance Business Optimiser tools
• End to end seamless applications of Channel partners
• Plants of Future concept progressing well
• First in the industry to adopt DIGIPIN for address standardisation and hyperlocal marketing, will help to reduce freight cost

Comparison with Global Standards

At Ambuja Cement, we believe that true leadership is defined not just by scale, but by how we measure up to the best in the world. We are consistently benchmarking our performance across key parameters: energy efficiency, carbon footprint, water conservation, digital adoption, safety, and innovation against global industry leaders. Our focus on lower clinker factor, alternative fuel usage, and WHRS integration places us among the most sustainable cement producers globally.

We are aligning with international frameworks such as the Science Based Targets initiative (SBTi), Global Cement and Concrete Association (GCCA) guidelines, and Task Force on Climate Related Financial Disclosures (TCFD). Our ESG disclosures and sustainability roadmaps are designed to meet or exceed global expectations, ensuring that our practices remain future ready and globally competitive. Annual Reports, Sustainability Reports, Tax Transparency Report, and Governance Framework are of the highest standards.

Financial Performance for the Quarter ended June 30, 2025:

Update on Mergers:

The Hon’ble National Company Law Tribunal, Ahmedabad Bench (NCLT Ahmedabad) has pronounced the order sanctioning the Scheme of Amalgamation of Adani Cementation Limited with Ambuja Cements Limited on 18th July 2025. This will give an access to high grade Limestone reserve of 275 Mn T at Mudhvay, Gujarat and a Jetty enabling waterway distribution catering to western India markets along with a grinding facility of 1.3 Mn T

ESG Updates

• Ambuja Cements India’s only and globally among the four large-scale cement companies to have their science-based net-zero and near-term targets validated by the SBTi.
• Launched its Digital BRSR (Business Responsibility and Sustainability Reporting) for financial year 2024-25 which is available on its website: (https://www.ambujacement.com/digital-brsr-2024-25/index.html). This digital report enables a quick overview and ease of access to information on the Company’s ESG Performance in an interactive and interesting manner.
• Completed Environment Product Declaration certification for PPC, which is now published at EPD (Environmental Product Declarations) International, Sweden.
• Increase in Green Power usage by 9.7 pp to 28.1% during the quarter.
• Continues to invest in its initiatives of water conservation, co-processing of waste, use of waste derived resources and community development programmes in education, healthcare, livelihoods, and infrastructure. The Company is upskilling the communities through robotics labs, drone labs, rural KPOs, youth skilling, women empowerment—creating a blueprint for inclusive growth.
• Marking the new era of holistic education in the presence of the board members, the Company inaugurated a new building of DAV ACC Public School – ‘Kalpshila’ and a heritage wing at ACC’s Kymore plant. Through the Adani Vidya Daan initiative, the leadership continues to inspire and shape the future of over 10,000 students across Adani Vidya Mandirs, SEDI and campus institutions at our plants.

Branding and Technical Services

• NirmAAAnotsav – a flagship engagement program series in partnership with CREDAI was launched with first event in Ahmedabad; plans for 20+ cities this year.
• Engagement Initiatives like ‘CEO ke Saath Baatcheet’ launched for Channel Partners and Contractors through nationwide outreach programmes, interactions and recognition, reinforcing trust and partnership. This led to a strong homecoming of >50 dealers, reflecting renewed confidence and shared growth opportunities,
• Adani Certified Technology implemented for 20,473 customer sites, helping deliver stronger, more durable construction outcomes.
• A total of 317 skill-building workshops conducted, covering 9,077 contractors across regions.
• A special recognition platform – CEO Club was launched, bringing together top-performers across Channel Partners and Contractors. From certified training and plant visits to safety gear distribution and family-focused activities, building a community of builders aligned with our strategic vision.
• Engagement through deeper connect and emotional intelligence, connected and rewarded the families of channel partners through a hybrid platform – DHANVARSHA Gruhalaxmi Soubhagya Awards. The inaugural event brought together over 50,000 celebrating families of dealers, blending performance with purpose.
• Boosting awareness on premium solutions with Cinema campaigns and Audio Ads on popular music streaming platforms like Spotify, JioSaavn, Wynk, Gaana, Pocket FM, etc.
• Strategic brand placements during IPL 2025, reaching out to 600M+ audiences.
• Print ads in TOI and ET across Top 8 metro cities, highlighting Ambuja Cements’ role as the lead cement supplier for the world’s highest single-arch railway bridge across the Chenab River in Jammu & Kashmir.

Learning from Industries and Best Practices to be implemented

Ambuja Cements’ journey is also defined by a deep commitment to continuous learning and innovation from industry’s best practices, both domestic and international markets. This enables adoption of proven strategies that enhance productivity, safety, and sustainability. This includes adopting global standards in process automation, green logistics, alternative fuels, digital transformation initiatives, replicating successful use cases in AI-led maintenance, smart dispatch, and real-time tracking systems. The Company also draws insights from peers and cross-industry leaders to elevate its operational excellence, customer-centricity, and governance practices. By creating an ecosystem of shared knowledge, benchmarking, and best-in-class adoption, Ambuja Cements continues to lead the way in building the next generation of smart, sustainable, and scalable cement operations.

• World’s 9^th largest Cement Company, amongst fastest growing with World’s highest altitude cement plant.
• World’s first cement company to join the Alliance for Industry Decarbonization (AFID), under the International Renewable Energy Agency (IRENA).
• Committed to Net Zero emissions by 2050. Ambuja along with its subsidiary ACC are India’s leading and globally one of the four large scale cement companies with science-based net-zero targets validated by the SBTi.
• Amongst the few large cement companies in the world which has strategic partnership with Finland-based ‘Coolbrook’ to implement RotoDynamic Heater™ (RDH™) technology, for reducing fossil fuel dependency by harnessing Renewable Electricity for zero carbon high-temperature process heating.

Outlook

Cement demand during Q1 FY’26 registered 4% growth, compared to the marginal 2% growth during the same period in FY’25. Growth was largely driven by the Government’s ongoing flagship programmes – PMAY, PMSY, Bharatmala, Sagarmala and other cement intensive projects. The cement sector’s growth outlook for Q2 FY’26 continues to remain positive. For FY‘26, we expect cement demand to grow in the range of 7% – 8% backed by sturdy rural and urban demand, modest pickup in infrastructure spending and a steady recovery in housing & real estate. Ambuja Cements is well-positioned to capitalise on this growth with its expanding capacity, cost leadership, and sustainability focus.

Achievements

• Ambuja Cements ranked as ‘India’s Most Trusted Cement Brand 2025’ consecutively for 4th year in a row by TRA Research in its Brand Trust Report 2025.
• #GiantsTogether campaign won Bronze in the B2B Film category at the Good Ads Matter Awards 2025.
• Recognised with the ‘GEEF Global Emerging Environmental Excellence Company of the Year 2025’ award in the Cement Industry category.

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