Adani Group‑owned Ambuja Cements reported a consolidated net profit of ₹193 crore for the second quarter of financial year 2026‑27, a decline of 84% from ₹1,174 crore during the same period last year. Revenue from operations rose marginally to ₹9,166 crore from ₹9,130 crore in the year‑ago period. Operating profit, or EBITDA, slipped 28% to ₹1,240 crore from ₹1,717 crore, while the EBITDA margin contracted to 13.53% from 18.81% in the corresponding period of FY26. The company cited geopolitical issues, monsoon‑related disruptions, seasonal shutdowns and higher energy costs as key factors impacting performance.

Ambuja Cements highlighted that commercial diesel prices had increased by 25‑30% over the past six months, with escalated geopolitical issues adding an impact of around ₹228 per tonne during the quarter. Despite these headwinds, the broader demand environment remained supported by continued infrastructure spending, urbanisation, rural housing and industrial activity. The company’s CEO, Vinod Bahety, noted that strengthening trade and a premium product mix improved revenue quality, while disciplined execution and cost management supported profitability.

On a consolidated basis, the company reported cement sales volume of 16.5 million tonnes in Q2 FY27, with trade volumes increasing 8.6% annually and the trade share rising by 6 percentage points to 74%. Premium products accounted for 37% of trade sales, up 2 percentage points. In the same quarter, Ambuja commissioned 4.6 million tonnes per annum (MTPA) of capacity, including 1.2 MTPA at Dahej, 2.4 MTPA at Salai Banwa and 1 MTPA at Kalamboli. Additional capacities at Bathinda and Jodhpur Penna had stabilised and were ramping up in the second half of FY27.

The company expects to commission 2.4 MTPA of capacity at Warisaliganj in the second half of FY27. Bahety stated that the implementation of BCFC infrastructure, a higher share of renewable power, and the ramp‑up of new capacities and additional incentives from these capacities are expected to support performance in H2 FY27. Ambuja maintained a debt‑free balance sheet with a net worth of ₹72,238 crore and cash & cash equivalents of ₹1,070 crore, reinforcing its financial position.

Logistics costs were moderately higher YoY due to higher diesel costs, partly offset by a reduction in primary lead from 265 km to 254 km. Total cost in Q2 stood at ₹4,410 per tonne, excluding the impact of geopolitical conflicts, at ₹4,182 per tonne. The company is on track to achieve its cost target of ₹4,250 per tonne by FY27. Bahety added that volumes are expected to grow ahead of the industry in H2 FY27, supported by accelerated trade volumes and calibrated institutional sales, with further pricing improvement anticipated following a recent price increase of ₹10‑15.

On Thursday, Ambuja Cements shares closed at ₹354.70 apiece on the National Stock Exchange, rising 1%. Shareholders approved the proposed amalgamation of ACC and Orient Cement with the company, advancing the One Cement Platform. The schemes remain subject to requisite approvals and are expected to be completed in FY27, marking a significant step in the company’s consolidation strategy.