Ambuja Cements Q1 Results Show Revenue Growth And Higher EBITDA Margins
Cement major reports higher revenue and improved margins.
Ambuja Cements Ltd. has reported a strong start to the financial year 2026-27, with its first-quarter revenue reaching ₹9,500 crore and operating EBITDA rising to ₹1,589 crore. The company said its EBITDA margin improved by 3.3 percentage points sequentially to 16.7%, driven by better product mix, higher trade sales, premiumisation efforts and cost optimisation measures. The results were announced in a company press release on Tuesday.
The cement manufacturer reported growth in several key operational areas during the quarter. The share of premium products increased by 1 percentage point year-on-year to 34%, while trade sales grew by 4 percentage points to 78%. The company also improved its clinker factor by 2.1 percentage points to 63.7% year-on-year, supporting efficiency improvements and helping reduce production costs.
Ambuja Cements achieved a sequential cost reduction of ₹206 per metric tonne (PMT) despite challenges arising from geopolitical tensions in West Asia. The company attributed the improvement to focused cost optimisation initiatives, operational efficiency, improved energy management and disciplined expense control. Ambuja also increased its renewable energy capacity by 75 MW to 973 MW, with green power accounting for 34% of its total energy mix. The company stated that it remains debt-free and continues to maintain the highest credit ratings.
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"We have started FY27 with strong momentum, driven by our focus on value-led growth, premiumisation and disciplined execution," said Vinod Bahety, Whole Time Director and CEO of Ambuja Cements. He added that stronger trade sales and a higher share of premium products helped improve the company's market mix, leading to better profitability and quality of earnings.
The company said it is progressing towards its target of expanding cement capacity to 119 million tonnes per annum (MTPA) by the end of FY27. The planned capacity additions include projects at Dahej, Salai Banwa, Bathinda, Jodhpur, Kalamboli and Warisaliganj, which together are expected to strengthen Ambuja's production capabilities. The company is also aiming to achieve a cost reduction of around ₹250 PMT and reach a targeted cost level of ₹4,250 PMT by the end of FY27.
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