Ambuja Cements reported a 20% YoY rise in revenue to ₹10,180 crore in Q3 FY26, but net profit plunged 86% to ₹367 crore.
Rising power, fuel and logistics expenses pushed EBITDA down 21% to ₹1,353 crore, while EBITDA margin fell 500 basis points to 13.2%.
The company posted its highest-ever quarterly cement volumes of 18.9 million tonnes, with management outlining cost-reduction plans to improve efficiency and profitability by FY28.
Ambuja Cements Q3 Profit Plunges 86% Despite Record Sales Volume, Shares Tank 5%
Following the announcement of its results, Ambuja's shares tanked as low as 5% at 2:46 PM on BSE on Friday. The shares were changing hands at ₹509 as compared to the previous close of ₹536. Notably, the company closed 4.81% lower at ₹510.20 on BSE and ₹509.50 on NSE
Ambuja Cements Q3 Profit Plunges 86% Despite Record Sales Volume, Shares Tank 5% Shutterstock
Summary
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Adani Group-owned cement producing company, Ambuja Cements reported their quarterly results for the quarter ending December 31 for the financial year 2025-26 (FY26).
Its consolidated revenue from operations rose to ₹10,180 crore, up 20% year-on-year (YoY) from ₹8,498 crore in the corresponding quarter last quarter. Meanwhile, its consolidated net profit plunged nearly 90%. The company reported net profit of ₹367 crore, down 86% from ₹2,663 crore in the same period last year.
The sharp drop in net profit for the quarter can be attributed to a significant rise in operating expenses. Power and fuel costs, as well as freight and forwarding expenses, jumped to ₹4,970 crore from ₹4,105 crore in Q3FY25. Net profit was also impacted by a one-time charge of ₹107 crore related to the implementation of the new labour codes.
Following the announcement of its results, Ambuja's shares tanked as low as 5% at 2:46 PM on BSE on Friday. The shares were changing hands at ₹509 as compared to the previous close of ₹536. Notably, the company closed 4.81% lower at ₹510.20 on BSE and ₹509.50 on NSE.
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Higher costs also hurt the company’s operating performance during the quarter. As a result, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) fell to ₹1,353 crore, down 21% from ₹1,712 crore in the same period last year.
The EBITDA margin also declined by 500 basis points YoY to 13.2%, compared with 18.2% in the corresponding quarter last year.
Despite the pressure on profits, the company sold more cement than ever before. Cement volumes touched a record 18.9 million tonnes during the quarter, up 16.6% from 16.2 million tonnes a year ago.
"We continue our strong growth trajectory with another robust performance this quarter, following an exceptional previous quarter. We achieved highest ever quarterly volumes, higher trade/premium cement sales resulting into better realisation than industry peers and better base capacity volume growth," said, Vinod Bahety, Whole Time Director & CEO.
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"This has helped us to improve our marketleadership. We are now working to fix some of the specific issues on cost, importantly, power cost, share of green power, fuel efficiency, improvement of WHRS / AFR (Waste Heat Recovery SystemsAlternative Fuels and Raw Materials), improvement of logistics cost, which is part of the blueprint to achieve the targeted cost of ₹3,650 per metric ton (PMT) by March 2028," he added.