Ambuja Cements’ Q2 profit surged 268% year-on-year to ₹1,766 crore, driven by improved margins and operational efficiency.
Revenue rose 21% to ₹9,174 crore in Q2 FY25, supported by strong demand despite prolonged monsoons.
CEO Vinod Bahety said the sector stands to gain from GST 2.0 reforms, the Carbon Credit Trading Scheme, and the coal cess withdrawal.
Adani Group’s cement arm, Ambuja Cements Ltd, on Monday reported a sharp rise in net profit for the quarter ended 30 September 2025. The company’s profit after tax (PAT) surged 268% year-on-year to ₹1,766 crore, compared with ₹480 crore in the same quarter last year.
During the same period, Ambuja Cements’ revenue rose 21% year-on-year to ₹9,174 crore, up from ₹7,552 crore in Q2 FY25.
“Despite the headwinds from prolonged monsoons, the sector will benefit from several favourable developments, including GST 2.0 reforms, the Carbon Credit Trading Scheme (CCTS), and the withdrawal of coal cess,” said Vinod Bahety, Whole-Time Director and CEO, Ambuja Cements.
He added that the company has raised its FY28 target capacity by 15 MTPA to 155 MTPA, up from the earlier 140 MTPA. This additional capacity, driven by debottlenecking initiatives, will come at a much lower capex of $48 per tonne.
“We are also installing 13 blenders across our plants over the next 12 months to optimise the product mix and increase the share of premium cement, which will in turn improve realisations. Our leadership journey has led to a 5% reduction in cost of sales year-on-year and enabled our existing assets to deliver an EBITDA of around ₹1,189 per tonne, and an overall EBITDA of ₹1,060 per tonne,” Bahety added.
The Adani Group’s flagship firm has maintained a positive outlook for FY26, expecting to deliver double-digit revenue growth and four-digit EBITDA per tonne.
“By the end of FY26, we aim to achieve a total cost of ₹4,000 per tonne, followed by a further 5% reduction year-on-year for the next two years, helping us reach our target cost of ₹3,650 per tonne by FY28,” the CEO said.
Ambuja Cements reported an operating EBITDA of ₹1,761 crore for the quarter, marking a 58% year-on-year increase. The operating margin improved by 4.5 percentage points to 19.2%, while earnings per share (EPS) rose to ₹7.2, up ₹5.2 from a year earlier, up 267%. The company’s net worth also increased by ₹3,057 crore to ₹69,493 crore.
On the operations side, trial runs have commenced for the new 4 MTPA kiln line at Bhatapara, Chhattisgarh, while the 2 MTPA Krishnapatnam grinding unit is now operational. Another 7 MTPA of capacity across three sites is expected to come online in Q3 FY26.
The company also commissioned 200 MW of solar power during the quarter, taking its renewable energy capacity to 673 MW. Ambuja plans to expand this to 900 MW by FY26 and 1,122 MW by FY27.
Following the earnings announcement, Ambuja Cements’ shares traded 1.65% higher at ₹574.55 on the BSE at 3:19 PM.
