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Ambuja Delivers Sustainable Q1 FY'27 Performance Driven by Value-Led Growth and Operational Excellence

By IndianMandarins- 1 hour ago
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Ahmedabad (28.07.2026): Ambuja Cements Limited, part of the diversified Adani Portfolio, delivered robust performance for the first quarter ended 30 June 2026. 
Vinod Bahety, Whole Time Director and CEO, Ambuja Cements Limited, said, “We have started FY'27 with strong momentum, driven by our focus on value-led growth, premiumisation and disciplined execution. Higher trade sales and an increased share of premium products strengthened our market mix, resulting in improved profitability and quality of earnings.
Despite temporary cost headwinds arising from the West Asia geopolitical tensions, we delivered a sequential cost reduction of Rs. 206 PMT through operational excellence, improved energy efficiency, a lower clinker factor and disciplined cost management. This resulted in a 331 bps QoQ expansion in EBITDA margin to 16.7%.
Looking ahead, we are confident on continuing our momentum and improve our cost structure further. We are well on track to increase our capacity to 119 MTPA by the end of FY’27, with the commissioning of Dahej (1.2 MTPA), Salai Banwa (2.4 MTPA), Bathinda (1.2 MTPA) Jodhpur (2 MTPA), Kalamboli (1 MTPA) and Warisaliganj (2.4 MTPA). We are firmly on course to deliver cost reduction of approximately Rs 250 PMT to achieve targeted cost of Rs 4,250 PMT by end of FY’27.
At the same time, we continue to strengthen our leadership in sustainable construction through innovation and our partnership with LEILAC, accelerating our low-carbon transition and building capabilities that will support the next phase of growth."
Balance Sheet Strength:
  • Debt‑free balance sheet with a net worth of Rs 71,954 Cr and cash & cash equivalents of Rs 844 Cr.
  • Highest AAA / A1+ credit ratings from CRISIL and CARE. 
  • Healthy operating cash flows continue to support the Company’s capex and growth programme.
Capacity Expansion: 
  • Cement capacity stood at 109 MTPA as of 30 June 2026 and is expected to reach 119 MTPA by the end of FY’27.
  • Trial production commenced: Dahej (1.2 MTPA), Salai Banwa (2.4 MTPA), Bathinda (1.2 MTPA) and Jodhpur (2 MTPA).
  • Kalamboli (1 MTPA), Warisaliganj (2.4 MTPA) will have trials in Q2 and Maratha clinker line (4 MTPA) will be commissioned in 2027. 
  • Continued focus on stabilising newly commissioned capacities and improving utilisation across the existing asset base.
ESG Updates:
  • Partnered with UK-based Leilac Limited, to establish one of the world's largest commercial-scale pathways for low-carbon cement production. The partnership advances the Company’s decarbonisation roadmap and SBTi-validated Net Zero 2050 targets.
  • Ambuja Cements and ACC received GreenPro certification from CII for its blended cement portfolio, reinforcing commitment to sustainable products and responsible construction solutions.
  • Adding another layer of independent validation of sustainable products and responsible construction solutions, the Company achieved a significant milestone by securing GRIHA certification across its entire blended cement portfolio spanning both B2B and B2C segments, including the newly launched Buildcem and Buildcem Pro range. It has strengthened the depth of this recognition by securing certification under additional GRIHA typologies for Life Cycle Assessment (LCA) and Innovation based on Environmental Product Declaration (EPD), extending credentials beyond products to validated lifecycle performance, enabling customers to advance green building and ESG objectives.
  • Continued progress across renewable energy, water conservation, circular economy and resource efficiency initiatives, as well as tree plantation and community development programmes, supporting its long-term sustainability strategy.
  • Launched the Digital BRSR for FY 2025-26, providing stakeholders with interactive and accessible ESG disclosures and sustainability performance updates. The report is available on the Company's website.
Digitalisation:
  • • Infrastructure & Cybersecurity: Strengthened cyber resilience through OT security deployments, IT–OT segregation and infrastructure upgrades across operations.
  • • Manufacturing: Enhanced operational visibility, reliability and efficiency through IoT-enabled predictive maintenance, automation and digital knowledge management systems. 
  • • Enterprise Digitalisation: Advanced business process through MDM, DIGIPIN, Invoice-to-Pay automation, One Connect rollout and strengthened project governance. 
  • • AI & Analytics: Expanded AI-enabled decision-making through DigiNav NLP and real-time access to 40+ business KPIs across key functions.
  • Branding and Technical Services:
  • • Strengthened the market positioning of Ambuja Kawach and ACC Gold through high-impact outdoor branding and digital engagement initiatives across key markets. 
  • Adani Cement brands - Ambuja Cement and ACC won five Silver Awards at The Mommys Awards 2026 for excellence in brand storytelling, creativity and communication effectiveness.
  • Enhanced engagement with trade and non-trade stakeholders through participation in the National Conclave for Building Materials, jointly organised by NAREDCO and Bharat Buildcon.
  • Continued strong technical services engagement through 36,794 ACT sites, 237 skill-building workshops and 323 technical events, reaching over 14,000 participants and generating 301,347 leads during the quarter.
Impact of West Asia Conflict on Industry:
  • The Indian cement sector witnessed cost pressures during Q1 FY’27 from higher prices of imported fuels such as petcoke and thermal coal, along with elevated freight and logistics costs resulting from geopolitical developments in West Asia. 
  • Given the 60–90 day fuel inventory cycle, the impact of peak fuel cost inflation is expected to coincide with the seasonally weaker Q2, potentially impacting industry profitability in the near term.
  • The Company continues to mitigate these pressures through fuel mix optimisation, greater renewable energy adoption, logistics efficiencies, a focus on higher-margin markets and disciplined cost management.

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