Ambuja Cements, part of the diversified Adani Portfolio and the 9th largest building materials solutions company globally, has delivered a robust performance in Q2 FY26.
According to a company release, a comprehensive focus on market share gains and R&D-led premium cement offerings has enabled differentiated performance both in volume growth and improved realizations.
Vinod Bahety, Whole Time Director & CEO, Ambuja Cements, said: “This quarter has been noteworthy for the cement industry. Despite the headwinds from prolonged monsoons, the sector will benefit from the tailwinds of several favourable developments including GST 2.0 reforms, the Carbon Credit Trading Scheme (CCTS), and the withdrawal of coal cess.”
“Our capacity expansion is well timed to capitalise on this positive momentum. We have upped our FY28 target capacity by 15 MTPA from earlier 140 MTPA to now 155 MTPA. This increase of 15 MTPA from debottlenecking initiatives will come at a much lower capex of USD 48/MT. In addition, debottlenecking of plant logistics infrastructure will help in improving existing capacity (107 MTPA) utilisation by 3%,” he said.
“We are also installing 13 blenders at our plants over a period of 12 months which will optimise mix and increase share of premium cement, in turn improving realisation. The leadership journey has resulted in a 5% lower cost of sales YoY and enabled our existing assets to deliver a PMT EBITDA of ~Rs. 1,189 PMT, and an overall EBITDA of Rs. 1,060 PMT. Our outlook for the balance period of FY26 remains positive. We remain optimistic about delivering double digit revenue growth and four digits PMT EBITDA. Exit of FY26 we target to deliver total cost of Rs 4,000 PMT, and further 5% reduction YoY for the next two years, helping us to achieve the cost target of Rs. 3,650 PMT by FY28,” Bhatey added.
“Our Cement Intelligent Network Operations Centre (CiNOC) will enable a paradigm shift across business operations. AI will run deep into our enterprise fabric, bringing efficiency, productivity and deeper engagement with stakeholders across the value chain,” he further said.
The company statement further said that with a comprehensive focus on value and market share, realisations improved 3% YoY, market share improved 1% to now 16.6%, realisation, share of premium cement sustained at 35% of trade sales (volume growth of premium cement is 28% YoY).
Group synergies & efficiencies have started yielding results wherein total Cost reduced by 5% YoY, led by Kiln Fuel cost (incl. AFR) at 1.60/’000 kCal, it is Rs 1.65/’000 kCal (excl. AFR), which is lowest amongst peers. Company has 2 months equivalent inventory of this low-cost coal which will help to sustain the lower cost, it further added.
Cost in H2 expected to reduce by ~Rs. 200 PMT due to improved efficiencies and higher operating leverage, reduced lead distance and higher share of green power. This will further be supported by benefit of removal of cess on coal and improved AFR utilisation. Q2 % of coal & petcoke has 66% & 34% respectively. This will further improve to 71% coal & 29% petcoke in H2.
FY 26 end target of total cost ~ Rs. 4,000 PMT will set pace for further 5% reduction each year over next two years, putting trajectory to achieve Rs. 3,650 PMT by end of FY 28. This will be mainly on account of lower raw-materials cost (~Rs. 50 PMT), Power & Fuel (~Rs. 200 PMT), Logistics cost (~Rs. 100 PMT) and other overheads (~Rs. 50 PMT), supported by higher share of coal consumption (reduced petcoke) supported with group synergies, benefit of withdrawal of coal cess, the release further added.
Furthermore, latest technology of new capacities of IU/GU providing improved operational efficiencies (heat /power consumption) (average age of Plants will come down by at least 40% further). Lead distance expected to come down by 50 Km with the revised 155 MTPA capacity, sea logistics share to reach 5%. Sixty percent green power share to reduce power to Rs. 4.5 per kwh (current power cost of Rs. 6.0 per kwh in Q2 FY 26).
Moreover, long term tie-ups of Fly Ash & Slag will ensure supplies at sustainable costs, reduce clinker factor by 1%.
There will be an added advantage of Operating Leverage with increase in planned capacity by 10% on account of the debottlenecking initiative, which will provide headroom towards the Cost Leadership journey.
Net worth at Rs. 69,493 Cr, Company remains debt free and continues to maintain highest rating Crisil AAA (stable) / Crisil A1+. Healthy cash flows will sustain the Capex programme, the release further added.
Capacity & Expansion
Total cement capacity reached ~107 MTPA in Q2, well on track to achieve target of 118 MTPA by FY 26 and 155 MTPA by FY’28 (upped from earlier target capacity of 140 MTPA).
Trial run has successfully started for a 4 MTPA new kiln line at Bhatapara.
Two MTPA Krishnapatnam GU has been operationalised taking total capacity to 4 MTPA. This coast-based capacity complements the sea logistics infrastructure available within the Company.
Cement GUs at Salai Banwa (2.4 MTPA), Marwar (2.4 MTPA), Dahej (1.2 MTPA), Kalamboli (1.0 MTPA) are expected to be commissioned in Q3 FY26 (total 7 MTPA) while an additional 5.6 MTPA (Bhatinda, Jodhpur, Warisaliganj) will come in Q4, which will help to achieve the target of 118 MTPA by FY26.
The debottlenecking and ongoing expansions will add 5.6 MTPA in FY27 and 9.4 MTPA in FY28, the company said.
Adani Cement capacity average age in 2022 was 38 years, influenced by legacy of ACC assets (average age of 50 years). Average age has improved by almost 40% and will further sharply improve at 155 MTPA by FY28. This will provide opportunities for improved efficiency and better operating leverageAs a business, we are getting younger by the day with our plant average falling by almost 50% by FY28. Our average age of employee has substantially improved from where we started to now ~38 years, the release added.
Integration of Acquired Assets
Orient, Penna and Sanghi have moved ~100% into Adani Cement (Ambuja/ACC) brands with positive response from dealers, other supply chain partners and end customers. A higher sales promotion cost of Rs. 30 PMT was absorbed this quarter.
Acquired assets major maintenance has been completed and cost of Rs. 42 PMT has been absorbed this quarter.
Orient EBITDA is in line with expectations, Penna and Sanghi will see improvement on account of higher capacity utilisation & operational excellence, resulting improved consolidated EBITDA in coming quarters, the company said.
Part of Iconic Infrastructure
Ambuja Cement is the lead cement supplier for several iconic infrastructure projects in recent times:
Navi Mumbai International Airport.
World’s highest single-arch railway bridge over the Chenab River
Supplied concrete for raft foundation of world’s tallest Maa Umiya Temple in Ahmedabad, setting a new world record (24,100 cubic meterwithin uninterrupted 54 hours)
Strategic Engagements / Initiatives
- CiNOC – The Company is infusing an AI layer deep into our enterprise fabric, transforming every plant, process, and person into part of a self-learning, high-velocity operating network. Through a web of Agentic AI teammates, we are fusing human judgment with machine precision enabling our systems to sense decide, and act autonomously across sales, production and logistics. This will bring a paradigm shift in our operations.
- MoU with CONCOR for movement of Tank Containers will help to optimise logistics costs & facilitate in net zero emission commitment. The partnership also opens pathway for setting up Bulk Cement Terminals (BCTs) which will be announced in due course.
- SamvAAAd, NirmAAAnotsav, Adani Cement FutureX, Dhanvarsha initiatives launched for wider and deeper engagement with various stakeholders.
- Ambuja in Global Context
- World’s 9th largest cement company, among the fastest growing with the world’s highest altitude cement plant.
- World’s first cement company to join the Alliance for Industry Decarbonization (AFID), under the International Renewable Energy Agency (IRENA).
- Ambuja along with its subsidiary ACC are India’s leading and globally one of the four large scale cement companies with science-based net-zero targets validated by the SBTi for near term 2030 and long term 2050.
- GST on cement has been reduced from 28% to 18% under GST 2.0 reforms wef September 22, 2025, entire benefit has been passed on to the customers. In this regard, Company has put forth wide communication in the national media, social media, communication to the dealers and other channel partners. Overall GST reforms resulting into reduced cement prices have helped aspiring customers prefer Adani Cement’s Premium Products.
Also Read: Ambuja Cements and ACC Become India’s Leading Cement Companies With Net-Zero Targets Validated By The SBTi https://www.vibesofindia.com/ambuja-cements-and-acc-become-indias-leading-cement-companies-with-net-zero-targets-validated-by-the-sbti/
