Ambuja Cements Q2 Results: Net profit tanks 90% YoY to Rs 114 crore on tax reversal effect; revenue rises 10%

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Ambuja Cements Q2 Results

The company’s revenue from operations came in at Rs 6,113 crore for the September-ended quarter, up 10% from Rs 5,579 crore posted in the corresponding quarter of the previous financial year.

Ambuja Cements said net profit was lower due to an income tax provision reversal of Rs 1,697 crore in the same quarter last year.

Alongside Q2, the shareholders have approved the proposed amalgamation of ACC and Orient Cement with Ambuja Cements, advancing the company’s One Cement Platform initiative. The schemes remain subject to the requisite approvals and are expected to be completed in FY27.

On a consolidated basis, EBITDA margins witnessed a steep decline to 13.8% from 19.2% posted in the year-ago period, Ambuja Cements said in a regulatory filing on Thursday afternoon.

Cement sales volume stood at 16.5 million tonnes during the quarter, nearly identical to that in the year-ago period. Trade volumes grew 8.6% YoY, while the trade share increased by 6 percentage points to 74%. Premium products accounted for 37% of trade sales, up 2 percentage points.

Near-term conditions remain challenging due to geopolitical conflicts, global uncertainty and higher energy costs, following monsoon-related headwinds during the quarter. However, structural demand continues to be supported by infrastructure spending, urbanisation, rural housing and industrial activity. The company remains focused on quality growth, premiumisation, operational efficiency, disciplined capital deployment and progress towards the One Cement Platform. “We remain well-positioned to deliver sustainable, value-led growth.”

Ambuja Cements Whole-time Director and CEO Vinod Bahety said the company’s Q2 and H1 FY27 performance reflected its focus on quality growth despite seasonal and external headwinds. A stronger trade and premium product mix improved revenue quality, while disciplined execution and cost management supported profitability.

The company continues to strengthen earnings drivers through manufacturing excellence, energy efficiency, logistics optimisation and digitalisation, backed by a debt-free balance sheet. It commissioned 4.6 MTPA of capacity in Q2, with another 5.6 MTPA expected to ramp up in H2 FY27.

Ambuja remains on track to achieve its cost target of Rs 4,250 per tonne by FY27. Its growth strategy continues to be trade-led, while the company is strengthening its institutional business through a comprehensive solutions approach focused on value and profitability. Volumes are expected to grow ahead of the industry in H2 FY27, supported by faster trade volume growth and calibrated institutional sales.

Following the recent Rs 10-15 price increase, the industry expects further price improvement over the next couple of months.