Ambuja Cements’ consolidated profit after tax fell to ₹236 crore in Q2 FY27, while its operating margin narrowed to 13.8%, as fuel and other input costs weighed on the company’s results.
For the quarter ended Sept. 30, revenue from operations edged up to ₹9,197 crore from ₹9,175 crore a year earlier. Operating earnings before interest, taxes, depreciation and amortization (EBITDA) fell to ₹1,271 crore from ₹1,762 crore. The margin declined 5.4 percentage points to 13.8% from 19.2%, while EBITDA per tonne fell to ₹770 from ₹1,061.
The year-earlier quarter recorded profit after tax of ₹2,336 crore, including a ₹1,697 crore reversal of an income-tax provision, according to Ambuja’s Oct. 29 results release. That tax adjustment affected the year-over-year comparison as operating earnings also declined.
Ambuja said higher petcoke and coal prices, tighter coal availability, and increased diesel and packaging expenses pressured industry margins. The company put quarterly costs at ₹4,410 per tonne, or ₹4,182 per tonne excluding the impact of geopolitical conflicts.
Cement sales volume was 16.5 million tonnes, compared with 16.6 million tonnes a year earlier. Trade volumes rose 8.6% year over year, and trade accounted for 74% of sales, up six percentage points. Premium products made up 37% of trade sales, versus 35% a year earlier.
The company said it commissioned 4.6 million tonnes per annum of capacity during Q2. Ambuja said another 5.6 million tonnes of annual capacity was being ramped up or was expected to begin operating in the second half of FY27.
Vinod Bahety, Ambuja Cements’ whole-time director and CEO, said he expects the company’s sales volume to grow faster than the industry in the second half of FY27, helped by stronger trade sales and a measured approach to institutional customers. He reiterated a cost target of ₹4,250 per tonne by FY27.
