Ambuja Cements’ operating EBITDA fell 28% in the September quarter as its margin narrowed, while the Indian cement maker outlined capacity additions and per-tonne cost targets for the rest of fiscal 2027.
Ambuja’s Q2 presentation put operating earnings before interest, taxes, depreciation and amortization (EBITDA) at ₹1,271 crore, compared with ₹1,762 crore a year earlier. Its EBITDA margin narrowed to 13.8% from 19.2%.
Consolidated profit after tax fell 90% to ₹236 crore from ₹2,336 crore in Q2 FY26. The year-earlier figure included a ₹1,697 crore reversal of an income-tax provision, according to Ambuja’s reconciliation. On the company’s normalized measure, profit was ₹300 crore, down 54% from ₹652 crore.
Cement sales were 16.5 million tonnes, versus 16.6 million a year earlier. Trade volumes rose 8.6%, lifting trade’s share by six percentage points to 74%; premium products made up 37% of trade sales.
Ambuja said higher fuel and logistics costs weighed on industry margins, citing higher petcoke and coal prices, constrained coal availability, and diesel and packaging expenses. It reported total costs of ₹4,410 per tonne and set targets of ₹4,250 in FY27 and ₹4,000 in FY28.
Cement capacity stood at 113.5 million tonnes per annum (MTPA) as of Sept. 30. Ambuja commissioned 4.6 MTPA during Q2 and has 5.6 MTPA in its H2 FY27 pipeline: 3.2 MTPA ramping up and 2.4 MTPA expected to be commissioned. Its presentation also lists 14 planned projects totaling 29.7 MTPA.
The company forecast that its sales-volume growth would outpace the industry in H2 FY27. Vinod Bahety, Ambuja’s whole-time director and CEO, said the company was focused on “quality growth despite seasonal and external headwinds.” The next stated milestones are H2 volume growth and progress toward the FY27 cost target.
Separately, NDTV Profit reported an unconfirmed brokerage view that retained a Buy rating on Ambuja and cut its FY28 target to ₹457 from ₹568. The report said the brokerage cited lower volume growth and reduced its assumed EV/EBITDA multiple to 10 times from 12 times. Its byline and attachment identify Systematix Institutional Equities, while a subhead calls it a Motilal Oswal report.
