Ambuja Cements expects consolidated cement sales volume to outpace the industry in the second half of FY27, as it looks for growth across trade and institutional channels.
Consolidated cement sales volume was 16.5 million tonnes in Q2 FY27, which ended Sept. 30, compared with 16.6 million tonnes in Q2 FY26. Trade volumes rose 8.6% year over year, while trade accounted for 74% of sales, an increase of six percentage points.
The company’s Oct. 29 release said it expects second-half volume growth to exceed the industry rate. It gave no percentage target, linking the outlook to stronger trade activity and a measured approach to institutional orders.
On an Oct. 29 investor call, Vinod Bahety, Ambuja Cements’ whole-time director and chief executive officer, said trade volumes were higher year over year in Q2, while business-to-business (B2B) volumes remained negative. He expects both channels to return to growth in Q3 and Q4 FY27.
LiveMint reported that dealers and distributors connect trade sales with individual homebuilders and small contractors. The outlet described institutional or B2B sales as bulk cement orders for large customers, such as government projects, real estate companies and infrastructure developers.
Ambuja said it plans to keep trade as its main growth channel while managing institutional sales with attention to value and returns. Premium products represented 37% of trade sales in Q2 FY27, up from 35% a year earlier; blended cement’s share rose to 82% from 77%.
Ambuja commissioned 4.6 million tonnes per annum of capacity in the quarter. It said a further 5.6 million tonnes per annum was ramping up or due to enter service in H2 FY27.
The company cited infrastructure spending, urbanization, rural housing and industrial activity as supports for cement demand. It also said fuel and logistics costs continued to pressure margins, citing petcoke and coal prices, tighter coal availability, and higher diesel and packaging costs.
Ambuja reported Q2 costs of ₹4,410 per tonne, or ₹4,182 excluding the impact of geopolitical conflicts, against its FY27 target of ₹4,250 per tonne. EconoTimes previously reported that the company’s Q2 EBITDA margin narrowed to 13.8%.
Q3 and Q4 sales by channel are the next indicators of whether trade gains and an institutional recovery emerge. Ambuja did not give a specific reporting date.
