Ambuja Cements held its Q4 FY26 earnings conference call on May 04, 2026, hosted by JM Financial Institutional Securities Limited. The call, which also covered ACC Ltd and Orient Cement as part of the consolidated Adani cement portfolio, featured key management including Director Mr. Karan Adani, CEO Mr. Vinod Bahety, CFO Mr. Rohit Soni, and Head of Investor Relations Mr. Deepak Balwani. The discussion covered FY26 financial performance, cost challenges, capacity expansion, and a recalibrated strategic outlook for FY27 and beyond.

FY26 Financial and Operational Highlights

Ambuja Cements reported its highest-ever annual sales volume for FY26, driven by strong execution across its expanded portfolio. The company described FY26 as a year of resilience for the Indian cement sector, marked by industry consolidation, GST 2.0 reforms, adverse weather conditions, global geopolitical factors, and state elections that affected demand. The company remains debt-free and holds the highest credit rating. The following table summarises the key financial metrics for FY26:

Management noted that FY25 and FY26 are not comparable on a like-for-like basis, as FY25 does not include Orient Cement, while Penna Cement was consolidated from August 16, 2025 (7.5 months in FY25 versus 12 months in FY26), and Orient Cement was consolidated for only 11 months in FY26. The finalized purchase price allocation for Orient Cement and Penna Cement has now been incorporated into the consolidated balance sheet, replacing the provisional basis used through December, resulting in marginal changes in balance sheet classification of goodwill and other intangible assets, as well as changes in depreciation and deferred tax accounting in the P&L.

Cost Structure and Q4 FY26 Pressures

The Q4 FY26 cost per tonne came in at approximately ₹4,500, against a full-year FY26 average of ₹4,400 per tonne — approximately 10% higher than the company's own internal target. Management attributed this to multiple factors:

• Higher freight costs due to increased primary and secondary sale lead distances
• Additional goods tax in certain states, including Himachal Pradesh
• Higher packing costs driven by the West Asia conflict, particularly in March
• Higher fuel costs due to above-expected heat consumption, especially at acquired assets
• Increased branding and sales promotion costs as the company accelerated its trade sales and premium cement push
• Higher repairs and maintenance costs at acquired assets, particularly Penna Cement
• Lower government incentives due to revised GST rates and exhaustion of incentive periods at certain plants

Management clarified that the ₹4,100 per tonne figure referenced in earlier communications referred to the exit cost for the month of March on a normalized basis, excluding the approximately ₹250 per tonne escalation from the West Asia-related packaging cost spike. The Q4 FY26 quarter average cost of ₹4,500 per tonne was described as the peak, with management expressing confidence in a progressive reduction from this level. Q1 FY27 cost is expected to remain flattish at approximately ₹4,500 per tonne before the reduction journey accelerates through the remaining quarters.

During the Q&A, management also highlighted that the EBITDA of Ambuja and ACC, excluding acquired assets, would be approximately ₹800 per tonne or higher on a normalized basis, underscoring that the drag is concentrated in the recently acquired plants. Management also noted lower government incentives as a contributor to EBITDA pressure — a combination of lower GST rates, exhaustion of incentive periods at certain plants, and a shift to accruing incentives only on a certainty basis.

Acquired Assets: Utilisation and Turnaround

The turnaround of acquired assets — Sanghi Industries, Penna Cement, and Orient Cement — remained a key focus area. Sanghi and Penna together hold 19 million tonnes of capacity, and management targets at least 5% to 10% improvement in utilisation for these assets. For Sanghi, the base ramp-up model is anchored on marine infrastructure, with 7 vessels ordered for progressive delivery, rather than being dependent on the Naliya railway line. The following table outlines utilisation context and targets:

Management acknowledged that turnaround initiatives have taken longer than expected, with Penna Cement in particular requiring higher-than-anticipated maintenance capex and upkeep. Breakdowns at acquired assets, especially Penna and Sanghi, were cited as a key contributor to elevated repairs and maintenance costs. Karan Adani noted that the company did not choose the right contractors for execution initially, projects were started without full engineering in place, and the team took time to build up — all factors that contributed to capex delays. The company has since used a six-month window to complete full engineering for new projects before committing to their start.

Capacity Expansion and Capex Outlook

Ambuja's cement capacity stood at 109 million tonnes as of FY26, with clinker capacity at 69 million tonnes. The company targets reaching approximately 119 million tonnes of total capacity by end of FY27, supported by ongoing grinding unit additions of approximately 10 million tonnes, including projects at Salai Banwa and Warisaliganj. An additional 4 million tonnes of clinker capacity is planned at Maratha, which would take clinker capacity to 73 million tonnes. Two new clinker projects — one at Mundra (2 million tonnes) and one in Assam (2 million tonnes) — are in the pipeline, with a targeted completion timeline of approximately 24 to 28 months.

Management described a recalibrated approach to capacity expansion, prioritising optimisation of existing capacities, completion of ongoing projects, and disciplined capital allocation. The earlier capacity target of 155 million tonnes has been pushed back, with management indicating a revised timeline of approximately FY30 for longer-term targets. The project IRR threshold was stated at 18%, given the all-equity nature of the investments. Karan Adani confirmed that debottlenecking exercises of approximately 15 million tonnes across assets remain on the agenda, with timing to be determined based on maximum return on investment. On inorganic growth, management stated that organic development and greenfield expansion remain the number one priority, while inorganic opportunities continue to be evaluated.

On strategic recalibration of capacity locations, Karan Adani noted that grinding units at several integrated locations are being relocated closer to markets to reduce logistics costs — with particular focus on North UP, Bihar, Southern Gujarat, and Maharashtra. Sanghi is being repositioned predominantly as a clinker unit over the next three years, with new cement grinding capacity to be established on the coastal region of Gujarat, including Dahej Line 2 as a key example.

FY27 Outlook, Pricing, and Strategic Priorities

For FY27, Ambuja targets consolidated volumes of approximately 80 million tonnes, representing approximately 8% growth, against an expected industry growth of approximately 5% to 5.5%. Management guided for a cost reduction of ₹250 per tonne from the ₹4,500 per tonne peak, implying a full-year FY27 average cost target of approximately ₹4,250 per tonne. A further ₹250 per tonne reduction is targeted for FY28. Key cost savings are expected from improved fly ash sourcing, higher green energy utilisation, and better heat consumption at acquired plants, with management estimating ₹150 to ₹200 savings from raw material and green energy components alone. Karan Adani confirmed that the company is not moving away from its earlier long-term cost target of ₹3,650 per tonne, describing the ₹500 cumulative reduction over two years as the near-term committed milestone on that journey.

On pricing, management noted a modest improvement of approximately ₹10 per bag in April over March in select geographies, while acknowledging continued industry-wide difficulty in passing on cost increases to customers given subdued demand. The price gap between Ambuja's base product and its premium cement offering stands at approximately ₹20 to ₹25 per bag for premium and ₹50 to ₹55 per bag for super premium variants. The company's strategic priorities for FY27 include:

• Scaling trade sales and sustaining premium cement at approximately 36% of trade sales
• Improving reliability and utilisation at Penna and Sanghi
• Completing ongoing capacity additions and stabilising new assets
• Advancing the One Cement platform integration (amalgamation of ACC and Orient Cement with Ambuja is under process)
• Pursuing disciplined capital allocation with a focus on high-potential markets where the company has leadership positions
• Implementing SLA-based plant management contracts to improve operational efficiency and reduce legacy union-related issues

Karan Adani summarised the strategic reset candidly, stating that the company acknowledges it has not delivered on earlier commitments to shareholders, and that the revised guidance reflects what is fully within management's control to execute. He outlined five key internal KPIs: discipline on L1 plants delivering to respective markets, trade versus non-trade sales mix, raw material and energy consumption reduction, and strengthening the channel network.

Orient Cement Limited filed the transcript of its Q4 FY'26 earnings conference call under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, with the document uploaded on the company's official website at www.orientcement.com . The filing, dated May 10, 2026, was addressed to both BSE Limited and the National Stock Exchange of India Limited, and was executed by Pranjali Dubey, Company Secretary and Compliance Officer. The call, held on May 04, 2026, covered the audited financial results for the quarter and financial year ended March 31, 2026, and was hosted by JM Financial Institutional Securities Limited. The earnings call was a joint session covering Ambuja Cements, ACC Ltd, and Orient Cement, with Orient Cement currently under process of amalgamation with Ambuja Cements as part of the One Cement platform initiative.

Ambuja Consolidated: Record Annual Performance

Vinod Bahety, Chief Executive Officer of Ambuja Cements, opened the call by highlighting FY'26 as a year of resilience for the Indian cement sector, marked by industry consolidation, GST 2.0 reforms, adverse weather conditions, global geopolitical factors, and state elections. Against this backdrop, Ambuja delivered its highest-ever annual sales volume. Key consolidated financial highlights for FY'26 are presented below:

The company added 10.7 million tonnes of new grinding capacity during the year at locations including Marwar, Farakka, Sankrail, Sindri, and Krishnapatnam, along with additional clinker capacity of 7 million tonnes at Jodhpur and Bhatapara. The company remains debt-free with the highest credit rating. Trade sales volume grew 10% for the year, while premium cement accounted for 35% of trade sales, reflecting sustained progress on premiumization.

Cost Structure and Q4 Pressures

The Q4 FY'26 quarter saw cost pressures emerge from multiple fronts. Management acknowledged that the full-year cost of ₹4,400 per tonne was approximately 10% higher than the company's own target, with the March quarter cost settling at ₹4,500 per tonne. Key cost drivers and the Q4 cost breakdown are outlined below:

Management attributed the elevated costs to higher freight costs due to increased sale lead distances, additional goods tax in states like Himachal Pradesh, higher packing costs from the West Asia conflict, elevated fuel and heat consumption (particularly at acquired assets), higher branding and sales promotion costs linked to the trade sales push, and higher repairs and maintenance expenditure at Penna and Sanghi plants. Bahety noted that the acquired assets of Sanghi and Penna continued to operate below desired efficiency levels, with Sanghi at approximately 57% cement capacity utilization and Penna at approximately 46%.

Capacity Utilization and Integration Status

Management provided utilization targets for FY'27 across the portfolio, with Orient Cement noted as operating at full capacity. The amalgamation of Sanghi Industries and Penna Cement with Ambuja Cements has been completed, while ACC and Orient Cement amalgamations are under process.

Karan Adani, Director – Ambuja Cements, acknowledged that the company's capex execution had not met its own standards, citing incorrect contractor selection, delayed team formation post-acquisition, and projects initiated without complete engineering. He confirmed that the company would complete all ongoing projects before commencing new ones.

FY'27 Outlook: Cost Reduction and Capacity Plans

Management outlined a focused roadmap for FY'27, centered on cost reduction, operational stabilization, and disciplined capital allocation. Key forward-looking operational parameters are as follows:

Bahety indicated that Q1 FY'27 costs are expected to remain flattish at approximately ₹4,500 per tonne, with reductions accelerating through subsequent quarters to achieve the full-year average reduction of ₹250 per tonne. Karan Adani confirmed that the INR250 per tonne reduction over each of the next two years is the minimum commitment, and that the earlier long-term cost target of ₹3,650 per tonne has not been abandoned — only the timeline has been extended. The company's capacity expansion timeline for the 155 million tonne target has been revised to approximately FY'30, from earlier projections.

Filing and Compliance Details

The regulatory submission details for the transcript filing are as follows:

The transcript filing follows the earlier submission of the investor presentation titled 'Operational & Financial Highlights' and the audio recording of the analysts/investors call, both filed on May 04, 2026. Together, these disclosures form part of Orient Cement's ongoing compliance with regulatory disclosure requirements, ensuring timely dissemination of material information to investors and market participants.