Ambuja Cements Limited , part of the diversified Adani Portfolio, has reported a robust performance for the second quarter, highlighted by record-breaking cement sales volume and an increased capacity target for FY28. The company has also expressed confidence in achieving double-digit revenue growth and maintaining four-digit PMT EBITDA performance.

Revised Capacity Target

Ambuja Cements has raised its FY28 capacity goal to 155 MTPA from the previous target of 140 MTPA. The company plans to achieve this additional capacity through various initiatives, including debottlenecking efforts.

Record-Breaking Volume

The company achieved its highest cement sales volume for a Q2 period at 16.6 million tonnes, marking a significant 20% increase compared to the same quarter last year. This volume growth was approximately five times the industry average, underscoring Ambuja Cements' strong market position.

Financial Highlights

Operational Achievements

Ambuja Cements has made significant strides in operational efficiency and capacity expansion:

• The company has increased its FY28 target capacity to 155 MTPA, up by 15 MTPA from the earlier target of 140 MTPA.
• This additional capacity will be achieved through debottlenecking initiatives at a lower capex of USD 48 per MT.
• Plant logistics infrastructure improvements are expected to boost existing capacity utilization by 3% over the next 24 months.
• A new 4 MTPA kiln line at Bhatapara (Chhattisgarh) has begun trial runs.
• The company commissioned 200 MW of solar power, increasing its renewable energy capacity to 673 MW.

Strategic Initiatives

Ambuja Cements has launched several strategic initiatives to enhance its competitive edge:

• Introduction of the Cement Intelligent Network Operations Centre (CiNOC) to integrate AI deeply into operations.
• Strategic partnerships with CONCOR and CREDAI, along with engagements with over 400 academic institutions through the Adani Cement FutureX program.
• Ordered seven vessels with a total capacity of 65,800 Deadweight Tonnage (DWT) to increase sea logistics share to 5%.

Management Commentary

Mr. Vinod Bahety, Whole Time Director & CEO of Ambuja Cements, stated, "This quarter has been noteworthy for the cement industry. Despite headwinds from prolonged monsoons, the sector will benefit from several favorable developments including GST 2.0 reforms, the Carbon Credit Trading Scheme (CCTS), and the withdrawal of coal cess."

He added, "Our capacity expansion is well-timed to capitalize on this positive momentum. We remain optimistic about delivering double-digit revenue growth and four-digit PMT EBITDA."

Future Outlook

Ambuja Cements maintains a positive outlook for the remainder of the fiscal year, targeting:

• Double-digit revenue growth
• Four-digit PMT EBITDA
• Total cost reduction to ₹4,000.00 PMT by fiscal year exit
• Further cost reduction of 5% year-over-year for the next two years, aiming to achieve a cost target of ₹3,650.00 PMT by FY28

The company's strategic initiatives and capacity expansion plans position it well to capitalize on the expected growth in cement demand, which is estimated at 7-8% annually. Ambuja Cements expresses confidence in its ability to achieve these financial targets and maintain its strong market position.

Ambuja Cements Limited , a major player in the Indian cement industry, has announced its intention to seek shareholder approval for material related party transactions (RPTs) with its subsidiary Penna Cement Industries Limited (PCIL) and between PCIL and ACC Limited for the financial year 2025-26.

Proposed Transactions

The company has issued a postal ballot notice outlining two key resolutions:

1. Approval for RPTs between Ambuja Cements and PCIL, valued at ₹1,500 crore.
2. Approval for RPTs between PCIL and ACC Limited, valued at ₹2,800 crore.

These transactions encompass a wide range of activities, including:

• Purchase and sale of cement, clinker, and raw materials
• Exchange of spare parts and power
• Provision of various services

Rationale Behind the Transactions

The proposed RPTs are aimed at leveraging synergies within the group following Ambuja's acquisition of PCIL in August 2024. Key benefits include:

• Expanded network and strengthened market presence
• Improved supply chain efficiency and geographical reach
• Enhanced customer service and market competitiveness
• Optimized logistics and better asset utilization

Capacity Utilization Improvement

Since Ambuja's acquisition, PCIL has seen significant improvements in its operational efficiency:

Approval Process and Timeline

The e-voting period for shareholders to cast their votes on these resolutions is scheduled as follows:

• Start Date: October 31, 2025
• End Date: November 29, 2025

The Audit Committee and Board of Directors have already approved these transactions, which are stated to be conducted at arm's length and in the ordinary course of business.

Compliance and Transparency

In line with regulatory requirements, Ambuja Cements has provided detailed information about the proposed transactions, including their nature, value, and justification. The company has also obtained an arm's length opinion from an independent external firm to ensure compliance with regulatory standards.

As the cement industry continues to grow, driven by infrastructure development and urbanization, these strategic transactions are positioned to enhance Ambuja Cements' operational flexibility and market responsiveness. Shareholders will play a crucial role in determining the approval of these significant related party transactions, which could shape the company's operational dynamics in the coming financial year.