Ambuja Cements Raises FY28 Capacity Target to 155 MTPA, Reports Record Q2 Volume and Targets Double-Digit Growth

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

Metric	Value	Change
Quarterly revenue	₹9,174.00 crore	Up 21% YoY
EBITDA per tonne	₹1,060.00	Up 32% YoY
Total EBITDA	₹1,761.00 crore	Up 58% YoY
EBITDA margin	19.20%	Up 4.5 percentage points
Profit After Tax (PAT)	₹2,302.00 crore	Up 364% YoY

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.09%	+3.03%	+0.18%	+6.61%	+1.02%	+120.31%

Ambuja Cements Limited , a leading player in the Indian cement industry, has reported strong financial results for the September quarter, showcasing significant revenue growth and an ambitious capacity expansion plan.

Financial Highlights

Revenue

The company's consolidated revenue increased by 22% to ₹9,175.00 crore from ₹7,552.00 crore in the same period last year, marking Ambuja Cements' highest-ever Q2 topline.

Net Profit

Consolidated net profit surged to ₹1,766.00 crore, significantly higher than ₹480.00 crore in the corresponding quarter of the previous year. This substantial increase was primarily aided by a tax write-back of ₹1,465.00 crore.

Strategic Initiatives

Capacity Expansion

Ambuja Cements has raised its FY28 capacity target by 15 MTPA to 155 MTPA from the earlier goal of 140 MTPA. This expansion is planned through debottlenecking at a cost of $48 per tonne.

Product Mix Optimization

The company plans to install 13 blenders across its plants over the next 12 months. This initiative aims to optimize the product mix and enhance the share of premium cement in its portfolio.

Cost Reduction Targets

Ambuja Cements has set ambitious cost reduction targets:

The company aims to end FY26 with a total cost of ₹4,000.00 per tonne.
It expects a 5% annual reduction over two years to reach ₹3,650.00 per tonne by FY28.

Management Outlook

CEO Vinod Bahety expressed optimism about the company's future performance. He stated that Ambuja Cements expects to deliver double-digit revenue growth and four-digit PMT EBITDA for the remainder of FY26.

Market Response

Following the announcement of these results, Ambuja Cements' shares traded 1.4% higher at ₹573.20.

The strong financial performance, coupled with ambitious expansion and cost reduction plans, indicates Ambuja Cements' commitment to strengthening its market position and enhancing shareholder value in the coming years.