Ambuja Cements , one of India's leading cement manufacturers, has reported a stellar performance for the first quarter, with record revenue and significant improvements in key financial metrics. The company has also revised its cement demand growth estimates upward for the current fiscal year.

Record-Breaking Performance

Ambuja Cements achieved its highest quarterly revenue of ₹10,289.00 crores, marking a 23% year-on-year increase. This impressive growth was driven by record sales volume of 18.40 million tonnes, up 20% compared to the same period last year. The company's market share expanded to 15.50%, reflecting its strengthening position in the Indian cement industry.

Profitability Surge

The company reported its highest quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of ₹1,961.00 crores. EBITDA per tonne stood at ₹1,069.00, representing a substantial 28% year-on-year increase. The EBITDA margin improved to 19.10%, up 3.80 percentage points from the previous year.

Premium Product Growth and Cost Optimization

Ambuja Cements' focus on premium products has paid off, with these now constituting 33% of trade sales, up 43% year-on-year. This shift towards higher-value products supported a 4% price gain. The company also achieved cost improvements of ₹119.00 per metric tonne through optimization in power, fuel, and logistics.

Capacity Expansion and Integration

The company successfully integrated Orient Cement, which it acquired in April, and commissioned 5 million tonnes of grinding capacity. Ambuja Cements' current cement capacity stands at 104.50 million tonnes, with targets set at 118 million tonnes by FY26 and 140 million tonnes by FY28.

Strong Financial Position

Ambuja Cements maintains a debt-free status with a AAA credit rating. The company reported a cash position of approximately ₹3,000.00 crores, providing a solid foundation for future growth and investments.

Revised Demand Outlook

In a positive sign for the industry, Ambuja Cements has revised its cement demand growth estimates upward for the current fiscal year. The company now expects demand to grow by 7-8%, up from its previous estimate of 6-7%.

Management Commentary

Vinod Bahety, CEO of Ambuja Cements, commented on the results, saying, "We have reimagined business fundamentals. This has helped us achieve the highest revenue in a quarter, highest quarterly EBITDA and improve our market share by 2%. Our channel network is vibrant, our assets are more reliable, our efficiencies have improved, and our EBITDA gains are well noteworthy. This sets a bold tone for the year ahead as we scale with purpose and precision."

Future Outlook

With its strong performance, ongoing capacity expansion, and positive industry outlook, Ambuja Cements appears well-positioned for continued growth. The company's focus on premium products, cost optimization, and strategic acquisitions are likely to drive further improvements in profitability and market share in the coming quarters.

As the Indian construction and infrastructure sectors continue to grow, Ambuja Cements' upward revision of demand estimates suggests a positive outlook for the cement industry as a whole. Investors and industry observers will be keenly watching the company's progress towards its ambitious capacity expansion targets and its ability to maintain its strong financial performance in the face of evolving market dynamics.

Ambuja Cements Limited, a major player in the Indian cement industry, has announced the successful completion of its merger with Adani Cementation Limited. The amalgamation, which became effective on August 1, 2025, marks a significant milestone in the company's growth strategy and is expected to enhance its market presence.

Merger Details

The scheme of amalgamation, sanctioned by the National Company Law Tribunal (NCLT), Ahmedabad Bench on July 18, 2025, has fulfilled all specified conditions. As a result, Adani Cementation Limited has been amalgamated with Ambuja Cements Limited and subsequently dissolved without winding up. The appointed date for the scheme was set as April 1, 2024, indicating that the financial consolidation would be retrospectively applied from this date.

Regulatory Compliance

In a filing to the stock exchanges, Ambuja Cements Limited stated, "All the conditions to make the Scheme effective, as specified under the Scheme, have been fulfilled." The company has ensured transparency by promptly informing the National Stock Exchange of India, BSE Limited, and the Luxembourg Stock Exchange, where its securities are listed.

Corporate Governance

Manish Mistry, Company Secretary & Compliance Officer of Ambuja Cements Limited, signed off on the regulatory filing, demonstrating the company's commitment to proper corporate governance and timely disclosure of material information to its stakeholders.

Financial Reporting

Coinciding with the merger announcement, Ambuja Cements also disclosed that its Board of Directors approved the Unaudited Financial Results for the quarter ended June 30, 2025, in a meeting held on July 31, 2025. The company has published extracts of its Consolidated Unaudited Financial Results in the Financial Express newspaper, in both English and Gujarati editions, adhering to SEBI Listing Regulations.

Looking Ahead

The merger between Ambuja Cements and Adani Cementation is expected to create synergies and potentially strengthen Ambuja's position in the competitive cement market. Stakeholders will be keenly watching how this strategic move translates into operational efficiencies and financial performance in the coming quarters.

Investors and industry observers are advised to monitor future announcements and financial reports from Ambuja Cements Limited to assess the impact of this merger on the company's market share and profitability.