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.

Ambuja Cements Limited has confirmed that there were no deviations or variations in the use of proceeds from its preferential issue of equity shares for the quarter ended September 30, 2025. The company had raised a total of Rs 15,000.05 crores through a two-tranche preferential issue earlier in 2024.

Preferential Issue Details

Fund Allocation

The raised funds were allocated for various purposes, including:

• Capital expenditures
• De-bottlenecking capital expenditure
• Logistics infrastructure
• Digitizing logistics
• Optimizing plants for ESG compliance
• Acquisitions
• Consolidation
• Working capital requirements
• Technology investment
• General corporate purposes

Utilization of Funds

As of June 30, 2025, Ambuja Cements had utilized Rs 14,795.10 crores of the total funds raised. During the quarter ended September 30, 2025, no additional amount was utilized from the preferential issue proceeds.

Audit Committee Review

The statement regarding the use of preferential issue proceeds was reviewed by the company's Audit Committee, ensuring transparency and compliance with regulatory requirements.

This report demonstrates Ambuja Cements' commitment to transparent financial practices and adherence to its stated objectives for fund utilization. The company's strategic allocation of funds across various areas suggests a focus on enhancing operational efficiency, technological advancement, and sustainable growth.