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.

The National Company Law Tribunal (NCLT) Ahmedabad has set the stage for a significant corporate action in the cement industry. Ambuja Cements Limited has been directed to convene a meeting of its equity shareholders to consider the proposed amalgamation with Penna Cement Industries Limited. This development marks a crucial step in the merger process between the two cement manufacturers.

Key Details of the Shareholder Meeting

Merger Specifics

The amalgamation scheme involves Penna Cement (transferor company) merging with Ambuja Cements (transferee company). This move comes after Ambuja Cements acquired 99.94% of Penna Cement's paid-up equity share capital, signaling a strategic expansion in the cement sector.

NCLT's Decisions

The NCLT has made several key decisions to facilitate the merger process:

1. Dispensed with meetings for various stakeholder categories of both companies.
2. Waived the requirement for a meeting of Penna Cement's equity shareholders, citing consent affidavits from 99.96% of shareholders.
3. Exempted unsecured creditors of both companies from meetings, as the scheme offers no compromise and leaves liabilities unchanged.

Financial Position of Companies

As of June 30, 2025, both companies demonstrated a strong financial standing:

Recent Disclosure

On November 2, 2025, Ambuja Cements Limited made a disclosure to the stock exchanges regarding the NCLT order. The company confirmed that it would hold the shareholder meeting as directed and that all relevant documents would be available on their official website.

This merger represents a significant consolidation in the Indian cement industry. Shareholders of Ambuja Cements will play a crucial role in determining the future of this proposed amalgamation, which could potentially reshape the competitive landscape of the sector.

As the December 30 meeting approaches, industry observers and stakeholders will be keenly watching for the outcome of this important corporate action.