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.

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.