Ambuja Cement’s operating EBITDA rose 8.5% to Rs 1,589 crore in Q1FY27, but sales and profits declined. Amid seasonal challenges, the company’s revenue stood at Rs 9,500 crore and net profit at Rs 660 crore.
New Delhi [भारत]July 28 (ANI): Ambuja Cement’s operating EBITDA rose 8.5 per cent quarter-on-quarter to Rs 1,589 crore in the first quarter of fiscal 2027 (Q1FY27). The increase was driven by value-led growth, focus on premium products and cost reduction. However, cement sales and profits declined amid a seasonally challenging quarter and geopolitical tensions.
Margin improvement by reducing costs
The company’s operating EBITDA margin expanded 331 basis points quarter-on-quarter to 16.7 per cent, while EBITDA per tonne increased 27 per cent to Rs 931 from Rs 735 in Q4FY26. Ambuja said it has achieved cost reduction of Rs 206 per tonne on a quarterly basis, helped by operational efficiency, improved energy efficiency, low clinker factor and disciplined cost management.
Decline in sales, revenue and profits
Consolidated cement sales volume during Q1FY27 stood at 17.1 million tonnes (MnT) as against 19.9 MnT in the previous quarter and 18.4 MnT in Q1 FY26. Revenue from operations declined to Rs 9,500 crore from Rs 10,916 crore in Q4 FY26 and Rs 10,289 crore a year ago. Profit after tax (PAT) stood at Rs 660 crore, up from Rs 1,857 crore in Q4 FY26 and Rs 1,041 crore in Q1 FY26. Diluted earnings per share (EPS) stood at Rs 2.32, compared to Rs 7.37 in the previous quarter and Rs 3.53 in the same period last year.
Focus on market mix and premium products
The company said the focus on high-value segments has strengthened the market mix. The share of trade sales increased 4 percentage points year-on-year to 78 percent, while premium products accounted for 34 percent of trade sales, up one percentage point year-on-year.
Green Energy and Capacity Expansion
Ambuja also continued to strengthen its green energy footprint and increased renewable energy capacity by 75 MW to 973 MW. The share of green power increased to 34 per cent, compared to 32 per cent in Q4 FY26 and 28 per cent in Q1 FY26. The company’s cement capacity as of June 30, 2026 was 109 MTPA, and aims to reach 119 MTPA by the end of FY27, with several new facilities undergoing trial production.
Industry Outlook
Ambuja said the cement industry faced expensive imported fuel and logistics costs in the quarter due to geopolitical tensions in West Asia. The company expects cement demand to grow by around 5 per cent in FY27, while the long-term outlook remains constructive, supported by infrastructure, urbanization and housing demand. (ANI)
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