Ambuja Cements Posts Strong Q2 Growth Led by Premium Trade Mix
Cement major Ambuja Cements, part of the Adani Group, reported a solid second quarter for FY27 on Thursday. The company posted operating revenue of Rs 9,197 crore and operating EBITDA of Rs 1,271 crore. Its EBITDA margin stood at 13.8 per cent.
In a stock exchange disclosure, the company said it sold 16.5 million tonnes during the quarter. The trade business played a major role in sustaining this volume.
Trade volumes rose 8.6 per cent year on year. The share of trade sales increased by 6 percentage points to reach 74 per cent.
A notable trend was the rising contribution of premium products. These accounted for 37 per cent of trade sales, up 2 percentage points from a year earlier.
The company's EBITDA per tonne for the quarter was Rs 770, according to its regulatory filing.
Ambuja Cements also added 4.6 MTPA of new capacity during the quarter through projects at Dahej, Salai Banwan and Kalamboli. Work is underway to stabilise and expand 3.2 MTPA of additional capacity at Bathinda and Jodhpur Penna. The 2.4 MTPA Warisaliganj unit is expected to start in the second half of FY27.
Commenting on the results, Vinod Bahety, Whole-time Director and CEO, said the company's performance in the second quarter and first half of FY27 reflects its focus on quality growth. He said that despite seasonal and external challenges, a stronger trade business and a richer premium mix had improved revenue quality, while disciplined execution and cost control had helped lift profits.
Total cost per tonne came to Rs 4,182 during the quarter. Including the effect of geopolitical disruptions, it was Rs 4,410 per tonne. The company said elevated prices of petcoke and coal, higher diesel costs and rising packaging expenses had put pressure on industry margins.
Logistics costs increased slightly from last year. Still, a reduction in primary lead distance from 265 km to 254 km helped cushion the impact.
The company's balance sheet remains debt-free, with a net worth of Rs 72,238 crore and cash of Rs 1,070 crore. Its credit ratings from CRISIL, CARE Ratings, India Ratings and ICRA are at the highest level of AAA and A1+.