According to reports from The Economic Times, Ambuja Cements announced robust March quarter earnings with consolidated net profit rising over 37% year-on-year to ₹1,857.4 crore. The significant growth was primarily attributed to a substantial tax credit of ₹1,329.3 crore. The company achieved record-breaking operational metrics during the quarter, with sales volume reaching an all-time high of ₹19.9 million tonne, representing a 10% increase year-on-year. Revenue also rose 9% year-on-year to an all-time high of ₹10,915 crore, demonstrating strong demand across the cement sector. Sequential growth remained robust with EBITDA improving from ₹1,353 crore in Q3 to ₹1,464 crore in Q4, marking an 8% increase. EBITDA per tonne also rose to ₹735 from ₹718 in the previous quarter, indicating improved operational efficiency.
As reported by The Economic Times, Ambuja Cements faced significant cost pressures during the quarter that impacted overall performance. The company stated that cost pressures from fuel, diesel, packaging bag supply constraints, and rupee depreciation impacted this quarter. Management indicated that these challenges are expected to persist into the first half of FY27, suggesting ongoing operational headwinds in the near term. The company faced cost headwinds from increased power, fuel, logistics, and packaging expenses during the quarter, which weighed on profitability compared to the previous year. However, normalised profit stood at ₹569 crore in Q4 FY26, compared to ₹414 crore in Q3 and ₹856 crore in Q4 FY25, indicating underlying operational strength. The difference between reported and normalised profit was largely due to deferred tax credits from mergers, highlighting the importance of adjusted performance metrics for investors.
According to latest market data, Ambuja Cements stock has risen 42% in just five sessions, showing strong investor interest in the cement sector. The stock's performance reflects strong investor confidence in the company's operational metrics and growth trajectory. The significant stock movement comes despite the mixed quarterly results, with investors focusing on the company's record-breaking operational performance and improved sequential growth. The rally demonstrates market optimism about the cement sector's prospects and Ambuja Cements' position within it, with the stock benefiting from broader sectoral strength in infrastructure-linked companies.
For the full year FY26, Ambuja Cements reported revenue of ₹40,656 crore, up 15% year-on-year, while net profit rose to ₹5,637 crore. Cement volumes for the year grew 16% to 73.7 million tonnes, reflecting strong operational momentum and expanded capacity utilisation. The company's performance reflects steady demand conditions, though margin pressures from input costs continue to impact earnings quality. Earnings per share rose to ₹7.37 from ₹0.97 in the previous quarter and ₹4.16 a year ago, indicating strong sequential improvement despite cost challenges.
