According to reports from The Economic Times, Ambuja Cements delivered exceptional financial results for Q4FY26, with consolidated net profit surging 78.5% year-on-year to ₹1,830 crore compared to ₹1,025 crore in the corresponding quarter of the previous financial year. The profit is attributable to the owners of the parent company, demonstrating strong operational performance during the quarter. However, the company missed Street expectations on revenue in FY26, as consolidated revenue from operations of ₹40,446.04 crore fell short of the consensus estimate of ₹41,361.71 crore of 40 analysts polled by Bloomberg. As reported by The Economic Times, the company's revenue from operations in Q4FY26 stood at ₹10,892 crore, up 10% from ₹9,894 crore in the corresponding quarter of the previous financial year. The profit also surged sharply on a sequential basis, with profit after tax (PAT) jumping 664% compared to ₹240 crore in the October-December quarter of FY26.
As reported by CNBC TV18, the company achieved record quarterly revenue of ₹10,915 crore, marking a 9% increase from the previous year. The company also reported its highest-ever quarterly sales volume at 19.9 million tonnes, up 10% year-on-year, indicating robust demand for cement products and effective pricing strategies. According to The Economic Times, the company's revenue from operations in Q4FY26 stood at ₹10,892 crore, up 10% from ₹9,894 crore in the corresponding quarter of the previous financial year. However, the company faced significant operational challenges, with newly added plants, particularly Sanghi and Penna, showing lower utilization at 57% and 46% cement capacity respectively for the full year, as reported by The Economic Times.
Despite strong top-line growth, Ambuja Cements faced significant margin compression during the quarter. As reported by CNBC TV18, EBITDA declined 38.6% year-on-year to ₹646.5 crore, while margins contracted sharply to 9.3% from 16% a year ago. However, in its latest filing to the exchanges, the company reported operating EBITDA of ₹1,464 crore with a margin of 13.4%, showing sequential improvement from the previous quarter. According to The Economic Times, total expenses increased 19% to ₹37,910.76 crore in FY26 compared to FY25, with fuel costs rising up to 20% to ₹10,023.78 crore and freight costs increasing 14% to ₹9,497.28 crore. Management attributed the pressure to elevated costs including escalation linked to the West Asia conflict, GST-related changes and state elections, as reported by The Economic Times. The company noted that cost pressures from fuel, diesel, packaging bag supply constraints, and rupee depreciation impacted this quarter and impact expected to continue in H1 FY27.
According to The Economic Times, Ajay Kapur, managing director of Ambuja Cements, superannuated effective 31 January 2026 and was succeeded by Vinod Bahety. Promoter Karan Adani signalled a sharp focus on cost discipline and execution capability, stating that "80% of the reset is to do with the cost and we really need to get our act in order" to reduce costs. As reported by The Economic Times, Adani emphasized that "Till the time we are not able to deliver on what we are promising, it does not make sense to make more capital investment", effectively deferring parts of earlier expansion timeline and prioritizing stabilization of existing assets. The reset comes after the company admitted it underestimated the challenge of building the right team and execution capability post-acquisition of Ambuja and ACC in September 2022.
Despite strong quarterly results, Ambuja Cements shares fell as much as 2.5% to their day's low of ₹439.55 on the BSE on Tuesday, suggesting muted market reaction despite robust earnings. As reported by The Economic Times, Nomura has maintained a Buy rating on Ambuja Cements shares with a target price of ₹540, an upside of over 21% from current levels. The brokerage noted that costs remained elevated in the March quarter, driven by higher spending on branding and advertising, along with increased repairs and maintenance linked to breakdowns in acquired assets. Management is aiming to reduce overall costs by ₹250 per tonne in FY27, from the Q4FY26 peak of around ₹4,500 per tonne, with savings of ₹150–200 per tonne expected from raw materials, supported by higher use of fly ash and green energy initiatives. The company expects industry demand at 5% for FY27, citing geopolitical challenges and early forecast of below-normal monsoon, while maintaining focus on stabilizing new capacities and improving asset utilization.
