According to reports from The Economic Times, UltraTech and Ambuja earned almost identical EBITDA per tonne of ₹1,090 and ₹1,103 respectively in FY24. However, by the June 2026 quarter, UltraTech had pulled ahead significantly, earning ₹283 more per tonne than Ambuja. This divergence stems from fundamental operational differences in energy costs, freight management, plant utilisation, and depreciation expenses.
As reported by The Economic Times, both companies expanded through strategic acquisitions between 2023 and 2025. Ambuja acquired Sanghi Industries, Penna Cement, and a stake in Orient Cement, while UltraTech purchased India Cements and Kesoram's cement business. While these acquisitions brought additional capacity, manufacturing locations, and distribution reach, they also introduced plants requiring integration and efficient operation. In FY24, both companies experienced margin compression with Ambuja's EBITDA per tonne falling to ₹940 and UltraTech's dropping to ₹925 as cement prices softened and new plants added operational strain.
According to The Economic Times, the primary cost differentiation lies in energy and freight expenses. Between FY24 and FY26, UltraTech reduced its power-and-fuel costs by ₹248 per tonne (from ₹1,536 to ₹1,288), while Ambuja's costs decreased by only ₹34 per tonne (from ₹1,394 to ₹1,360). In freight costs, UltraTech's expenses fell by ₹87 per tonne (from ₹1,468 to ₹1,381), while Ambuja's rose by ₹129 per tonne (from ₹1,175 to ₹1,304). UltraTech's larger network serves customers from plants closer to demand centres, providing more efficient transportation routes.
As reported by The Economic Times, capacity utilisation has become a critical differentiator between the two companies. UltraTech's plants operated at 79% utilisation in FY26 compared to Ambuja's 70%, with the gap widening to 81% against 65% by Q1 FY27. UltraTech's capacity utilisation improved from 85% in FY24 to 81% in FY26, while Ambuja's declined from 79% in FY24 to 70% in FY26. UltraTech's larger base provides more room to absorb new plants' early inefficiencies, while Ambuja's Penna and Sanghi assets continue working through operational challenges.
According to The Economic Times, depreciation expenses significantly impact the profitability gap between the companies. In FY26, UltraTech's depreciation per tonne of capacity was ₹241 compared to Ambuja's ₹341, while UltraTech's depreciation per tonne sold was ₹305 versus Ambuja's ₹484. UltraTech's EBITDA margins improved from 11.2% in FY25 to 14% in FY26, while Ambuja's remained around 7.3%. UltraTech's sales volume grew from 119 million tonnes in FY24 to 152.1 million tonnes in FY26, significantly outpacing Ambuja's growth from 58 million tonnes to 73.7 million tonnes.
