ACC vs Ambuja Cements Q4 FY26

AC

ACC

Q4 FY26 · Diversified

Ambuja Cement reported a disappointing Q4 FY26 with cost per tonne hitting ₹4,500, well above the earlier target of ₹4,000. Full-year EBITDA per tonne was ₹887, up 12% YoY, but Q4 saw significant cost inflation from packaging, fuel, and higher repairs at acquired assets (Sanghi at 57% utilization, Penna at 46%). Management admitted a 3-6 month delay in efficiency capex and guided for only ₹250/tonne cost reduction in FY27, implying average cost of ~₹4,250. Volume guidance of 80 million tonnes (8% growth) relies on stabilizing acquired assets and commissioning 10mt new capacity, but industry demand is expected to grow only 5-5.5%. Capex is being recalibrated to ₹6,000-6,500 crore for FY27, with a reset in ambition and timeline for the 140mt capacity target. Key risk: inability to pass on cost increases due to soft demand, further pressuring margins.

Guidance read

FY27 volume target of 80 million tonnes: Management expects 8% volume growth to ~80mt, driven by stabilization of acquired assets and new capacity commissioning. Cost reduction of ₹250/tonne in FY27: Targeting average cost reduction of ₹250/tonne in FY27 from Q4 FY26 exit cost of ₹4,500, implying ~₹4,250 average. Capex of ₹6,000-6,500 crore for FY27: Capital expenditure guided at ₹6,000-6,500 crore, with focus on completing ongoing projects and debottlenecking. Capacity to reach 119 million tonnes by FY27 end: Cement capacity expected to increase to 119mt by end of FY27, including 10mt of new grinding capacity.

Risk read

Key risks include Cost inflation from global factors — West Asia war led to packaging cost spikes and fuel cost increases, adding ~₹250/tonne in Q4; further escalation could derail cost reduction targets.; Soft demand limiting price hikes — Management noted demand is soft and price increases of only ₹10-15/bag have been achieved, insufficient to offset cost inflation.; Execution delays in efficiency capex — Management admitted 3-6 month delays in efficiency projects, which could push cost savings beyond FY27.; Acquired asset underperformance — Sanghi and Penna plants have low utilization (57% and 46%) and higher maintenance costs, impacting overall margins..

Promise ledger

Scorecard data is being built as historical quarters are processed.

AM

Ambuja Cements

Q4 FY26 · Manufacturing

Ambuja Cements reported a disappointing Q4 FY26 with cost per ton surging to ₹4,500, well above the earlier target of ₹4,100, driven by higher freight, packing costs from the West Asia crisis, and elevated repairs at acquired assets (Sanghi, Penna). Annual sales volume hit a record 73.7 million tons (+16% YoY), but EBITDA per ton at ₹887 missed expectations. Management admitted to execution failures, resetting capacity expansion timelines and guiding for only 8% volume growth in FY27 to ~80 million tons, below industry growth of 5-5.5%. Cost reduction of ₹250/ton is targeted for FY27, but Q1 is expected to remain flat at elevated levels. The key risk is that pricing power remains weak, with only ₹10/bag improvement, and cost inflation may persist if global energy prices stay high.

Guidance read

FY27 volume target of ~80 million tons: Management expects 8% volume growth to ~80 million tons in FY27, driven by stabilization of acquired assets and new capacities. Cost reduction of ₹250/ton in FY27: Targeting ₹250/ton reduction in average cost from Q4 FY26 exit of ₹4,500/ton, reaching ~₹4,250/ton for FY27. Capex of ₹6,000-6,500 crore for FY27: Capital expenditure for FY27 estimated at ₹6,000-6,500 crore, focused on completing ongoing projects and debottlenecking. Capacity to reach 119 million tons by end FY27: Cement capacity expected to increase to 119 million tons by end of FY27, including 10 million tons of new grinding units.

Risk read

Key risks include Cost inflation from West Asia crisis — Packing bag costs and fuel prices surged in March due to geopolitical tensions, adding ~₹250/ton to costs. Further escalation could delay cost reduction targets.; Weak pricing power amid soft demand — Despite cost inflation, cement prices have only increased by ₹10-15/bag in select pockets. Management expects subdued demand in April-May, limiting ability to pass on costs.; Execution delays in capacity expansion — Projects have been delayed due to contractor issues, incomplete engineering, and lack of team bandwidth. Management has reset timelines, but further slippages could impact volume growth.; Higher-than-expected costs at acquired assets — Sanghi and Penna plants have lower utilization (57% and 46% respectively) and higher maintenance costs. Turnaround has taken longer than anticipated, weighing on overall margins..

Promise ledger

Scorecard data is being built as historical quarters are processed.