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AMBUJACEMENTS Manufacturing 15 May 2026

Ambuja Cements Ltd — Q4 FY26

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).

bearish high
Revenue ₹10,915 Cr
EBITDA —
PAT ₹1,857 Cr
EBITDA Margin —
Duration 81 min

✓ Verified against BSE filing

2-Min Summary

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.

Key Numbers

Annual Sales Volume 73.7M tons
+16% YoY

Highest ever annual volume, growing ahead of industry.

EBITDA per ton ₹887
+12% YoY

Normalized EBITDA/ton improved but missed internal targets.

Premium Cement Share of Trade 36%
+1pp QoQ

Premium mix sustained at 36% in Q4, supporting realizations.

Green Power Share 32%
+6pp YoY

Green power share increased to 32% in Q4 from 26% last year.

Management Guidance

G

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.

growth
G

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.

margins
G

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.

capex
G

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.

expansion

Key Risks

R

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.

high · management_commentary
R

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.

high · analyst_question
R

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.

medium · management_commentary
R

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.

medium · data_observation

Notable Quotes

We are not moving away from the target, yes we are moving away from the timeline.
Karan Bajwa · CEO
4500 is the peak and this 250 reduction is from here.
Vinod Kothari · CFO
Our performance has not been great. We've not been able to deliver what we have promised to our shareholders.
Karan Bajwa · CEO