SANGHI Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
ConCallIQ research layer
Signal, with the source still visible.
Use the controls below to narrow the view, then follow the evidence into the next layer of context.
Revenue
₹10,277 Cr
verification pending
Revenue YoY
20%
reported change
EBITDA
₹1,353 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Ambuja Cement reported strong Q3 FY26 results with 20% YoY revenue growth to ₹10,277 crores and PAT growth of 28% to ₹378 crores on normalized basis (58% YoY). Volume growth of 17% YoY to 18.9 million tons significantly outperformed industry, with market share expanding to 16.6%. Premium cement contributed 35% of trade sales, up 31% YoY. The acquired assets (Sanghi, Penna, Orient) showed meaningful utilization improvement to 65% exit utilization with target of 80%. Cost per ton was ₹4,500 for the quarter with December exit below ₹4,000, reflecting one-time maintenance and brand transition expenses. The company commissioned a 2.4MT grinding unit ahead of schedule, taking total capacity to 109 million tons. Management targets ₹3,650/ton cost by March 2028 with capacity expansion to 155MT. Key risk remains southern and central region pricing pressure, delayed synergy capture from acquired assets, and execution challenges on the expansion roadmap amid volatile input costs.
Colored figures show movement against the previous available record.
Guidance to track
- Company targets cost reduction from current ~₹4,500/ton to ₹3,800 by March 2027 and ₹3,650 by March 2028, driven by green power consumption, new efficient assets, and logistics optimization. December exit already below ₹4,000.
- Exit FY26 at 115MT (net after mothballing 2 old units), FY27 target ~135MT, FY28 target 155MT. Includes 24MT grinding capacity through debottlenecking and BCTs at lower capex. Assam greenfield (4MT) expected in 18-24 months.
- Power consumption can reduce by 10-12 units/ton with high visibility. Target power cost from ₹6.1/unit to ₹4.5/unit by FY28. 898MW renewable operational, benefits flowing as new capacities ramp up.
- Cement industry expected to close FY26 with ~8% demand growth (1.1x GDP). Company expects double-digit volume growth for leading players in Q4 and sustained 8% industry growth trajectory.
Risks flagged
- Management acknowledged that South and Central regions remain vulnerable to competitive intensity. While North and West clusters are stronger, center markets saw aggressive pricing that compressed realizations. Price increases of ₹15-20/bag in South and ₹5-10/bag in North need sustained execution.
- Sanghi continues operating below optimal utilization (~65% cement, 80% clinker in December) despite being acquired over 2 years ago. Equipment failures, transmission infrastructure issues, and seasonal disruptions (flooding, storms) have hampered ramp-up. Full synergy capture delayed beyond initial guidance.
- Power cost at ₹6.1/unit remains higher than peers. While new grinding units (8MT) and clinker lines (Bhatapara, Marwaha, Penna) are being commissioned, ramp-up costs and lower initial utilization could keep cost elevated. Management acknowledged ~₹150/ton one-time costs in Q3.
- Company is deliberately foregoing lower-margin non-trade volume to improve trade mix (targeting 70:30 from current 65:35). While this improves realizations, it may constrain absolute volume growth and market share gains in competitive markets where peers pursue volume-first strategies.
Key quotes
- We delivered industry-leading performance, growing our volumes at two times the industry average. This was supported by stronger market execution, improved availability across both trade and non-trade channels and higher base capacity utilization.
- December exit is phenomenally below 4,000 [rupees per ton]. The EBITDA performance was supported by year-on-year 2% cost improvement. Kiln cost declined 6%, power cost reduced 15% and green power share increased to 37%.
- Our focus will be to regain the leadership position of Adani cement on the trade side on back of the strong brand equity. Premium cement volumes accounted for 35% of the trade sales and in absolute terms it increased 31% compared to last year, amongst the highest in the industry.
Research modules