We are submitting the transcript of earnings call held on May 04, 2026, for the Audited Financial Results of the Company for the quarter and year ended March 31, 2026.
AMBUJACEM · price
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Ambuja Cements reported its highest ever annual volume of 73.7 million tonnes, up 16% YoY, with EBITDA of INR6,539 crores (up 31%) and PAT of INR2,647 crores (up 17%). However, cost came in higher at INR4,500/tonne in Q4 (vs target of INR4,000) due to packaging costs from the West Asia conflict, higher freight, branding costs, and lower utilization at acquired assets (Sanghi at 57%, Penna at 46%). Management guided FY27 volume growth of ~8% to 80 million tonnes against an industry growth expectation of 5-5.5%, with a cost reduction target of INR250/tonne each in FY27 and FY28. Karan Adani acknowledged underperformance and announced a strategic reset, emphasizing disciplined capex and organic growth over the next 2 years, with focus on stabilizing Penna and Sanghi before pursuing further expansion.
The higher-than-expected cost and muted Q4 performance led management to lower FY27 guidance and recalibrate expansion plans from 155 million tonnes to a more gradual approach. The focus on internal execution over external factors signals a shift toward operational discipline, which could support margins if cost targets are met.