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.
ORIENTCEM · price
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Ambuja Cements (consolidating Orient Cement, ACC, Sanghi, Penna) reported FY '26 volume of 73.7 million tonnes, up 16% Y-o-Y with EBITDA of INR6,539 crores (INR887/tonne). However, Q4 costs spiked to INR4,500/tonne—significantly above the targeted INR4,000—due to acquired asset inefficiencies, higher freight costs, branding investments, and the West Asia conflict impacting packing costs. Orient Cement operates at full capacity, but Sanghi (57% utilization) and Penna (46%) underperform. Management guided FY '27 volumes at 80 million tonnes (8% growth vs industry expectation of 5-5.5%), with INR6,000-6,500 crore capex. They committed to INR250/tonne cost reduction annually for next 2 years but acknowledged challenges in meeting the earlier INR3,650/tonne target. Pricing remains under pressure despite cost inflation of INR400-500/tonne.
The company's cost miss and margin pressure may concern investors, though volume guidance above industry suggests market share gains. Focus on stabilizing acquired assets (Sanghi, Penna) and premium mix (36% of trade) will be key watchpoints. The capacity target of 119 million tonnes by FY '27 end remains intact.