Ambuja Cements FY26 Results: Record 73.7 MnT Volume, Revenue ₹40,656 Cr, EBITDA Up 31%

Ambuja Cements delivered a record-setting FY26, driven by the strongest-ever annual volume and double-digit revenue growth. While cost pressures from petcoke, freight, and packaging weighed on per-tonne margins at certain points in the year, the company’s normalised EBITDA grew 31% YoY, reflecting genuine operating leverage from scale and integration. The Ambuja Cement share price closed 0.24% higher on May 4, 2026, as markets absorbed a broadly in-line set of results. 

Record Volume Drives Topline Expansion

Cement sales volume grew 16% year-on-year to 73.7 million tonnes (MnT) in FY26, the highest in the company’s history. This was well ahead of estimated industry demand growth of around 5–7% for the year, driven by a higher share of trade and premium products, infrastructure demand, and the integration of Sanghi and Penna Cement volumes.

Q4 FY26 also saw a record quarterly revenue of ₹10,915 crore, up 9% YoY, with EBITDA of ₹1,464 crore for the quarter.

Revenue and EBITDA: The Normalised Picture

Revenue from operations for FY26 rose 15% YoY to ₹40,656 crore. EBITDA came in at ₹6,539 crore (₹887 per tonne), up 31% on a normalised year-on-year basis.

The 31% normalised growth adjusts the FY25 base to include Sanghi and Penna Cement on a like-for-like basis, since these entities were consolidated into Ambuja during FY26. On an unadjusted reported basis, EBITDA growth was lower, but the normalised figure better reflects the operating improvement in the underlying business.

Reported PAT vs Normalised PAT

The company’s reported PAT for FY26 is ₹5,637 crore. However, Ambuja Cements separately disclosed a normalised PAT of ₹2,647 crore, which strips out exceptional gains arising from the Sanghi and Penna Cement amalgamations. Investors focused on recurring earnings quality should track the normalised figure.

Q4 FY26 standalone net profit rose 196% YoY to ₹1,644 crore, partly benefiting from a low base in Q4 FY25.

Cost Pressures: Petcoke, Freight, and Packaging

FY26 was not without its challenges on the cost front. Key input cost headwinds included the following:

• Imported petcoke prices rose sharply; April-loading offers reached $155–160/tonne, with fuel costs estimated to have risen by ₹72 per tonne in Q4 alone (Nomura estimates)
• Freight and logistics costs increased 3% year-over-year (YoY)
• Packaging and other expenses rose ~25% in Q4 YoY
• Rupee depreciation added to the cost of imported materials

To mitigate these pressures, Ambuja increased renewable energy usage, optimised its fuel mix, and improved logistics efficiency. In FY25, it had already reduced kiln fuel cost by 14% from ₹1.84 to ₹1.58 per Kcal, a base that FY26 cost pressures partially eroded.

Capacity Expansion: 109 MTPA and a Clear Path to 119 MTPA

Ambuja Cements ended FY26 with a total cement capacity of 109 MTPA, making it one of India’s two largest cement producers. The company is targeting ~119 MTPA by FY27.

• Capacity utilisation improved meaningfully YoY, supported by the Sanghi and Penna additions
• The company continues to deploy its AI-driven operational platform “CINCO” for efficiency and decision-making
• Digitalisation initiatives are supporting cost management and logistics optimisation across the expanded network

Consolidation: Reshaping Into One Cement Platform

FY26 was a landmark year for Ambuja’s consolidation strategy under the Adani Group:

• Sanghi Cement amalgamation completed — Sanghi delisted effective April 6, 2026
• Penna Cement amalgamation completed — effective April 10, 2026 post-NCLT Ahmedabad approval
• ACC and Orient Cement amalgamation underway — pending regulatory approvals

This “One Cement Platform” strategy is designed to eliminate inter-group competition, pool procurement, and improve overall capital efficiency. Once fully merged, the combined entity is expected to rank among the largest cement platforms globally by capacity. For context on how other Adani Group businesses performed in FY26, see Adani Green FY26 Results and Adani Power Q4 FY26 Results.

Industry Outlook: FY27 Growth Expected at ~5%

Ambuja’s management flagged a soft near-term demand environment, with FY27 industry demand growth expected at approximately 5%. Key risks include:

• A weaker-than-expected monsoon impacting rural housing and construction activity
• Inflation and cost pressures continuing into H1 FY27 (particularly fuel, diesel, and packaging)
• Global geopolitical uncertainty (West Asia conflict) affecting commodity prices

Long-term drivers remain intact. India’s structural demand for cement, driven by urbanisation, affordable housing, infrastructure investment, and government capex, continues to support a positive multi-year outlook for the sector. For a peer perspective on building materials demand, see how Kajaria Ceramics performed in Q4 FY26.