Ambuja Cements Ltd, the world’s ninth largest building materials solutions company, reported a 37% increase in consolidated net profit at ₹1,857 crore for the March quarter compared with the year-ago period.
However, normalised net profit declined 34% to ₹569 crore, impacted by one-time reversals of income tax provisions (₹761 crore) and deferred tax liabilities (₹604 crore) arising from the mergers of Sanghi and Penna cements.
Highest revenue and volume
The company reported highest ever annual volume of 20 million tonnes, an increase of 10% and also highest ever quarterly revenue of ₹10,915 crore, an increase of 9%.
Ambuja Cements continues to remain a debt free firm. The board declared a dividend of ₹2 per share.
Operational performance
The company reported strong volume growth during the year, supported by improved realisations driven by a higher share of trade and premium products, along with better utilisation of existing assets.
Impact of West Asia Conflict:
Cost pressures from fuel, diesel, packaging bag supply constraints, and rupee depreciation impacted this quarter and impact expected to continue in H1 FY’27.
The Company is actively strengthening cost-mitigation measures through fuel mix optimisation, higher renewable energy usage, reducing logistics costs via rail and sea, and disciplined production and inventory management.
Leadership Comment
Ambuja Cements Whole Time Director & CEO, Vinod Bahety said: “FY26 has been year of resilience for the cement sector which has witnessed consolidation, GST 2.0 reforms on one side, while adverse weather conditions, global geo-political factors and state elections affected some or the other way. Against this background, we delivered resilient performance for the year.
FY26 marked a transition from expansion to consolidation with significant progress on ‘One cement platform’ wherein Sanghi and Penna cement merged successfully with Ambuja. We remain focused on stabilising new capacities, strengthening operating efficiency and improving asset utilisation, supported by a debt free balance sheet, strong liquidity and the highest credit ratings.
While India’s long-term infrastructure growth story remains fundamentally strong, the outlook for FY27 growth remains soft due to current geopolitical challenges and early forecast of below normal monsoon. We expect industry demand at 5% for FY 27,” he said.