Ambuja Cements Q1 FY27: EBITDA margin up 331 bps, eyes 119 MTPA capacity
Synopsis
Ambuja Cements opened FY27 with a 331-basis-point sequential EBITDA margin expansion to 16.7% and ₹660 crore in net profit — all while staying debt-free and racing toward 119 MTPA capacity. With trial production already running at four new plants, the Adani-backed cement giant is making one of the sector's most ambitious capacity bets this fiscal year.
Key Takeaways
Ambuja Cements reported a consolidated net profit of ₹660 crore for Q1 FY27 (April–June).
EBITDA margin expanded 331 basis points sequentially to 16.7% ; operating EBITDA stood at ₹1,589 crore .
Revenue from operations reached ₹9,500 crore for the quarter.
Sequential cost reduction of ₹206 per metric tonne achieved through energy efficiency and lower clinker factor.
Company remains debt-free with net worth of ₹71,954 crore and cash of ₹844 crore .
On track for 119 MTPA capacity by end-FY27; trial production underway at Dahej, Salai Banwa, Bathinda and Jodhpur .
Ambuja Cements Ltd, backed by the Adani Group, reported a strong operational performance for the first quarter of FY27 (April–June), with EBITDA margin expanding 331 basis points sequentially to 16.7% even as geopolitical tensions in West Asia exerted temporary cost pressure. The company reaffirmed its target to scale cement manufacturing capacity to 119 million tonnes per annum (MTPA) by the end of FY27.
Key Financial Highlights
Ambuja Cements posted a consolidated net profit of ₹660 crore for the quarter, with revenue from operations at ₹9,500 crore and operating EBITDA at ₹1,589 crore. The company achieved a sequential cost reduction of ₹206 per metric tonne (PMT), attributed to operational excellence, improved energy efficiency, a lower clinker factor, and disciplined cost management.
The company maintained a debt-free balance sheet, with a net worth of ₹71,954 crore and cash and cash equivalents of ₹844 crore at the close of the quarter.
What the Management Said
Vinod Bahety, Whole Time Director and CEO of Ambuja Cements, said the company had 'started FY27 with strong momentum, driven by our focus on value-led growth, premiumisation and disciplined execution.' He added that 'higher trade sales and an increased share of premium products strengthened our market mix, resulting in improved profitability and quality of earnings.'
Capacity Expansion on Track
Ambuja Cements said it remains on course to hit its 119 MTPA capacity milestone by end-FY27 through commissioning of new plants at Dahej, Salai Banwa, Bathinda, Jodhpur, Kalamboli, and Warisaliganj. Trial production has already commenced at Dahej (1.2 MTPA), Salai Banwa (2.4 MTPA), Bathinda (1.2 MTPA), and Jodhpur (2 MTPA). Trial runs at Kalamboli (1 MTPA) and Warisaliganj (2.4 MTPA) are expected to begin in the second quarter of FY27.
Notably, this expansion push places Ambuja among the most aggressive capacity scalers in India's cement sector, as the industry races to meet infrastructure-driven demand.
Demand Outlook and Near-Term Risks
The company struck a cautiously optimistic tone on the broader demand environment. India's long-term cement demand outlook, it said, remains positive, underpinned by continued infrastructure spending, urbanisation, and housing demand. However, it flagged that near-term demand may stay subdued due to the monsoon season, geopolitical uncertainties, and input cost volatility.
This comes amid a wider industry trend of margin pressure from elevated energy costs and softening retail cement prices in several markets. Ambuja's ability to sustain its cost-reduction trajectory through Q2 will be a key indicator to watch.
Point of View
But it partly reflects a low base from the previous quarter's cost pressures. The real test is whether the company can sustain this trajectory as six new plants ramp up simultaneously and monsoon-led demand softness bites through Q2. The 119 MTPA target is ambitious; execution risk across six simultaneous commissioning sites is non-trivial, and any slippage could reset market expectations on the Adani Group's cement consolidation thesis.
NationPress
28 Jul 2026
Frequently Asked Questions
What were Ambuja Cements' Q1 FY27 financial results?
Ambuja Cements posted a consolidated net profit of ₹660 crore in Q1 FY27 (April–June), with revenue from operations at ₹9,500 crore and operating EBITDA at ₹1,589 crore. EBITDA margin expanded 331 basis points sequentially to 16.7%.
What is Ambuja Cements' 119 MTPA capacity target?
Ambuja Cements aims to reach 119 million tonnes per annum (MTPA) of cement manufacturing capacity by the end of FY27. This will be achieved through commissioning of new plants at Dahej, Salai Banwa, Bathinda, Jodhpur, Kalamboli, and Warisaliganj.
Which new Ambuja Cements plants have started trial production?
Trial production has commenced at Dahej (1.2 MTPA), Salai Banwa (2.4 MTPA), Bathinda (1.2 MTPA), and Jodhpur (2 MTPA). Trial runs at Kalamboli (1 MTPA) and Warisaliganj (2.4 MTPA) are expected to begin in Q2 FY27.
How did Ambuja Cements reduce costs in Q1 FY27?
The company achieved a sequential cost reduction of ₹206 per metric tonne through operational excellence, improved energy efficiency, a lower clinker factor, and disciplined cost management, even amid geopolitical pressures in West Asia.
What is Ambuja Cements' outlook for cement demand in India?
The company said India's long-term cement demand outlook remains positive, driven by infrastructure spending, urbanisation, and housing demand. However, it cautioned that near-term demand may stay subdued due to the monsoon season, geopolitical uncertainties, and input cost volatility.
