How Did Adani’s Ambuja Cements Q2 Profit Skyrocket by 364%?
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Synopsis
Ambuja Cements has reported remarkable financial growth in Q2 FY26, with a net profit soaring by an astounding 364% YoY. This significant increase highlights the company's resilience and strategic advancements within the cement industry, promising a fruitful outlook for the future.
Key Takeaways
- Net profit surged by 364% YoY to Rs 2,302.3 crore.
- Standalone PAT nearly tripled, showing a 177% increase.
- Total revenue reached Rs 9,174 crore, the highest for Q2.
- Operating margin improved to 19.2%, up 4.5 percentage points.
- Plans for capacity expansion with a target of 155 MTPA by FY28.
Ahmedabad, Nov 3 (NationPress) Ambuja Cements, a key entity within the expansive Adani Group, announced impressive financial outcomes for the second quarter of the fiscal year 2026 (Q2 FY26). The company reported a consolidated net profit (PAT) that surged by 364 percent year-on-year (YoY), reaching Rs 2,302.3 crore, a significant rise from Rs 496.5 crore recorded in the same quarter last year (Q2 FY25).
Additionally, the standalone PAT saw an extraordinary increase, nearly tripling to Rs 1,387.55 crore, compared to Rs 500.66 crore during the previous fiscal year's quarter, reflecting a 177 percent YoY growth.
In terms of revenue, the company achieved Rs 9,174 crore, marking its highest-ever performance for a second quarter and a 21 percent increase from the previous year.
Vinod Bahety, Whole Time Director and CEO of Ambuja Cements, emphasized that “this quarter has been remarkable for the cement sector.”
He further remarked, “Despite challenges posed by extended monsoon seasons, the industry stands to gain from several positive developments, including GST 2.0 reforms, the Carbon Credit Trading Scheme (CCTS), and the elimination of coal cess.”
EBITDA for the quarter amounted to Rs 1,761 crore, reflecting a 58 percent increase from the previous fiscal year, with EBITDA per tonne climbing to Rs 1,060, a 32 percent YoY improvement.
The operating margin for the company rose to 19.2 percent, an increase of 4.5 percentage points.
Ambuja Cements maintained a debt-free status, with a net worth of Rs 69,493 crore, up by Rs 3,057 crore during the quarter. Its earnings per share (EPS) surged by 267 percent to reach Rs 7.2.
On the operational side, the company revealed several plans for capacity expansion. Its target for FY28 capacity has been elevated from 140 million tonnes per annum (MTPA) to 155 MTPA, with the additional 15 MTPA expected to be realized through cost-effective debottlenecking at approximately $48 per tonne.
Furthermore, the company has initiated trial operations for a new 4 MTPA kiln line at Bhatapara in Chhattisgarh, and the 2 MTPA Krishnapatnam grinding unit has commenced operations. An additional 7 MTPA from three more locations is anticipated to be operational in the upcoming quarter.
“Our forecast for the remainder of FY26 is optimistic. We are confident in achieving double-digit revenue growth and four-digit PMT EBITDA,” the company stated.
Point of View
The significant growth reported by Ambuja Cements underscores the resilience and strategic direction of the company within a fluctuating economic landscape. This performance not only reflects the broader trends in the cement sector but also highlights the potential for continued expansion and innovation in the industry, ensuring that Ambuja Cements remains a key player.
NationPress
06/01/2026
Frequently Asked Questions
What were Ambuja Cements' profits for Q2 FY26?
Ambuja Cements reported a consolidated net profit of Rs 2,302.3 crore for Q2 FY26, reflecting a remarkable increase of 364% YoY.
How much did the company's revenue increase in Q2 FY26?
The total revenue for Ambuja Cements reached Rs 9,174 crore in Q2 FY26, marking a 21% increase from the previous year.
What is the company's outlook for FY26?
Ambuja Cements maintains a positive outlook for the remainder of FY26, expecting double-digit revenue growth and substantial EBITDA improvements.
What are the key factors influencing the cement industry according to Ambuja Cements?
Key factors include GST 2.0 reforms, the Carbon Credit Trading Scheme, and the withdrawal of coal cess, which are seen as beneficial for the sector.
Is Ambuja Cements debt-free?
Yes, Ambuja Cements remains debt-free, with a net worth of Rs 69,493 crore, which has increased during the quarter.
