Ambuja Cement Q2 Profit Soars 268% Driven by Tax Reversal and Record Sales

Adani Group-led Ambuja Cement has reported a remarkable 268% jump in its consolidated net profit for the second quarter of FY26, reaching ₹1,766 crore compared to ₹479.53 crore in the same quarter last year. The company attributed the sharp surge largely to a one-time ₹1,697 crore income tax provision reversal, according to its filing with the Bombay Stock Exchange (BSE).

Despite a challenging business environment caused by prolonged monsoons, Ambuja Cement showcased resilience, supported by solid operational efficiencies and a strong uptick in demand. Revenue from operations stood at ₹9,129.7 crore for the quarter, marking a 25% year-on-year (YoY) growth, though sequentially it declined by around 11%.

The company achieved its highest-ever cement sales volume at 16.6 million tonnes (166 lakh tonnes), representing a 20% YoY rise. Its Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) rose 58% YoY to ₹1,761 crore, translating into a margin of 19.2%. These numbers reflect the company’s robust performance amid fluctuating raw material prices and subdued demand in certain regions.

Vinod Bahety, Chief Executive Officer of Ambuja Cement, said that the cement industry stands to benefit from several favourable policy developments such as GST 2.0 reforms, the Carbon Credit Trading Scheme (CCTS), and the withdrawal of coal cess. He added that Ambuja’s capacity expansion strategy is well aligned with these growth opportunities.

The company has revised its FY28 target capacity to 155 million tonnes per annum (MTPA) from the earlier 140 MTPA, an increase of 15 MTPA through debottlenecking initiatives at a lower capital cost of $48 per tonne. Ambuja also plans to install 13 blenders at its plants over the next 12 months to enhance its premium cement mix and improve realizations.

Looking ahead, Bahety expressed confidence in sustaining double-digit revenue growth and achieving a total cost target of ₹3,650 per metric tonne by FY28 through continuous efficiency improvements.