Ambuja Cement Q3 Profit Slumps 90.5% Despite Record Volumes and Revenue

Ambuja Cement, part of the Adani Group, reported a steep 90.5 percent year on year decline in consolidated profit for the third quarter of FY26, highlighting the pressure of rising costs despite strong operational performance. The company posted a profit of Rs 204 crore for the quarter, sharply lower than Rs 2,158 crore recorded in the same period last year.

The sharp fall in profit was largely attributed to the absence of a one time tax gain of Rs 825 crore that had boosted earnings in the year ago quarter, along with a significant rise in expenses. Ambuja Cement’s total expenses increased by 21 percent during the quarter, reflecting higher input and operational costs across the value chain.

Despite the profit decline, the company delivered robust topline growth. Consolidated revenue for the quarter stood at Rs 10,180 crore, compared with Rs 8,498 crore in the corresponding period of the previous financial year. This growth was supported by strong demand and higher sales volumes, underscoring Ambuja Cement’s expanding footprint across key regional markets.

Operating performance, however, remained under pressure. Operating EBITDA declined to Rs 1,353 crore in the December quarter from Rs 1,712 crore a year earlier. The operating EBITDA margin also narrowed to 13.2 percent from 18.2 percent, indicating cost pressures even as volumes improved.

Ambuja Cement achieved its highest ever quarterly sales volume of 18.9 million tonnes, marking a 17 percent increase from 16.2 million tonnes in the year ago quarter. The company attributed this growth to higher trade and premium cement sales, improved realisations compared to industry peers and better utilisation of base capacity.

During the quarter, Ambuja Cement commenced operations at its 2.4 million tonnes per annum Marwar Grinding Unit, taking its total cement capacity to 109 million tonnes per annum. The company has maintained its target of achieving 115 million tonnes per annum capacity by March 2026.

The company also announced the proposed amalgamation of its subsidiaries ACC and Orient Cement with Ambuja Cement, aimed at creating a unified pan India cement player. According to the company, the merger will help optimise manufacturing and logistics, streamline operations and strengthen the balance sheet for efficient capital allocation.

Ambuja Cement said it remains debt free with a net worth of Rs 69,854 crore and continues to focus on cost optimisation measures including power efficiency, green energy usage, logistics improvements and waste heat recovery to enhance long term profitability.