💰 Financial Performance

Revenue Growth by Segment

Standalone revenue grew 21% YoY to INR 10,663 Cr in H1 FY26. The Ready Mix Concrete (RMC) business share increased from 4% in FY25 to 4.5% in H1 FY26.

Geographic Revenue Split

Not disclosed in available documents, though the company maintains a pan-India presence with 24 Integrated Units and 22 Grinding Units.

Profitability Margins

Consolidated EBITDA margin stood at 19.1% for H1 FY26. Standalone PAT for Q2 FY26 was INR 1,388 Cr, up 177% YoY, aided by a tax provision reversal of INR 1,697 Cr.

EBITDA Margin

Consolidated EBITDA margin was 19.1% in H1 FY26. Standalone EBITDA margin for H1 FY26 was 14.8%, a slight decrease of 0.3pp YoY from 15.1%.

Capital Expenditure

Planned capital expenditure of INR 38,000 Cr over FY26 to FY28, with annual spending of INR 9,000-10,000 Cr to reach 140 MTPA capacity.

Credit Rating & Borrowing

Ratings reaffirmed at CRISIL AAA/Stable and CRISIL A1+. The company is debt-free at the standalone level, while the holding company has outstanding debt of USD 4.205 billion.

⚙️ Operational Drivers

Raw Materials

Limestone, Fly Ash, Slag, and Gypsum. Raw material costs represented 14.5% of revenue (INR 2,833 Cr) in H1 FY26.

Import Sources

Not disclosed in available documents, though the company utilizes captive coal and alternative raw materials.

Key Suppliers

Master Supply Agreements (MSAs) are established with ACC Limited, Sanghi Industries Limited, Asian Fine Cement, and Penna Cement Industries.

Capacity Expansion

Current capacity of 106.45 MTPA as of Sept 2025, expanding to 118 MTPA by FY26, 130-135 MTPA by FY27, and 155 MTPA by FY28.

Raw Material Costs

Raw material costs were INR 2,833 Cr in H1 FY26, up from INR 6,527 Cr for the full year FY25, representing 14.5% of revenue.

Manufacturing Efficiency

EBITDA for existing assets (Ambuja + ACC) stands at INR 1,184/ton. Target cost reduction of INR 530/tonne by FY28.

Logistics & Distribution

Focus on sea and rail logistics; the company operates 11 captive ships and 10 bulk packaging terminals to optimize distribution.

📈 Strategic Growth

Expected Growth Rate

10-15%

Growth Strategy

Growth will be achieved through capacity expansion from 106.45 MTPA to 155 MTPA by FY28, acquisitions like Orient Cement (8.5 MTPA), and a cost reduction target of INR 530/tonne by FY28.

Products & Services

Grey cement bags and Ready Mix Concrete (RMC).

Brand Portfolio

Ambuja Cements, ACC, and Adani Cement.

New Products/Services

Premium products are being promoted to increase customer preference and realizations.

Market Expansion

Targeting a consolidated capacity of 140 MTPA by 2028 and 155 MTPA with debottlenecking.

Market Share & Ranking

Second largest manufacturer in the Indian cement industry with 106.45 MTPA capacity.

Strategic Alliances

Master Supply Agreements (MSAs) with ACC, Sanghi Industries, and Penna Cement to optimize plant capacities and inventories.

🌍 External Factors

Industry Trends

Industry consolidation and a shift toward green energy; Ambuja is targeting a significant increase in its green power mix.

Competitive Landscape

Operates in a commoditized and cyclical industry against major players, maintaining the #2 market position.

Competitive Moat

Moat built on cost leadership via Adani group synergies, a massive pan-India distribution network, and 11 captive ships for low-cost sea logistics.

Macro Economic Sensitivity

Highly sensitive to GDP growth and infrastructure spending which drive cement demand.

Consumer Behavior

Increasing preference for premium products among customers and dealers.

⚖️ Regulatory & Governance

Industry Regulations

Oversight provided by the Legal, Regulatory and Tax Committee to ensure compliance with applicable laws.

Environmental Compliance

Targeting a Lost Time Injury Frequency Rate (LTIFR) of less than 0.1 for FY30 (0.42 in FY25).

Taxation Policy Impact

Standalone PAT in Q2 FY26 included a tax provision reversal of INR 1,697 Cr.

⚠️ Risk Analysis

Key Uncertainties

Input cost volatility (power/fuel represents 24.6% of revenue) and cyclicality in the cement industry.

Geographic Concentration Risk

Pan-India presence reduces regional concentration risk, with 24 integrated and 22 grinding units.

Third Party Dependencies

Dependency on Adani Group synergies and Master Supply Agreements with subsidiaries like ACC and Sanghi.

Technology Obsolescence Risk

Digital transformation status includes AI-driven tools, drones, and SAP upgrades to optimize operations.

Credit & Counterparty Risk

Strong liquidity with a liquid surplus of INR 10,125 Cr as of March 31, 2025.