1. Opening Hook
While Team India was busy lifting the ICC Women’s World Cup, Ambuja’s management decided to lift margins instead. The cement maker’s Q2FY26 was less about grey powder and more about green power — literally and figuratively. Amid monsoon blues and GST reforms, Ambuja turned the kiln heat into profit heat, flexing EBITDA of ₹1,060 per ton and a 364% surge in PAT (yes, triple digits).And before you yawn at “debottlenecking” — they’re adding 15 million tons capacity at just $48/ton. Cement bros, take notes. The real story? Adani’s cement empire just started flexing — and things are getting spicy from here.
2. At a Glance
- Revenue up 21% YoY:Customers clearly didn’t get the “housing slump” memo.
- Volumes up 20% YoY:Built like a brick wall — literally.
- EBITDA ₹1,761 cr, up 58%:The kiln’s on fire, and it’s legal.
- Margins at 19.2% (up 450 bps):When AI meets limestone.
- PAT ₹2,302 cr, up 364%:One-time tax write-back or divine intervention — you decide.
- Debt-Free:CFO calls it “balance sheet yoga.”
- Green Power at 33% share:“We’re cementing climate goals,” they said. 😏
3. Management’s Key Commentary
“EBITDA reached ₹1,060 per ton, up 32% YoY.”(Translation: We mined efficiency, not just limestone.)
“Costs reduced by 5% YoY led by kiln fuel efficiency.”(Read: We bullied coal prices into submission.)
“Debottlenecking to add 15 MTPA at $48 per ton.”(That’s like buying an iPhone on Diwali discount — in cement terms.)
“Targeting 155 MTPA capacity by FY28.”(Ambuja’s turning into the Mukesh Ambani of cement — expansion never sleeps.)
“Launching CINOC — Cement Intelligent Network Operations Center.”(Yes, AI is officially controlling cement plants now. Skynet, but make it Adani.) 🤖
“Average employee age down to 38 years.”(Hiring Gen Z to handle kilns — what could go wrong?)
“Green Power to hit 60% by FY28.”(They’re burning carbon credits faster than coal.)
“Integration of Penna and Orient among the fastest ever.”(“We came, we merged, we conquered” — Adani probably.)
4. Numbers Decoded
| Metric | Q2FY26 | YoY Growth | Punchline |
|---|---|---|---|
| Sales Volume | 16.6 MTPA | +20% | Cement moving faster than IPO gossip. |
| Revenue | ₹9,174 cr | +21% | Inflation-proof construction boom. |
| EBITDA | ₹1,761 cr | +58% | The kiln’s printing money. |
| EBITDA/ton | ₹1,060 | +32% | Every bag now carries attitude. |
| PAT | ₹2,302 cr | +364% | Tax refund turned fairy godmother. |
| Green Power Share | 33% | +14% | “Eco-friendly profits.” |
| Target Cost FY26 | ₹4,000/ton | -5% | Cemented cost control plan. |
Cost heroics, volume swagger, and AI-led ops — Ambuja’s playing 3D chess while rivals still mix mortar.
5. Analyst Questions
Q:Why are “other expenses” falling in a maintenance quarter?A:“Better synergies and cheaper media.”(Translation: We cut ad budgets, not corners.)
Q:₹2,000 crore jump in working capital?A:“Inventory build-up, spares, and coal stock.”(Basically hoarding before price spikes — smart move.)
Q:Will ₹4,000/ton cost target hold?A:“By March 2026 — take it as gospel.”(CEO’s cemented this goal, literally.)
Q:Is 20% volume growth sustainable?A:“Double-digit growth for many quarters.”(Confidence so strong, it could support a flyover.)
6. Guidance & Outlook
Ambuja aims tohit 155 MTPA capacity by FY28
