1. At a Glance – Blink and You’ll Miss the Drama
Ambuja Cements is no longer just a cement company; it’s the Adani Group’s construction-materials muscle flexing in slow motion but with very heavy weights. Market cap at ~₹1.26 lakh crore, stock price chilling near ₹510 (after a spicy fall), and a P/E of ~33x that politely assumes everything will be fine in the future. Spoiler: Q3 FY26 was not fine.
Quarterly revenue came in at ₹10,277 crore (respectable), but PAT collapsed to ₹367 crore, down 90% YoY, like a perfectly poured concrete slab cracking overnight. EBITDA margin slid to ~13%, thanks to higher costs, depreciation shock, and one-time items.
On the positive side, Ambuja is nearly debt-free (D/E ~0.02), controls 108.85 MTPA cement capacity post expansions, and sits inside the Adani ecosystem with a 16.6% cement market share as of Q2 FY26. This is scale, distribution, and ambition — but profitability is currently asking for a breather.
So the real question: is this a temporary cement dust storm or structural margin stress? Let’s dig.
2. Introduction – From Swiss Stability to Adani Aggression
Once upon a time, Ambuja was the calm, cash-generating Swiss-backed cement major that conservative investors used as a sleeping pill. Then came the Adani Group, and suddenly Ambuja woke up, drank six espressos, and started buying capacity like it was Black Friday.
Today, Ambuja is the core holding company for Adani’s cement ambitions, sitting above ACC, Sanghi, Penna (incoming), and Orient Cement (recently acquired). The strategy is loud and clear: scale first, synergy later, margins eventually.
FY25–FY26 has been about:
- Massive capex (₹14,369 crore in FY25),
- Aggressive acquisitions,
- Brownfield and greenfield expansions,
- And consolidating the entire cement value chain under one roof.
But markets are impatient. When Q3 FY26 showed profits falling off a cliff, investors
didn’t clap for “long-term vision.” They sold.
Is Ambuja overbuilding? Or just front-loading pain? Hold that thought.
3. Business Model – WTF Do They Even Do? (Besides Digging Limestone)
At its core, Ambuja makes cement. But in classic Adani fashion, it doesn’t stop there.
Core Cement Business
- Ordinary Portland Cement (OPC)
- Portland Pozzolana Cement (PPC)
- Blended cement (77% of sales — cost-efficient, margin-friendly… in theory)
Premium & Brand Stack
- Ambuja Cement (base)
- Ambuja Plus
- Ambuja Kawach
- Ambuja Compocem
Through ACC, it also controls brands like ACC Gold, Suraksha Power, and Shaktimaan — basically cement with gym memberships.
Beyond Cement (Because Why Not?)
- Ready Mix Concrete (116 plants)
- Aggregates
- Alccofine (high-performance SCM)
- Dry Mortars (DMX)
- AAC Blocks
- Wall Putty, Grinding Aids, Fly Ash
This turns Ambuja from “cement seller” into a construction solutions platform, increasing wallet share per project.
Still, the entire business is brutally cyclical, fuel-cost sensitive, and dependent on infrastructure spending. No amount of branding can save you if coal prices misbehave.
4. Financials Overview – Numbers That Need Therapy
Quarterly Performance Table (₹ Crore)
| Metric | Q3 FY26 | Q3 FY25 | Q2 FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 10,277 | 9,411 | 9,174 | +9.2% | +12.0% |
| EBITDA | 1,353 | 1,712 | 1,761 | -21.0% | -23.1% |
| PAT | 367 | 2,663 | 2,302 | -90.2% | -84.1% |
| EPS (₹) | 0.82 | 8.76 | 7.14 | -90.6% | -88.5% |
Commentary:
Revenue said “growth story.” Costs said
