Ambuja Cements Reports Record Volume and Earnings for FY26

Ambuja Cements has reported its highest annual sales volume and a substantial increase in earnings for the financial year 2026, despite facing global economic uncertainties and rising input costs. The company, headquartered in Ahmedabad, Gujarat, announced that it achieved a record annual sales volume of 73.7 million tonnes and total revenue of ₹40,656 crore for the year ending March 31, 2026.

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) reached ₹6,539 crore, reflecting a 31% increase compared to the previous year. On a normalised basis, this translates to ₹887 per metric tonne of cement sold. In the fourth quarter of FY26, Ambuja Cements exhibited strong performance, recording its highest quarterly sales volume of 19.9 million tonnes, which marked a 10% year-on-year increase.

Revenue for this period was ₹10,915 crore, also showing a 9% rise from the previous year. Executive leadership particularly highlighted the achievements of Chief Executive Officer and Whole-Time Director Vinod Bahety, who stated that FY26 posed significant challenges for the cement sector, involving market consolidation, reforms related to the Goods and Services Tax (GST), adverse weather conditions, geopolitical factors, and regional elections all influencing the sector.

Bahety commented, "FY26 has been a year of resilience for the Cement sector which has witnessed consolidation... Against this backdrop, Ambuja Cements delivered a resilient performance for the year." The company also noted a normalised profit after tax (PAT) of ₹2,647 crore. Additionally, Ambuja Cements indicated that its growth in sales volume outpaced the overall industry trend, aided by an increase in sales of premium cement products and improved asset utilisation.

The firm reported that it maintains a strong financial standing, being entirely debt-free with considerable liquidity and top-tier credit ratings. Strategy-wise, the fiscal year 2026 represented a shift from expansion to consolidation for Ambuja Cements. The corporation successfully merged with Sanghi and Penna under its unified brand, termed the "One Cement Platform." However, the company has raised concerns regarding ongoing cost pressures stemming from fuel prices, packaging shortages, and a depreciating currency.

These issues are anticipated to extend into the first half of FY27. Looking ahead, Bahety expressed optimism regarding India’s long-term infrastructure growth, though stated that the immediate forecast for growth may be moderate. He projected industry demand to increase by approximately 5% in FY27.

Bahety affirmed, "We remain focused on stabilising new capacities, strengthening operating efficiency and improving asset utilisation, supported by a debt-free balance sheet, strong liquidity and the highest credit ratings." To address rising costs, the company is prioritising measures such as optimising fuel consumption, enhancing renewable energy utilisation, reducing logistics expenses, and improving production and inventory efficiencies.