Ambuja Cements Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Ambuja Cements Ltd filed with BSE on 03 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Ambuja Cements reported Q1 FY27 revenue of Rs 9,500 crore, operating EBITDA of Rs 1,589 crore, and EBITDA margin improving 331 basis points to 16.7%, while net operating cost fell to Rs 4,241 per metric ton. Trade volumes declined 2% year-on-year and non-trade volumes fell 21%, which management attributed to a deliberate shift toward higher-margin trade sales and reduced lower-margin non-trade volumes. Management also discussed capacity expansion progress, cost-reduction initiatives across logistics, renewable power and clinker factor, and temporary suspension of some older manufacturing facilities.
Numbers mentioned
Revenue: INR9,500 crores (Q1 FY27)
p. 5
“Revenue of INR9,500 crores, operating EBITDA of INR1,589 crores”
Vinod Bahety, page 5 of the filed PDF · View the filing
Operating EBITDA: INR1,589 crores (Q1 FY27)
p. 5
“Revenue of INR9,500 crores, operating EBITDA of INR1,589 crores”
Vinod Bahety, page 5 of the filed PDF · View the filing
EBITDA margin: 16.7% (Q1 FY27)
p. 5
“EBITDA margin, which has improved 331 basis points to now 16.7% EBITDA per ton of INR931 net cost reduced by INR206 per metric ton sequentially”
Vinod Bahety, page 5 of the filed PDF · View the filing
PAT: INR660 crores (Q1 FY27)
p. 5
“PAT of INR660 crores and net worth of almost INR72,000 crores”
Vinod Bahety, page 5 of the filed PDF · View the filing
Net operating cost: INR4,241 per metric ton (Q1 FY27)
p. 4
“Net operating cost reduced to INR4,241 per metric ton, a reduction of INR 206 PMT from the previous quarter.”
Vinod Bahety, page 4 of the filed PDF · View the filing
Trade sales share: 78% (Q1 FY27)
p. 4
“Trade sales share has actually improved from 74% to now 78% of our overall sales.”
Vinod Bahety, page 4 of the filed PDF · View the filing
Premium products share of trade sales: 34% (Q1 FY27)
p. 4
“Our premium strategy continues to gain traction with premium products comprising 34% of our trade sales.”
Vinod Bahety, page 4 of the filed PDF · View the filing
Trade volume growth: -2% Y-o-Y (Q1 FY27)
p. 4
“In all, we have a 2% negative Y-o-Y growth on the trade and a 21% Y-o-Y negative growth on non-trade.”
Vinod Bahety, page 4 of the filed PDF · View the filing
Clinker factor: 64% (Q1 FY27)
p. 4
“During the quarter, our clinker factor improved by approximately 3% to now 64%, while share of blended cement increased 85%, improving both profitability and sustainability.”
Vinod Bahety, page 4 of the filed PDF · View the filing
RE power capacity: 973 megawatts (Q1 FY27)
p. 4
“Our RE power capacity is now at 973 megawatts, up almost 500 megawatts over past 1 year.”
Vinod Bahety, page 4 of the filed PDF · View the filing
WHRS capacity: 228 megawatts (Q1 FY27)
p. 4
“WHRS capacity stands at 228 megawatts, and this has helped us to reduce our unit of power cost from INR5.9 per kWH to almost INR4.9.”
Vinod Bahety, page 4 of the filed PDF · View the filing
Installed capacity: 109 million tons (Q1 FY27)
p. 5
“Today, Ambuja has evolved into a 109 million tons of capacity integrated cement platform.”
Vinod Bahety, page 5 of the filed PDF · View the filing
Capacity utilization: 65% (Q1 FY27)
p. 13
“Overall capacity is 65%. But if I look at so yes, ballpark 65% on a totality basis.”
Vinod Bahety, page 13 of the filed PDF · View the filing
RMC EBITDA: INR33-odd crores (Q1 FY27)
p. 11
“So okay, in terms of the RMC EBITDA for the quarter, we are at about INR33-odd crores”
Vinod Bahety, page 11 of the filed PDF · View the filing
Capex FY27: INR6,500 crores (FY27)
p. 10
“So, capex is overall, say, closer to INR6,500 crores and which is well between the growth and the efficiency capex, but that's like we are working on.”
Vinod Bahety, page 10 of the filed PDF · View the filing
Power sale revenue: INR140-odd crores (Q1 FY27)
p. 17
“The sales revenue, I can say, for example, ballpark around INR140-odd crores is the sales number for the quarter.”
Vinod Bahety, page 17 of the filed PDF · View the filing
Green power units sold: 45 crores units (Q1 FY27)
p. 7
“What we have done is like we have set up the capacity. And just to put some more specific numbers, 45 crores units right, has been sold in first quarter out of our operating assets.”
Vinod Bahety, page 7 of the filed PDF · View the filing
Fly ash sales: ~INR15 crores (Q1 FY27)
p. 34
“so Rahul, it is ~INR15 crores for the first quarter, and you are right, around INR50 crores for the last quarter.”
Vinod Bahety, page 34 of the filed PDF · View the filing
EBITDA per ton (gray cement): INR911 per ton (Q1 FY27)
p. 17
“My EBITDA per ton for the gray cement is INR911 per ton. Yes, that's the number I have.”
Vinod Bahety, page 17 of the filed PDF · View the filing
Blended overall EBITDA per ton: Rs. 931 PMT (Q1 FY27)
p. 18
“Rs. 931 PMT”
Vinod Bahety, page 18 of the filed PDF · View the filing
South cluster volumes curtailed: ~1 million tons (Q1 FY27)
p. 20
“So we actually curtailed the low and negative EBITDA volumes, and this is almost like closer to 1 million, for example, which was which we actually reduced.”
Vinod Bahety, page 20 of the filed PDF · View the filing
Capex spent in Q1: INR1,500 crores to INR1,600 crores (Q1 FY27)
p. 12
“So 25% is there around closer to INR1,500 crores to INR1,600 crores, which we have invested.”
Vinod Bahety, page 12 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Trade volume growth — 8% · FY27
stated firmly by Vinod Bahety
p. 6
“And therefore, it gives me a good level of confidence to continue with our estimation and guidance of 8% growth, which we are targeting for this financial year.”
Vinod Bahety, page 6 of the filed PDF · View the filing
Net operating cost per ton — INR4,250 per ton · FY27
stated firmly by Vinod Bahety
p. 4
“Thus, it puts us firmly in terms of our guidance to achieve INR 4,250 per ton for this financial year.”
Vinod Bahety, page 4 of the filed PDF · View the filing
Installed capacity — 119 million tons · end of FY27
stated firmly by Vinod Bahety
p. 5
“These projects will increase our installed capacity to 119 million tons by end of this financial year, and it will also help us to improve on our efficiency and overall costs.”
Vinod Bahety, page 5 of the filed PDF · View the filing
Green power share of consumption — 60% · FY28
stated firmly by Vinod Bahety
p. 8
“So, we are absolutely well on our plan in terms of green power to achieve 60% by FY28.”
Vinod Bahety, page 8 of the filed PDF · View the filing
Cost savings from efficiency initiatives — INR130 to INR150 per ton
stated conditionally by Vinod Bahety
p. 5
“In all, these initiatives are expected to deliver savings of almost INR130 to INR150 per ton, providing a strong visibility towards our cost leadership target and enhancing long-term competitiveness.”
Vinod Bahety, page 5 of the filed PDF · View the filing
AFR/TSR utilization — 12% to 15% · this fiscal year
stated firmly by Vinod Bahety
p. 16
“So immediately, right now, for example, in this fiscal year, we are targeting to hit almost 12% to 15%.”
Vinod Bahety, page 16 of the filed PDF · View the filing
Net operating cost per ton — INR4,000 or below · end of FY28
stated as an aspiration by Vinod Bahety
p. 23
“And the way we have worked upon is the next year also, we want to bring another INR250 reduction in the cost so that by end of FY28, we reach up to INR4,000 or below in terms of cost per metric ton.”
Vinod Bahety, page 23 of the filed PDF · View the filing
Capacity additions — 8 million to 10 million tons per year · annually from FY28
stated as an aspiration by Vinod Bahety
p. 14
“Generally, we expect every year 8 million to 10 million tons of capacity additions, and that's like how we will plan it out.”
Vinod Bahety, page 14 of the filed PDF · View the filing
Capex FY28 — INR6,000 crores to INR7,000 crores · FY28
stated as an aspiration by Vinod Bahety
p. 30
“Yes. Yes. On a run rate, yes.”
Vinod Bahety, page 30 of the filed PDF · View the filing
Trade sales share — upwards of 75%
stated firmly by Vinod Bahety
p. 11
“Absolutely, Rajesh, you hit the point. It is going to be upwards of 75%”
Vinod Bahety, page 11 of the filed PDF · View the filing
WHRS capacity — 376 megawatts · FY28
stated firmly by Vinod Bahety
p. 14
“It is 228 megawatts, and this will go further to almost 376.”
Vinod Bahety, page 14 of the filed PDF · View the filing
Maratha clinker line commissioning — first quarter of FY28
stated firmly by Vinod Bahety
p. 18
“First yes, so like absolutely, first quarter of next year.”
Vinod Bahety, page 18 of the filed PDF · View the filing
Green power internal consumption — 100% consumption · next 3 quarters
stated as an aspiration by Karan Adani
p. 31
“This is a sort of a transition phase where we will move in the next 3 quarters to 100% consumption.”
Karan Adani, page 31 of the filed PDF · View the filing
Target capacity utilization — 70% to 75%
stated firmly by Vinod Bahety
p. 25
“I think our targeted utilization now that our focus on value and all in that background, I'm saying around 70% to 75%.”
Vinod Bahety, page 25 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said trade volumes are already growing 8% in July and reaffirmed the 8% guidance for the year.
Answered by Vinod Bahety
Asked by Navin Sahadeo: Will the volume decline strategy lead to muted full-year volume growth given the focus on value over volume?
p. 6
“As we speak in the month of July, and I would not shy highlighting that we are already seeing an 8% improvement on the trade volumes.”
Vinod Bahety, page 6 of the filed PDF · View the filing
Management said Orient needs minimal investment, Penna needs channel network investment more than capex, and Sanghi is investing about Rs 600 crore in jetty expansion.
Answered by Vinod Bahety
Asked by Manish Somaiya: What capex is needed to normalize utilization and EBITDA per ton at Sanghi, Penna and Orient?
p. 8
“Sanghi is quite moving well. And Sanghi, for example, we have seen an improvement in the capacity utilization, both clinker as well as cement.”
Vinod Bahety, page 8 of the filed PDF · View the filing
Management attributed it partly to differences in accounting treatment of Incoterms and netting off expenses in NSP calculation.
Answered by Vinod Bahety
Asked by Indrajit Agarwal: Why has ASP increase been one of the lowest in the industry despite improved trade sales share?
p. 10
“And so we actually put certain expenditures, which are netting off the NSP compared to some of the other industry players who may not do it, number one.”
Vinod Bahety, page 10 of the filed PDF · View the filing
Management said there are no such brand merger plans, only the announced company merger.
Answered by Vinod Bahety
Asked by Rajesh Ravi: Is there a plan to merge the ACC and Ambuja brands into an Adani Cement brand?
p. 11
“So Rajesh, no such plans for the brand merger. Whatever the plan is for the company merger, which we have announced.”
Vinod Bahety, page 11 of the filed PDF · View the filing
Management said the ICDs carry an 8% coupon and are within approved shareholder limits as part of the merger process.
Answered by Vinod Bahety
Asked by Ritesh Shah: How should the ICDs from ACC and Orient to the parent be interpreted given group-level cash access?
p. 15
“I think so these ICDs are well within the approved limits of the shareholders and carries a coupon of 8%.”
Vinod Bahety, page 15 of the filed PDF · View the filing
Management gave approximate regional splits, with North, West and East together making up around 80% of volumes.
Answered by Vinod Bahety
Asked by Amit Murarka: What is the regional volume mix for the quarter?
p. 16
“Ballpark, I'm going to highlight to you, let us say, the North is almost like closer to 25% for me. West is that higher to 30%-odd. East is also like 25%-odd.”
Vinod Bahety, page 16 of the filed PDF · View the filing
Management confirmed a total six-month suspension period.
Answered by Vinod Bahety
Asked by Pulkit Patni: For how long have the suspended plants been put on hold?
p. 19
“Total six months, basically.”
Vinod Bahety, page 19 of the filed PDF · View the filing
The CFO explained depreciation was elevated last quarter due to true-up entries from the Sanghi and Penna merger.
Answered by Rohit Soni
Asked by Rajesh Ravi: What was the depreciation run rate and why was it lower this quarter?
p. 19
“the depreciation run rate would stay at the similar level in the last quarter due to the true-up entries which were taken on account of the merger of Sanghi and Penna, the depreciation was higher Q-on-Q.”
Rohit Soni, page 19 of the filed PDF · View the filing
Management said about 1 million tons of low and negative EBITDA volumes were curtailed, with focus on improving cost to make them viable again.
Answered by Vinod Bahety
Asked by Rahul Gupta: What volumes were cut in the South region and from which acquired assets?
p. 20
“So we actually curtailed the low and negative EBITDA volumes, and this is almost like closer to 1 million, for example, which was which we actually reduced.”
Vinod Bahety, page 20 of the filed PDF · View the filing
Management said cost has fallen from about Rs 5,000 to Rs 4,241 per ton with further reduction targeted, but said EBITDA depends on price which is beyond their control.
Answered by Vinod Bahety
Asked by Jyoti Gupta: When will cost measures translate into higher EBITDA per ton and what market share gains are expected?
p. 23
“And we have now come to, say, INR4,241 a ton. And with a high element of confidence, we are giving a guidance for INR4 to INR5 a ton for the FY27, number one.”
Vinod Bahety, page 23 of the filed PDF · View the filing
Management said the acquisitions are assets that will start delivering results.
Answered by Vinod Bahety
Asked by Bharat C. Shah: Have the Penna, Sanghi and other acquisitions turned out to be assets or liabilities?
p. 24
“Bharat bhai, thank you for this alerting question, but we have actually got assets only, and these assets will actually start giving the results.”
Vinod Bahety, page 24 of the filed PDF · View the filing
Management cited diesel shortages and disruptions in western and eastern plants as factors keeping logistics costs elevated.
Answered by Vinod Bahety
Asked by Kunal Shah: Why has freight per ton remained stable despite lower lead distance?
p. 25
“So, Kunal bhai, basically, there was this disruption of the diesel shortages and more so like in some of the plants in Western side and all, basically, which hampered the distribution and therefore, escalated the escalation of the costs.”
Vinod Bahety, page 25 of the filed PDF · View the filing
Karan Adani explained the earlier non-trade push at acquired assets was often at negative or marginal EBITDA and dragged performance, so they now prioritize value over volume.
Answered by Karan Adani
Asked by Satyadeep Jain: Why did the company previously shift toward non-trade volumes at acquired assets, and why not maximize non-trade at lower utilization?
p. 31
“And most of the volume was happening at a negative EBITDA or a marginal EBITDA. And that was actually dragging the overall performance of the company down.”
Karan Adani, page 31 of the filed PDF · View the filing
Karan Adani said this is a transition phase due to grid connectivity limitations, with the ultimate goal of 100% in-house consumption.
Answered by Karan Adani
Asked by Satyadeep Jain: Why is renewable power and fly ash being sold externally rather than consumed in-house?
p. 31
“The ultimate goal is to consume everything in-house. It is a transition phase because we have as we as a lot of our systems come online.”
Karan Adani, page 31 of the filed PDF · View the filing
Management said the merger valuation was set by independent valuers per SEBI guidelines and that Orient's standalone numbers don't reflect MSA-related benefits.
Answered by Vinod Bahety
Asked by Rajesh Toshniwal: Why is there a large gap between Orient Cement's acquisition price and its implied merger valuation?
p. 32
“I think on that part, it is all about the valuations by the independent valuers and followed with the guidelines of pricing of SEBI guidelines and all.”
Vinod Bahety, page 32 of the filed PDF · View the filing
Risks flagged
Higher imported fuel prices, elevated freight costs and geopolitical developments in West Asia pressuring industry profitability
p. 3
“while profitability across the industry remained under pressure from the higher imported fuel prices, elevated freight costs and geopolitical developments in West Asia.”
Vinod Bahety, page 3 of the filed PDF · View the filing
Additional cost absorbed from scheduled kiln maintenance
p. 3
“We used this as an opportunity to perform scheduled maintenance for almost 12% of our kilns, absorbing additional cost of INR 50 per metric ton this quarter”
Vinod Bahety, page 3 of the filed PDF · View the filing
Potential further cost increase if geopolitical tensions continue
p. 9
“we are expecting almost INR130 to INR150 a ton, basically cushion available, which we are focusing to have any kind of and we are expecting, if at all, this kind of geopolitical situation continues, ballpark about say, INR100, for example, potential rise in the cost.”
Vinod Bahety, page 9 of the filed PDF · View the filing
West Asia escalation cost impact of INR110 per ton digested this quarter
p. 13
“By the way, is after absorbing the INR110, which ballpark, which we believe also has hit us from the West Asia escalation.”
Vinod Bahety, page 13 of the filed PDF · View the filing
Diesel availability and packing back availability disruptions impacting volumes
p. 12
“this quarter had the severe most impact of all the geopolitical tensions in terms of the diesel availability, in terms of the issues on interim issues on the packing back availability and so on and so forth.”
Vinod Bahety, page 12 of the filed PDF · View the filing
Near-term demand may be influenced by monsoon and input cost volatility
p. 6
“While near-term demand may remain influenced by monsoon and input cost volatility, our priorities remains unchanged.”
Vinod Bahety, page 6 of the filed PDF · View the filing
Temporary closure of older manufacturing facilities pending optimization
p. 22
“The very old facilities of ACC, some of them and one facility also of an acquired company.”
Vinod Bahety, page 22 of the filed PDF · View the filing
South region requires additional channel investment and remains behind on trade penetration
p. 20
“we will have an opportunity because our market share, for example, will give us the opportunity to move into the trade segment.”
Vinod Bahety, page 20 of the filed PDF · View the filing
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