Ambuja Cements Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Ambuja Cements Ltd filed with BSE on 10 May 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 FY26 sales volume of 73.7 million tonnes, up 16% year-on-year, with normalized EBITDA of Rs 6,539 crore, up 31%, and PAT of Rs 2,647 crore, up 17%. Management attributed higher-than-expected costs during the quarter to freight, packaging, fuel and branding expenses, particularly at the newly acquired Sanghi and Penna assets. For FY27, management guided to consolidated volumes of around 80 million tonnes and outlined a plan to reduce costs by Rs 250 per tonne, while acknowledging a recalibration of its longer-term capacity expansion timeline.
Numbers mentioned
Annual sales volume: 73.7 million tonnes (FY26)
p. 3
“achieving its highest ever annual sales volume of 73.7 million tonnes, up 16% Y-on-Y, year-on-year in that manner”
Vinod Bahety, page 3 of the filed PDF · View the filing
Normalized EBITDA: INR6,539 crores (FY26)
p. 3
“the EBITDA of INR6,539 crores, up 31% at INR887 per metric ton, which is on a PMT basis, up 12%”
Vinod Bahety, page 3 of the filed PDF · View the filing
PAT: INR2,647 crores (FY26)
p. 3
“and the PAT of INR2,647 crores, up 17%”
Vinod Bahety, page 3 of the filed PDF · View the filing
Cement capacity: 109 million tonnes (FY26)
p. 3
“company's cement capacity increased to 109 million tonnes, supported by commissioning of 10.7 million tonnes of new grinding capacity at various locations”
Vinod Bahety, page 3 of the filed PDF · View the filing
Trade sales premium cement share: 35% (FY26)
p. 3
“while the premium cement accounted for 35% of the trade sales during the year, reflecting sustained progress on premiumization”
Vinod Bahety, page 3 of the filed PDF · View the filing
Full year cost per tonne: INR4,400 a tonne (FY26)
p. 5
“we have achieved a figure of INR4,400 a tonne, which is almost 10% higher to our own target for the reasons which I have mentioned before”
Vinod Bahety, page 5 of the filed PDF · View the filing
March month cost per tonne: INR4,100 a tonne (March 2026)
p. 5
“Although in the month of March, we are closer to INR4,100 a tonne”
Vinod Bahety, page 5 of the filed PDF · View the filing
Quarter cost per tonne: INR4,500 a tonne (Q4 FY26)
p. 7
“So almost we are at now INR4,500 a tonne for the quarter of March”
Vinod Bahety, page 7 of the filed PDF · View the filing
Clinker capacity: 69 million tonnes (current)
p. 7
“So Raashi, as of now, we are sitting on 69 million tonnes of clinker capacity”
Vinod Bahety, page 7 of the filed PDF · View the filing
FY26 capex: INR7,500-odd crores (FY26)
p. 8
“FY '26 is closer to about INR7,500-odd crores”
Vinod Bahety, page 8 of the filed PDF · View the filing
Trade cement price: INR254 a bag (Q4 FY26)
p. 9
“What we have done is we have sustained the price levels at INR254 a bag compared to in December”
Vinod Bahety, page 9 of the filed PDF · View the filing
FY26 branding and advertisement cost: INR70 a tonne (FY26)
p. 17
“So for the full fiscal year '26, we are closer to almost like INR700 a tonne basically -- INR70 a tonne basically -- yes, INR70 a tonne basically on the full year basis of '26”
Vinod Bahety, page 17 of the filed PDF · View the filing
Full year RMX EBITDA: INR300 crores (FY26)
p. 20
“Okay. Around INR300 crores. So full year RMX EBITDA is a number of INR300 crores basically for the FY '26.”
Vinod Bahety, page 20 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.
Consolidated volume growth — around 80 million tonnes · FY27
stated conditionally by Vinod Bahety
p. 5
“On our overall consol volumes, we are expecting it to grow in FY '28 -- '27 by almost, say, 8% to around 80 million-odd tonnes.”
Vinod Bahety, page 5 of the filed PDF · View the filing
Cement capacity — almost 119 million tonnes · end of FY27
stated firmly by Vinod Bahety
p. 6
“We are expecting to hit capacity of almost 119 million tonnes by end of FY '27.”
Vinod Bahety, page 6 of the filed PDF · View the filing
Industry volume growth — around 5% to 5.5% · FY27
stated conditionally by Vinod Bahety
p. 5
“we believe that given the headlines of inflation and weak monsoon, the industry may grow at around, say, 5% to 5.5%.”
Vinod Bahety, page 5 of the filed PDF · View the filing
Cost per tonne — INR4,250 a tonne · FY27
stated firmly by Vinod Bahety
p. 19
“What we would put it is INR4,500 is the peak and this INR250 reduction is from here. So essentially, then it would mean INR4,250 as a target for '27.”
Vinod Bahety, page 19 of the filed PDF · View the filing
Cost savings from raw material and green energy — INR150 to INR200 savings
stated as an aspiration by Vinod Bahety
p. 5
“Therefore, I strongly believe INR150 to INR200 savings will come from these components.”
Vinod Bahety, page 5 of the filed PDF · View the filing
Cost per tonne reduction — INR250 a tonne this year and another INR250 next year · FY27 and FY28
stated firmly by Karan Adani
p. 16
“cost, we are looking at roughly INR250 a tonne reduction this year and then another reduction of INR250 next year as well. That is the minimum reduction that we are looking at.”
Karan Adani, page 16 of the filed PDF · View the filing
Capex — INR6,000 crores to INR6,500 crores · FY27
stated conditionally by Vinod Bahety
p. 8
“for FY '27, we are keeping an estimate of almost INR6,000 crores to INR6,500 crores.”
Vinod Bahety, page 8 of the filed PDF · View the filing
Capacity target of 155 million tonnes — FY30 · FY30
stated as an aspiration by Vinod Bahety
p. 7
“I think we have a good headroom to improve our overall, say, market share by improving the capacity utilization of these plants.”
Vinod Bahety, page 7 of the filed PDF · View the filing
Project IRR target — 18%
stated firmly by Karan Adani
p. 18
“It's capex -- I mean, the project IRR has to be 18%. this is all equity money.”
Karan Adani, page 18 of the filed PDF · View the filing
Utilization improvement at Sanghi and Penna — 5% to 10%
stated as an aspiration by Vinod Bahety
p. 5
“Together, they have 19 million tonnes of capacity, and the target is to increase the utilization by at least 5% to 10% for these assets.”
Vinod Bahety, page 5 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 the March quarter was muted but expects incremental volumes from stabilizing acquired assets and new capacity commissioning through September.
Answered by Vinod Bahety
Asked by Navin Sahadeo: Why is volume growth muted this quarter given the FY27 volume guidance of 80 million tonnes against softer industry growth?
p. 6
“So I have the incremental volume also coming from these capacities, which I mentioned almost around 10 million tonnes and of course, stabilizing the acquired assets of Penna and Sanghi.”
Vinod Bahety, page 6 of the filed PDF · View the filing
Management said the quarter cost was around INR4,250 normalized plus INR250 of increases, totaling about INR4,500 per tonne.
Answered by Vinod Bahety
Asked by Raashi Chopra: What was the average cost for the March quarter versus the full year FY26 figure of INR4,400?
p. 7
“In terms of quarter cost, Raashi, we are sitting at almost INR4,250 for the overall quarter and plus some of these increases what we have seen from the overall escalation.”
Vinod Bahety, page 7 of the filed PDF · View the filing
Management said price levels were sustained near flat and improvements from premiumization and trade sales mix will show in subsequent quarters.
Answered by Vinod Bahety
Asked by Indrajit Agarwal: Why has realization barely moved quarter-on-quarter versus peers who saw 1.5-2% increases?
p. 9
“What we have done is we have sustained the price levels at INR254 a bag compared to in December.”
Vinod Bahety, page 9 of the filed PDF · View the filing
Management attributed the increase to higher branding spend, repairs and maintenance, breakdowns at acquired assets, and higher heat consumption at Penna and Sanghi.
Answered by Vinod Bahety
Asked by Jashandeep Singh Chadha: Why is Ambuja's cost structure and fixed cost rising more than peers, and why were shutdowns taken in volume-push quarters?
p. 10
“Actually, when I look at the EBITDA of Ambuja and ACC, minus of the acquired assets, the EBITDA is actually higher by INR70, INR80.”
Vinod Bahety, page 10 of the filed PDF · View the filing
Management gave separate utilization targets for each acquired asset and an overall consolidated estimate.
Answered by Vinod Bahety
Asked by Jashandeep Singh Chadha: What utilization targets does management have for Sanghi, Orient and Penna in FY27?
p. 11
“So far as Sanghi is concerned, I will peg myself at almost like 65% to 70%. And so far as Penna is concerned, I will consider around 55% to 60% in terms of the utilization factors.”
Vinod Bahety, page 11 of the filed PDF · View the filing
Management said internal execution will be weighted more heavily than external factors, and any guidance miss would be attributed to internal issues.
Answered by Karan Adani
Asked by Manish Somaiya: How much of the FY27 improvement depends on internal execution versus external normalization?
p. 12
“And based on whatever guidance we are giving, this is 100%, which is controllable by us. And if we are not able to achieve the guidance, it's purely because of our internal execution and not any other factor.”
Karan Adani, page 12 of the filed PDF · View the filing
Management clarified that the earlier commentary referred to an aspiration for the exit month, not the quarter average, and that both December and March quarters averaged around INR4,500.
Answered by Vinod Bahety
Asked by Amber Singhania: How should investors reconcile the December cost commentary of near INR4,000 exit with the March quarter average of INR4,500?
p. 14
“the commentary was more about our aspiration and our plan to get closer to INR4,000 by month of March. Now basically. Therefore, while the average would still be higher than not at INR4,000.”
Vinod Bahety, page 14 of the filed PDF · View the filing
Management acknowledged a partial reset, saying the target itself is unchanged but the timeline has moved.
Answered by Karan Adani
Asked by Amit Murarka: Is the current guidance a reset from the earlier ambition to double capacity and volume?
p. 18
“So we'll be honest with you. Yes, partially, there is a reset. We are not moving away from the target. Yes, we are moving away from the time line.”
Karan Adani, page 18 of the filed PDF · View the filing
Management listed five focus areas centered mainly on cost reduction across raw materials, energy, plant discipline and channel network.
Answered by Karan Adani
Asked by Ritesh Shah: What prompted the reset and what are the key monitorables for the next year?
p. 17
“One is L1 plants delivering to the market, the discipline on L1 plants delivering to the respective markets. Second discipline is on trade versus non-trade sales.”
Karan Adani, page 17 of the filed PDF · View the filing
Management cited contractor selection issues, lack of an experienced team at acquisition time, and incomplete engineering as reasons for delays, and attributed breakdowns mainly to acquired assets like Penna and Sanghi.
Answered by Karan Adani
Asked by Raghav Maheshwari: Why have capex projects like Maratha been delayed and why are there breakdowns at bigger plants?
p. 20
“I think one is we did not choose the right contractor for execution.”
Karan Adani, page 20 of the filed PDF · View the filing
Risks flagged
Adverse weather conditions and state elections affecting industry demand
p. 3
“while the adverse and the extended weather conditions, global geopolitical factors and the various state elections also affected the industry and demand in some or the other way”
Vinod Bahety, page 3 of the filed PDF · View the filing
Higher freight cost due to increased sale lead and additional goods tax
p. 4
“Primarily, if I have to look at the reasons, higher freight cost due to increase in the overall sale lead, primary and secondary both, increase in some of the states like the additional goods tax, especially in Himachal.”
Vinod Bahety, page 4 of the filed PDF · View the filing
West Asia conflict driving up packing costs
p. 4
“Then in terms of the higher packing costs, which we more so have seen that in the month of March, which has seen some abruptions given the West Asia war.”
Vinod Bahety, page 4 of the filed PDF · View the filing
Delay in railway infrastructure affecting fly ash raw material costs
p. 4
“pending some of the railway infrastructure, which will be completed in the coming months, and you will see a good level of improvement on that. But pending that, we have not been able to meet our -- some of the raw material costs to our desired levels.”
Vinod Bahety, page 4 of the filed PDF · View the filing
Delay in efficiency capex projects
p. 5
“Essentially, there is a 3 to 6 months delay on some of the efficiency capexes, which has happened.”
Vinod Bahety, page 5 of the filed PDF · View the filing
Global geopolitical situation causing cost escalation
p. 5
“while we are cognizant of the overall ongoing global geopolitical situation, and we have already seen cost escalation in Q4, more so in the month of March, almost by INR25 a bag”
Vinod Bahety, page 5 of the filed PDF · View the filing
Inflation and weak monsoon expected to soften industry demand
p. 5
“At an industry level, we believe that given the headlines of inflation and weak monsoon, the industry may grow at around, say, 5% to 5.5%.”
Vinod Bahety, page 5 of the filed PDF · View the filing
Inability of the industry to pass on cost increases through pricing
p. 8
“Now with the demand getting a little softer, the pressure on pricing definitely is higher. And despite the circumstances of costs gone up, unfortunately, industry is still under the relentless pressure and not able to pass on the price.”
Vinod Bahety, page 8 of the filed PDF · View the filing
Breakdowns and higher repairs and maintenance costs at acquired assets
p. 10
“And there have been a few breakdowns also of the acquired assets of Penna's and all.”
Vinod Bahety, page 10 of the filed PDF · View the filing
Lower government incentives due to GST rate changes and plant incentive exhaustion
p. 13
“that also, for example, we have a lower government incentive, a, because of the GST rates, which have come down; b, we have also exhausted some of the plants which we are giving -- having the incentives.”
Vinod Bahety, page 13 of the filed PDF · View the filing
Soft demand outlook for April and May affecting pricing power
p. 15
“As of now, I anticipate the overall demand looks to be for right now, when I look at, say, April and now in May, a little subdued and soft.”
Vinod Bahety, page 15 of the filed PDF · View the filing
Poor contractor selection and lack of team leading to capex delays
p. 20
“One of the main reasons why we have not been able to deliver as per what our standards are is 2, 3 things. I think one is we did not choose the right contractor for execution.”
Karan Adani, page 20 of the filed PDF · View the filing
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