Orient Cement Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Orient Cement 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 a 331 basis point improvement in EBITDA margin to 16.7%, alongside a net operating cost reduction of Rs 206 per metric ton sequentially. Management said trade volumes declined 2% year-on-year and non-trade volumes fell 21%, attributing this to a deliberate shift toward higher-margin trade sales, while overall capacity utilization stood at 65%. The company also discussed temporary suspension of some older manufacturing capacity, progress on its expansion projects, and cost-saving initiatives across logistics, renewable power and clinker factor reduction.
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%”
Vinod Bahety, page 5 of the filed PDF · View the filing
EBITDA per ton: INR931 (Q1 FY27)
p. 5
“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% (Q1 FY27 Y-o-Y)
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 improvement: 3% to 64% (Q1 FY27)
p. 4
“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
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
Capex for 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
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
Green power units sold: 45 crore units (Q1 FY27)
p. 7
“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
Green power sales 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
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
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.
Net operating cost — INR4,250 per metric 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
Cost savings from 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
Installed capacity — 119 million tons · by 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
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
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
Green power share — 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
AFR (TSR) utilization — 12% to 15% · this fiscal year
stated conditionally 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
AFR (TSR) utilization long-term target — 25%
stated as an aspiration by Vinod Bahety
p. 16
“We have highlighted to you before that our target is to achieve 25% of the AFR down the line.”
Vinod Bahety, page 16 of the filed PDF · View the filing
Cost per ton — INR4,000 or below · by end of FY28
stated conditionally by Vinod Bahety
p. 23
“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 addition rate — 8 million to 10 million tons per year · FY28 onwards
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 — 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
Maratha clinker line commissioning — Q1 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
Additional lead distance reduction savings — INR35 per ton
stated conditionally by Vinod Bahety
p. 4
“One of them, for example, reduction in the lead distance, we are expecting another 15 kilometers, which will deliver additional INR35”
Vinod Bahety, page 4 of the filed PDF · View the filing
Target utilization on expanded capacity base — 70% to 75%
stated as an aspiration 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 were already up 8% in July and reiterated an 8% full-year trade growth guidance while continuing to selectively pursue non-trade in specific markets.
Answered by Vinod Bahety
Asked by Navin Sahadeo: Given the volume decline this quarter from prioritizing value over volume, will FY27 see muted overall volume growth?
p. 6
“And therefore, like more the way we focus on value terms, I think in terms of overall revenue, it will commensurate and keep us giving that elbow advantage compared to the competition.”
Vinod Bahety, page 6 of the filed PDF · View the filing
Management said trade market share was sustained and improved, while the non-trade reduction was a deliberate action plan.
Answered by Vinod Bahety
Asked by Navin Sahadeo: Will lost market share in Q1 be recouped over the balance nine months?
p. 7
“Navin, I would say that market share has to be looked upon on an overall basis.”
Vinod Bahety, page 7 of the filed PDF · View the filing
Management described Orient as already well-utilized needing minimal investment, Penna requiring channel investment of Rs100-150 crore, and Sanghi undertaking a jetty expansion investment of about Rs600 crore.
Answered by Vinod Bahety
Asked by Manish Somaiya: When will Sanghi, Penna and Orient reach normalized utilization and EBITDA per ton, and how much capex is needed?
p. 8
“Orient, for example, is quite well in terms of its capacity utilization as well as margin.”
Vinod Bahety, page 8 of the filed PDF · View the filing
Management said normalization depends on geopolitical de-escalation but that internal cost initiatives of Rs130-150 per ton would offset a potential Rs100 per ton geopolitical cost rise.
Answered by Vinod Bahety
Asked by Manish Somaiya: When will the sequential cost pressure from geopolitical escalation normalize?
p. 9
“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
Management attributed it to accounting treatment differences such as Incoterms and netting of expenditures against NSP, saying pricing improvement would follow brand and premium positioning.
Answered by Vinod Bahety
Asked by Indrajit Agarwal: Why has ASP growth been among 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 denied any brand merger plans, clarifying only a company merger has been announced.
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 operating company Ambuja carries no debt and the ICDs are within approved shareholder limits carrying an 8% coupon, tied to the ongoing merger process.
Answered by Vinod Bahety
Asked by Ritesh Shah: How should the ICDs from ACC and Orient to the parent be interpreted given Ambuja's zero debt?
p. 15
“So the operating company, Ambuja has no debt.”
Vinod Bahety, page 15 of the filed PDF · View the filing
Management said the company is targeting 12-15% TSR this fiscal year with further improvement expected in subsequent quarters.
Answered by Vinod Bahety
Asked by Ritesh Shah: What is the roadmap to reach the 2030 TSR target of 23% from the current 7%?
p. 16
“AFR, for example, while we are I agree with you that we are on a lower side at, say, 7%, and that is one of our key focus area to improve the this component of KPI, and you will see a good progress in coming quarters.”
Vinod Bahety, page 16 of the filed PDF · View the filing
Management gave approximate splits of North 25%, West 30%, East 25%, and Center and South each 10%.
Answered by Vinod Bahety
Asked by Amit Murarka: What is the regional volume mix in 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 suspension period of six months.
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
Management said approximately 1 million tons of low and negative EBITDA volume was curtailed, with efforts focused on improving costs and shifting volumes to trade rather than expecting full recovery.
Answered by Vinod Bahety
Asked by Rahul Gupta: How much volume was cut in the South region and how much from Penna and Orient?
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 maintained that the acquisitions are assets that will deliver results going forward.
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 attributed this to disruptions from diesel shortages and logistics issues in certain regions that offset the benefit of shorter lead distance.
Answered by Vinod Bahety
Asked by Kunal Shah: Why has freight per ton remained stable despite lower lead distance year-on-year?
p. 25
“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 that the shift to non-trade at acquired assets often happened at negative or marginal EBITDA, dragging performance, and that sustainable EBITDA matters more than maximizing volume.
Answered by Karan Adani
Asked by Satyadeep Jain: What has been the learning journey moving volumes from trade to non-trade and back, and why not maximize non-trade volumes at 65% 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 the ultimate goal is 100% in-house consumption, with external sales being a transition measure due to grid connectivity constraints at some plants.
Answered by Karan Adani
Asked by Satyadeep Jain: What is the rationale for selling RE power and fly ash externally instead of consuming internally given existing agreements?
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
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 cost increase from continuing geopolitical escalation
p. 9
“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
Disruptions in diesel availability and packing bag availability affecting the quarter
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
NSP driven by market forces beyond company control
p. 10
“And I think price is all market force, which is well appreciated, but I would still bring the focus back to cost and which is something which is absolutely in our control”
Vinod Bahety, page 10 of the filed PDF · View the filing
Low margin, negative EBITDA volumes in certain markets like South necessitating volume cuts
p. 4
“So far as South is concerned, we have consciously reduced our lower margin volumes”
Vinod Bahety, page 4 of the filed PDF · View the filing
Old ACC facilities requiring upgrades leading to temporary closures
p. 28
“when you acquired ACC and Ambuja, obviously, like the whole world knew that ACC has these old assets. And at some stage, there will be a situation of improving and upgrading them”
Vinod Bahety, page 28 of the filed PDF · View the filing
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