Orient Cement Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Orient Cement 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 annual sales volume of 73.7 million tonnes, up 16% year-on-year, with normalized EBITDA of INR6,539 crores, up 31%, and PAT of INR2,647 crores, up 17%. Management said cost per tonne rose to INR4,500 in the March quarter due to higher freight, packing, fuel and branding costs, partly linked to newly acquired Sanghi and Penna assets running below expected utilization. For FY27, management guided to consolidated volumes of around 80 million tonnes, a moderated capacity expansion timeline, and a targeted cost reduction of INR250 per tonne from the March quarter peak.
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
EBITDA: INR6,539 crores, up 31% (FY26)
p. 3
“And on a normalized basis, the EBITDA of INR6,539 crores, up 31% at INR887 per metric ton, which is on a PMT basis, up 12% and the PAT of INR2,647 crores, up 17%.”
Vinod Bahety, page 3 of the filed PDF · View the filing
PAT: INR2,647 crores, up 17% (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
Premium cement share of trade sales: 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
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
Quarterly 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
March month cost: INR4,100 a tonne (March 2026)
p. 13
“We had basically hit it INR4,100 for the month of March, Prateek”
Vinod Bahety, page 13 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 sales share: 74% (Q4 FY26)
p. 4
“we have also improved our trade sales to 74% compared to in December quarter of '25, it was 68%”
Vinod Bahety, page 4 of the filed PDF · View the filing
Full year RMX EBITDA: INR300 crores (FY26)
p. 20
“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
Green power share: 32% (Q4 FY26)
p. 4
“My green power share increased almost 32% now in Q4 compared to 26% before.”
Vinod Bahety, page 4 of the filed PDF · View the filing
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
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, ~8% growth · FY27
stated firmly 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
Industry volume growth — 5% to 5.5% · FY27
stated conditionally by Vinod Bahety
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
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
Cost per tonne reduction — INR4,250 a tonne · FY27
stated firmly by Vinod Bahety
p. 19
“So Rajesh, thank you. 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 reduction (2-year plan) — INR500 a tonne cumulative · next 2 years
stated firmly by Karan Adani
p. 16
“But let me just add that cost, we are looking at roughly INR250 a tonne reduction this year and then another reduction of INR250 next year as well.”
Karan Adani, page 16 of the filed PDF · View the filing
Long-term cost target — INR3,650
stated as an aspiration by Karan Adani
p. 16
“But that does not mean that we don't have the runway to go to the earlier target that we have said.”
Karan Adani, page 16 of the filed PDF · View the filing
Capacity expansion timeline — 140-155 million tonnes target pushed back · FY30 (from FY28)
stated conditionally 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
FY27 capex — INR6,000 crores to INR6,500 crores · FY27
stated conditionally by Vinod Bahety
p. 8
“So 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
Q1 FY27 cost — around INR4,500 a tonne · Q1 FY27
stated conditionally by Vinod Bahety
p. 19
“Almost like INR4,500, I would peg it for say, Q1.”
Vinod Bahety, page 19 of the filed PDF · View the filing
Raw material and green energy cost savings — INR150 to INR200
stated conditionally 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
Utilization improvement at Sanghi and Penna — 5% to 10% increase
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
Debottlenecking capacity — 15 million tonnes
stated conditionally by Karan Adani
p. 16
“So those still continues. I think it's just timing, which will differ based on where we get the maximum return of the -- return on the investment.”
Karan Adani, page 16 of the filed PDF · View the filing
New clinker lines at Mundra and Assam — 2 million tonnes each · 24 to 28 months
stated firmly by Vinod Bahety
p. 20
“Let's say 24 to 28 years, 28 months is what we are targeting.”
Vinod Bahety, page 20 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
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 visibility comes from stabilizing acquired Sanghi and Penna assets and new capacities commissioning through September.
Answered by Vinod Bahety
Asked by Navin Sahadeo: Why is volume growth muted this quarter versus the FY27 guidance of 80 million tonnes against a softer 5% 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.
Answered by Vinod Bahety
Asked by Raashi Chopra: What was the cost for the quarter versus the full year figure of INR4,400?
p. 7
“So I would like -- let us say that a normalized was almost INR4,250 and plus another INR250, which we have seen increases.”
Vinod Bahety, page 7 of the filed PDF · View the filing
Management said price levels were sustained near INR254 a bag with the premiumization journey just beginning.
Answered by Vinod Bahety
Asked by Indrajit Agarwal: Why has realization barely moved quarter-on-quarter versus peers up 1.5-2%?
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 it to branding spend, higher repairs and maintenance especially on acquired assets, and higher heat consumption.
Answered by Vinod Bahety
Asked by Jashandeep Singh Chadha: Why is Ambuja's cost structure and fixed cost rising more than peers?
p. 10
“Second is in terms of higher repairs and maintenance costs. And you're right that ideally one should do it during the off seasons like monsoons, but not all the machines can be done during that period.”
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 is the target utilization for Sanghi, Orient and Penna in FY27?
p. 11
“So like Orient, for example, is operating at full capacity. So far as Sanghi is concerned, I will peg myself at almost like 65% to 70%.”
Vinod Bahety, page 11 of the filed PDF · View the filing
Management said the guidance is fully controllable internally and any miss would be due to execution, not external factors.
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 the earlier INR4,000 figure referred to an exit-month aspiration, not the quarterly average, and cited acquired-asset issues and packing bag disruptions.
Answered by Vinod Bahety
Asked by Prateek Kumar: How did the quarter's average cost reach INR4,500 given earlier commentary of INR4,000-4,100?
p. 14
“Now basically. Therefore, while the average would still be higher than not at INR4,000. Therefore, please don't mistaken with INR4,000 as average for the March quarter, number one.”
Vinod Bahety, page 14 of the filed PDF · View the filing
Management said demand is subdued so price pass-through is uncertain, and the company will instead focus on internal cost control.
Answered by Vinod Bahety
Asked by Pinakin: Will the industry raise cement prices to pass on cost inflation, or will margins deteriorate further?
p. 15
“So that is like, for example, right now, the situation is. But yes, cost on the other side has gone up by at least INR25.”
Vinod Bahety, page 15 of the filed PDF · View the filing
Management said it is not abandoning the target, just giving a realistic near-term number while multiple cost levers remain to be executed.
Answered by Karan Adani
Asked by Rahul Gupta: Is the company abandoning its earlier cost target of INR3,650 given the new INR500 reduction guidance?
p. 16
“But that does not mean that we don't have the runway to go to the earlier target that we have said. We know what are the steps we need to take.”
Karan Adani, page 16 of the filed PDF · View the filing
Management cited underperformance versus commitments and listed five focus areas centered mainly on cost reduction.
Answered by Karan Adani
Asked by Ritesh Shah: What prompted the capex and strategy reset, and what are the key monitorables?
p. 17
“But predominantly, if I would say, 80% of it is to do with the cost, and we really need to get our act in order in terms of to make sure that we are able to reduce our costs.”
Karan Adani, page 17 of the filed PDF · View the filing
Management said it is a partial reset of timeline rather than of target, acknowledging execution shortfalls.
Answered by Karan Adani
Asked by Amit Murarka: Is there a reset in the earlier ambition to double capacity and become industry leader?
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 cited poor contractor selection, lack of an established execution team at acquisition time, and incomplete engineering before project starts, plus breakdowns concentrated in acquired Penna and Sanghi assets.
Answered by Karan Adani
Asked by Raghav Maheshwari: Why have capex projects like Maratha been delayed and why are there recurring 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 and extended weather conditions affecting 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
Lower utilization at newly acquired Sanghi and Penna assets
p. 4
“The newly acquired assets, particularly Sanghi and Penna, they witnessed lower utilization levels.”
Vinod Bahety, page 4 of the filed PDF · View the filing
Higher freight, packing and fuel costs from West Asia conflict and geopolitical disruption
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 procurement costs
p. 4
“And some of the other issues like the raw material costs, which we could have improved in terms of the fly ash, but pending some of the railway infrastructure, which will be completed in the coming months”
Vinod Bahety, page 4 of the filed PDF · View the filing
Expected inflationary pressure and weak monsoon dampening cement demand
p. 6
“However, with the expected inflationary pressure, weak monsoon and cement demand is expected to remain a little soft.”
Vinod Bahety, page 6 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 at acquired Penna and Sanghi plants increasing repair costs
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
Subdued demand outlook for April and May
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
Fast-moving global energy and geopolitical dynamics creating cost uncertainty
p. 5
“Since there are -- these are like fast-moving global situations and dynamisms over the energy costs and other basically expected hikes in the fuel and diesel and all, therefore, it will be very difficult to provide any long-term estimates for right now till the time things stabilize over the next 2, 3 quarters.”
Vinod Bahety, page 5 of the filed PDF · View the filing
Capex execution delays due to contractor selection and incomplete engineering
p. 21
“Number three is a lot of these projects were started without full engineering being done in place.”
Karan Adani, page 21 of the filed PDF · View the filing
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