Ambuja Cements Reports Q4 Consolidated Net Profit Decline Amid Record Revenue and Contracting Margins

Ambuja Cements Ltd Reports Decline in Consolidated Profit Amid Rising Revenue

Ambuja Cements Ltd reported a decline in its consolidated profit after tax for the fiscal fourth quarter, with normalised PAT coming in at Rs 569 crore, compared with Rs 856 crore in the year-ago period. The company's revenue for the quarter rose to a record high, increasing 9 percent year-on-year to Rs 10,915 crore from Rs 9,981 crore, supported by a 10 percent growth in sales volumes to 19.9 million tonnes.

However, operating performance remained under pressure. EBITDA declined to Rs 1,464 crore from Rs 1,868 crore a year ago, while EBITDA margins contracted sharply to 13.4 percent from 18.7 percent in the corresponding quarter last year. The company attributed the margin pressure to higher fuel and diesel costs, packaging constraints, and rupee depreciation amid the ongoing West Asia conflict, with the impact expected to continue into the first half of FY27.

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Ambuja Cements Ltd is taking steps to mitigate costs through fuel mix optimisation, increased renewable energy usage, and logistics efficiencies. Operationally, the company reported its highest-ever quarterly sales volume and revenue during the quarter and maintained a debt-free balance sheet. The company also made progress on integration and capacity expansion, including the amalgamation of Sanghi and Penna Cement.

Looking ahead, Ambuja expects cement demand growth to remain soft at around 5 percent in FY27, citing geopolitical challenges and an early forecast of a below-normal monsoon. On a standalone basis, the company had earlier reported a sharp rise in net profit to Rs 1,644 crore from Rs 555 crore a year ago, aided by a tax credit of Rs 1,462 crore versus a tax expense of Rs 386 crore last year. Standalone revenue rose 5.5 percent to Rs 6,972 crore, while EBITDA declined 38.6 percent to Rs 646.5 crore. Margins contracted to 9.3 percent from 16 percent year-on-year.