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Ambuja Cements Limited (AMBUJACEM)

Construction Materials · Cement & Cement Products · NSE · Updated 16 June 2026

₹428.85 ↓ 22.05% (1Y)

🎯 Key Takeaways

Ambuja Cements is in a strategic growth phase following major acquisitions, transitioning from integration to scalable expansion. Management is focused on volume growth, cost leadership, and margin improvement through organic capex and operational efficiency, signaling a deliberate shift toward sustainable profitability in a consolidating industry.
Revenue grew 6.2% QoQ to ₹10,915 in Q4FY26.
⚠️ Integration risks from Orient and Penna Cement acquisitions remain unresolved, with one-time items and tax adjustments still impacting profitability.

Market Cap

₹1.07 L Cr

P/E Ratio

23.3

P/B Ratio

1.81

ROE

7.7%

ROCE

4.6%

Debt/Equity

0.00

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Ambuja Cements is in a strategic growth phase following major acquisitions, transitioning from integration to scalable expansion. Management is focused on volume growth, cost leadership, and margin improvement through organic capex and operational efficiency, signaling a deliberate shift toward sustainable profitability in a consolidating industry.

📰 What's Happening

The company completed the acquisition of 72.66% of Orient Cement and 99.94% of Penna Cement in FY26, significantly boosting scale and contributing to a 17% YoY rise in net profit to ₹2,647 crores. Management highlighted full integration efforts and announced FY'27 volume growth guidance of 8-10% to 80 million tonnes, driven by capacity optimization and cost reduction targets of INR4,250/tonne. Capex of INR7,500 crores in FY'26 supports organic expansion, with emphasis on cost leadership amid modest industry growth of 5-5.5%.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q1FY25	Q2FY25	Q3FY25	Q4FY25	Q1FY26	Q2FY26	Q3FY26	Q4FY26
Revenue	8,311	7,516	9,329	9,889	10,289	9,174	10,277	10,915
Operating Profit	1,635	1,329	3,064	2,576	2,257	1,795	1,425	1,595
OPM %	15.4%	14.8%	18.4%	18.9%	19.1%	19.2%	13.2%	13.4%
Net Profit	790	473	2,620	1,282	970	2,302	367	1,857
EPS	₹2.68	₹1.85	₹8.59	₹3.88	₹3.20	₹7.15	₹0.82	₹7.41

Quarterly trends show volatile profitability: Q2FY26 delivered strong margins (OPM 19.2%) and NP of ₹2,302 crores, but Q3FY26 saw a sharp NP decline to ₹367 crores due to one-time items and tax adjustments, despite stable operating performance. This reflects the impact of complex accounting adjustments from acquisitions and integration costs. However, FY'26 net profit rose 17% YoY to ₹2,647 crores, indicating underlying resilience. The rebound in Q4FY26 (NP ₹1,857 crores, OPM 13.4%) suggests stabilization in operations post-integration.

🔮 Management Outlook & What's Next

Management expects sustained volume growth of 8-10% in FY'27, targeting 80 million tonnes, supported by capacity optimization and cost reduction initiatives. They aim to achieve INR4,250/tonne cost structure by FY'27, down from INR4,400/tonne in FY'26, despite only 5-5.5% industry growth. Capex of INR6,000-6,500 crores in FY'27 underscores continued investment in organic expansion. No formal earnings guidance beyond volume and cost targets was provided, but margin improvement is positioned as a key lever for value creation.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	2024-2025	2025-2026	2025-2026	2025-2026	2025-2026
Equity Capital	493	493	494	494	494
Reserves	52,951	—	55,752	—	58,853
Borrowings	27	—	332	—	53
Total Liabilities	17,134	13,354	19,217	14,380	17,760
Fixed Assets	26,121	—	33,526	—	35,284
Investments	1,851	—	42	—	40
Total Assets	80,945	87,489	88,710	89,482	89,607

The balance sheet reflects aggressive capital deployment post-acquisition, with total assets rising to ₹89,607 crores and equity increasing to ₹71,846 crores. Borrowings remain low at ₹53 crores, indicating minimal leverage, while reserves grew significantly, suggesting internal fund generation. The company used ₹9,393.22 crores in investing activities, primarily for acquisitions, and generated strong operating cash flows, supporting both integration and dividend commitments without increasing debt.

💰 Cash Flow Statement (₹ Cr)

Item	2020-2021	2021-2022
Operating	+4,833	+1,625
Investing	-1,318	-724
Financing	-3,956	-454
Net Cash Flow	—	—

⚖️ Peer Comparison — Cement & Cement Products

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
UltraTech Cement Limited	3.38 L Cr	44.1	12.3%	10.8%	0.33
Grasim Industries Limited	2.00 L Cr	21.1	4.9%	4.6%	1.88
Ambuja Cements Limited	1.07 L Cr	23.3	4.6%	7.7%	0.00
SHREE CEMENT LIMITED	90,094	73.6	—	—	—
JK Cement Limited	42,219	58.6	—	—	—
Dalmia Bharat Limited	32,402	57.5	—	—	—
ACC Limited	25,592	12.0	11.0%	10.4%	0.00
The Ramco Cements Limited	21,650	57.2	—	—	—
JSW Cement Limited	16,793	0.0	—	—	—
The India Cements Limited	12,401	-56.7	—	—	—

🔗 Peer Stock Analyses

ULTRACEMCO GRASIM SHREECEM JKCEMENT DALBHARAT

⚠️ Risk Factors

1. Integration risks from Orient and Penna Cement acquisitions remain unresolved, with one-time items and tax adjustments still impacting profitability. 2. Margin pressure persists despite cost targets, as OPM declined in Q3FY26 despite volume growth, indicating execution challenges. 3. Regulatory and compliance risks, including SEBI penalties for insider trading, reflect governance scrutiny. 4. Slow industry growth (5-5.5%) limits organic expansion scope, making cost control critical to sustaining profitability.

📋 Recent Filings

🧠 Analyst's Read

Ambuja Cements is executing a clear post-acquisition strategy centered on scale, cost leadership, and volume growth, but profitability remains volatile due to integration and accounting complexities. Investors should monitor margin trends, execution of cost targets, and clarity on FY'27 earnings guidance in upcoming filings.

Based on filing content and financial data. Not a recommendation.

✨ Deep Dive with AI on AMBUJACEM

Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-06-16.