Ambuja Cements Limited Earnings Summary — Q1 FY2027
Ambuja Cements Reports Resilient Q1 Performance Amid Strategic Amalgamations and Capacity Expansion
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 13.0% sequentially in Q1 FY2027.
- Revenue of ₹9,500 Cr is 7.7% lower year-on-year.
- Revenue has compounded at 3.0% annualised over the last 10 quarters.
- Net profit of ₹577 Cr is 33.6% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -23.4% annualised across the period.
- Operating margin stands at 16.7% in Q1 FY2027.
- Operating margin compressed by 233 bps year-on-year.
- Over the last two years operating margin has expanded by 148 bps.
- PBT margin is 8.9%.
- Expenses grew -5.0% against revenue growth of -7.7%.
- Operating profit of ₹1,589 Cr is 19.0% lower year-on-year.
- Operating leverage has been under pressure recently.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 44/100 (Moderate) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 9,500 | 10,916 | 10,277 | 9,174 | 10,289 | 9,981 | 9,411 | 7,552 | 8,392 | 8,894 |
| Expenses | Stable | 7,911 | 9,451 | 8,924 | 7,414 | 8,328 | 8,113 | 7,700 | 6,441 | 7,112 | 7,195 |
| Operating Profit | Stable | 1,589 | 1,465 | 1,353 | 1,761 | 1,961 | 1,868 | 1,712 | 1,111 | 1,280 | 1,699 |
| Operating Margin | Stable | 16.7% | 13.4% | 13.2% | 19.2% | 19.1% | 18.7% | 18.2% | 14.7% | 15.3% | 19.1% |
| Other Income | Volatile | 150 | 136 | 77 | 39 | 300 | 713 | 1,355 | 220 | 358 | 448 |
| Interest | Volatile | 57 | 21 | 59 | 77 | 67 | 14 | 67 | 67 | 68 | 93 |
| Depreciation | Improving | 834 | 1,053 | 911 | 885 | 767 | 694 | 607 | 520 | 476 | 459 |
| Profit Before Tax | Volatile | 848 | 527 | 460 | 838 | 1,427 | 1,872 | 2,393 | 744 | 1,094 | 1,595 |
| Tax | Volatile | 188 | -1,330 | 58 | -1,465 | 386 | 521 | -270 | 248 | 311 | 74 |
| Net Profit | Volatile | 577 | 1,830 | 240 | 1,766 | 869 | 1,025 | 2,158 | 480 | 640 | 1,051 |
| Net Margin | Volatile | 6.1% | 16.8% | 2.3% | 19.3% | 8.4% | 10.3% | 22.9% | 6.3% | 7.6% | 11.8% |
Key Takeaways
- Revenue increased 2.7% YoY to ₹6,320 crore, though Net Profit fell 37% YoY to ₹504 crore following significant tax adjustments in the prior quarter.
- The company completed the acquisition of Orient Cement (72.66% stake) and integrated Penna Cement, resulting in restated figures for comparative periods.
- Capacity expansion remains a priority, with the company aiming for 119 million tonnes by the end of FY2027 through new grinding units and optimization.
- Management noted temporary suspension of operations at select facilities to optimize capital allocation and enhance long-term operational efficiency.
- Operating margins showed sequential improvement to 9.9% despite higher freight and packing costs attributed to West Asia geopolitical tensions.
- Trade sales were pushed to 74% of total volume, with premium cement accounting for 36% of trade sales, reflecting a successful premiumization strategy.
Management Guidance
Management expects consolidation volumes to grow by approximately 8% to 80 million tonnes in FY2027, despite an industry growth outlook of 5-5.5% due to inflationary pressures and monsoon uncertainty.
Sentiment Shift
Stable
While net profit declined sharply QoQ, this was largely due to a massive ₹1,462 Cr tax credit in the prior period. Core operations remain resilient with capacity ramp-ups on track.
Outlook
The company is recalibrating its capacity expansion to reach 119 MTPA by FY2027, focusing on green energy (targeting 32% share) and logistics optimization to offset energy cost volatility.
From the Annual Report (Key Quotes)
“FY '27, our focus firmly remains on streamlining the operations and margin expansion.”
“We have a substantial good headroom to ramp up volume from our overall existing assets.”
“Our journey to achieve cost of almost INR 4,000 a tonne by March '26 exit was met with INR 4,400, reflecting some disappointments in turnaround time for acquired assets.”
Official Quarterly Documents
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This summary is AI-generated from Ambuja Cements Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.