Q2 2026 Ambuja Cements Ltd Earnings Call Transcript
Key Points
- Ambuja Cements Ltd (BOM:500425) reported a significant increase in EBITDA, reaching INR 1,060 per metric tonne, a 32% year-on-year growth.
- The company achieved a record sales volume of 16.6 million tonnes, marking a 20% year-on-year increase, significantly outpacing the industry average growth of 4%.
- Ambuja Cements Ltd (BOM:500425) has successfully reduced total costs by 5% year-on-year, driven by lower kiln and fuel costs.
- The company is expanding its capacity through debottlenecking initiatives, adding 15 million tonnes at a lower CapEx of $48 per tonne, and aims to reach a total capacity of 155 million tonnes by FY28.
- Ambuja Cements Ltd (BOM:500425) remains debt-free with a strong credit rating of Crisil AAA stable and short-term A1+.
- The company experienced an increase in working capital by INR 2,000 crore in the first half, attributed to higher receivables and inventory levels.
- Despite the cost reductions, other expenses per tonne increased due to maintenance and sales promotion activities.
- The integration of acquired assets like Penna and Sanghi is still in progress, with these assets currently contributing lower EBITDA compared to the company's base capacity.
- There are concerns about the sustainability of the 20% volume growth, as the acquired assets mature and the base increases.
- Some project timelines have been delayed due to external factors like torrential rains, affecting the commissioning of new capacities.
Ladies and gentlemen, good day, and welcome to the Ambuja Cement Limited Q2 and FY26 earnings conference call, hosted by BNP Paribas Securities. Please note that this conference is being recorded. I now hand the conference over to Mr. Nirransh Jain. Thank you, and over to you, sir.
Yes. Thank you. Good evening, everyone. On behalf of BNP Paribas Securities India, we welcome you all to the Q2 FY26 earnings call of Ambuja Cements Limited. Without any further delay, I'll hand over the call to Mr. Deepak Balwani, Head of Investor Business. Over to you, sir.
Yes, thank you. On behalf of Ambuja Cements, I'm pleased to welcome all the participants to our quarter two FY26 earnings call. Before we start, please note that this call may include forward-looking statements based on our current beliefs and expectations. These are not guarantees of future performance and may involve unfortune risks and uncertainties. We remain
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