Ambuja Cements Q2 profit plunges 90% as tax reversal hits earnings, revenue rises 10%

Ambuja Cements, part of the Adani group, posted a net profit of Rs 114 crore for the September-ended quarter of FY27, a 90% decline from Rs 1,158 crore a year earlier. The drop was attributed to a reversal of an income-tax provision of Rs 1,697 crore recorded in the comparable period.

Revenue from operations increased 10% to Rs 6,113 crore, driven by higher trade volumes and a larger share of premium products. Cement sales volume held steady at 16.5 million tonnes, while trade volumes rose 8.6% and the trade share climbed to 74%.

Shareholders approved the proposed amalgamation of ACC and Orient Cement with Ambuja Cements, advancing the company’s One Cement Platform initiative. The merger plans remain subject to regulatory clearances and are expected to be completed in FY27.

On a consolidated basis, EBITDA margins fell to 13.8% from 19.2% a year ago. The company cited challenging near-term conditions, including geopolitical tensions, global uncertainty and higher energy costs, following monsoon-related headwinds.

"We remain well-positioned to deliver sustainable, value-led growth," said Vinod Bahety, Whole-time Director and CEO, referring to the firm’s focus on quality growth, premiumisation and operational efficiency.

Ambuja Cements highlighted ongoing capacity additions, having commissioned 4.6 million tonnes per month (MTPA) in the quarter, with another 5.6 MTPA slated for the second half of FY27. The firm aims to achieve a cost target of Rs 4,250 per tonne by FY27 and expects volume growth to outpace the industry in the coming months.