Ambuja Cements, the Adani Group’s cement and building materials arm, posted a 9% year-on-year decline in net profit attributable to owners for the fourth quarter of FY25, weighed down by higher tax expenses. The profit for the quarter stood at ₹956.3 crore, down from ₹1,050.6 crore in the same period last year. Despite the decline, the figure surpassed Bloomberg’s estimate of ₹735 crore.
The company’s consolidated net profit for Q4FY25 came in at ₹1,282 crore, marking a 16% decline from the previous year. Revenue from operations rose by 11.6% YoY to ₹9,802.5 crore, slightly below analysts’ expectations of ₹9,903 crore.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 12% to ₹1,781.4 crore, beating street estimates of ₹1,645 crore. However, EBITDA per tonne slipped 2% to ₹1,001. The EBITDA margin for the quarter stood at 18.2%.
Ambuja attributed part of the quarterly performance to the consolidation of Penna Cement’s financials beginning August 2024, noting that the current year’s results are not directly comparable to FY24. However, the company recorded its highest-ever quarterly sales volume at 18.7 million tonnes, up 12.65% year-on-year.
For the full fiscal year, the company reported ₹33,677.7 crore in revenue from operations and ₹1,145.1 crore in net profit attributable to owners.
Ambuja Cements has been aggressively expanding its capacity. Following the acquisition of Orient Cement, the company’s installed cement capacity crossed 100 million tonnes per annum (MTPA) as of April 29. It now targets a capacity of 118 MTPA by the end of FY26 and aims to reach 140 MTPA by FY28.
“To support this growth, we plan to invest ₹6,000 crore in capex during FY26, and an additional ₹2,500–3,000 crore will go towards efficiency improvements,” said Vinod Bahety, Whole-Time Director and CEO of Ambuja Cements, during the post-earnings call.
The company’s financial position remains strong, with its net worth increasing by ₹12,969 crore to ₹63,811 crore in FY25. Cash and cash equivalents stood at ₹10,125 crore as of March 31. The board has recommended a dividend of ₹2 per share, maintaining last year’s payout.
Cement consumption in India grew by 6.5–7% during the March quarter, supported by robust construction activity, rising rural demand, a buoyant real estate market, and increased government infrastructure spending. For FY25, overall consumption growth is estimated at 4–5%.
Looking ahead, Ambuja expects cement demand in FY26 to benefit from continued government investment and housing support under the Union Budget. The company anticipates national cement demand to grow between 7% and 8% in the current fiscal.
Despite short-term profitability pressures, Ambuja Cements remains firmly on a growth trajectory, backed by strategic acquisitions, capacity expansions, and favorable macroeconomic trends in the construction and infrastructure sectors.
Also Read: India Cements Swings to Profit in Q4 Despite Revenue Dip; Approves Major Amalgamation Plan
Ambuja Cements, the Adani Group’s cement and building materials arm, posted a 9% year-on-year decline in net profit attributable to owners for the fourth quarter of FY25, weighed down by higher tax expenses. The profit for the quarter stood at ₹956.3 crore, down from ₹1,050.6 crore in the same period last year. Despite the decline, the figure surpassed Bloomberg’s estimate of ₹735 crore.
The company’s consolidated net profit for Q4FY25 came in at ₹1,282 crore, marking a 16% decline from the previous year. Revenue from operations rose by 11.6% YoY to ₹9,802.5 crore, slightly below analysts’ expectations of ₹9,903 crore.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 12% to ₹1,781.4 crore, beating street estimates of ₹1,645 crore. However, EBITDA per tonne slipped 2% to ₹1,001. The EBITDA margin for the quarter stood at 18.2%.
Ambuja attributed part of the quarterly performance to the consolidation of Penna Cement’s financials beginning August 2024, noting that the current year’s results are not directly comparable to FY24. However, the company recorded its highest-ever quarterly sales volume at 18.7 million tonnes, up 12.65% year-on-year.
For the full fiscal year, the company reported ₹33,677.7 crore in revenue from operations and ₹1,145.1 crore in net profit attributable to owners.
Ambuja Cements has been aggressively expanding its capacity. Following the acquisition of Orient Cement, the company’s installed cement capacity crossed 100 million tonnes per annum (MTPA) as of April 29. It now targets a capacity of 118 MTPA by the end of FY26 and aims to reach 140 MTPA by FY28.
“To support this growth, we plan to invest ₹6,000 crore in capex during FY26, and an additional ₹2,500–3,000 crore will go towards efficiency improvements,” said Vinod Bahety, Whole-Time Director and CEO of Ambuja Cements, during the post-earnings call.
The company’s financial position remains strong, with its net worth increasing by ₹12,969 crore to ₹63,811 crore in FY25. Cash and cash equivalents stood at ₹10,125 crore as of March 31. The board has recommended a dividend of ₹2 per share, maintaining last year’s payout.
Cement consumption in India grew by 6.5–7% during the March quarter, supported by robust construction activity, rising rural demand, a buoyant real estate market, and increased government infrastructure spending. For FY25, overall consumption growth is estimated at 4–5%.
Looking ahead, Ambuja expects cement demand in FY26 to benefit from continued government investment and housing support under the Union Budget. The company anticipates national cement demand to grow between 7% and 8% in the current fiscal.
Despite short-term profitability pressures, Ambuja Cements remains firmly on a growth trajectory, backed by strategic acquisitions, capacity expansions, and favorable macroeconomic trends in the construction and infrastructure sectors.
Also Read: India Cements Swings to Profit in Q4 Despite Revenue Dip; Approves Major Amalgamation Plan
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