Ambuja Cements Ltd.Margin Expansion Leads Value Strategy

Ambuja Cements delivered a strong margin performance in Q1 FY27 despite deliberately pruning low-margin volumes, reporting revenue of ₹9,500 crore and operating EBITDA of ₹1,589 crore.

EBITDA margin expanded significantly by 331 basis points sequentially to 16.7%, while net cost per ton improved ₹206 to ₹4,241, already ahead of the full-year FY27 target of ₹4,250. The company's strategic pivot from volume to value resulted in a 7% overall volume decline, driven by 21% reduction in low-margin non-trade sales, while trade sales share improved to 78% from 74%. Premium products now comprise 34% of trade sales.

Renewable energy capacity surged nearly 500 MW year-on-year to 973 MW, reducing power costs by ₹1 per unit. Management reaffirmed 8% volume growth guidance for FY27, with July trade volumes already up 8% year-on-year, validating the strategic shift. The company expects to commission 10.2 million tons of new capacity, reaching 119 million tons by FY27-end, while targeting ₹4,000 per ton net cost by FY28 through operational efficiencies and green energy expansion.