Archive · 6 Nov 2025
Ambuja Cements' Q2 Results Show Strong Growth Driven by Acquisitions
Ambuja Cements had a great quarter from July to September, selling more cement than ever before.
This is because they successfully merged the companies they recently bought, like Sanghi Industries and Penna Cement.
These merged companies are now selling cement under Ambuja's brands, reaching more customers and allowing them to charge better prices.
Even though the overall demand for cement wasn't super strong, Ambuja managed to sell more by offering premium cement options.
They also became more efficient by finding cheaper ways to get materials, improving how they transport cement, and using more solar power.
All these efforts helped their profits grow significantly, and they are planning to keep costs down in the future.
Ambuja Cements achieved its highest-ever Q2 sales volume at 16.6 million tonnes, a 20% year-on-year increase, largely due to integrating acquired companies.
Average cement realization saw a modest 3% year-on-year growth, supported by the higher pricing of integrated acquired capacities and demand for premium products.
Cost efficiencies were driven by synergies from acquired businesses, optimized logistics, and increased use of green power, leading to a 22% YoY reduction in raw material cost per tonne.
EBITDA surged by 58% year-on-year to ₹1,761 crore, with EBITDA per tonne remaining stable sequentially, outperforming industry peers.
The company plans to further reduce total costs to ₹4,000 per tonne by the end of FY26 through ongoing efficiency improvements and procurement synergies.
- Who
- Ambuja Cements
- What
- Reported strong Q2 results showing significant growth in sales volume, realizations, and profitability, driven by the consolidation of acquired companies and cost efficiencies.
- When
- Q2 FY25
- Where
- India
- Why
- Integration of Sanghi Industries, Penna Cement, and Orient Cement into Adani Cement brands, leading to increased sales volume, better pricing power, and cost reductions through optimized sourcing, logistics, and increased use of green energy.
Ambuja Cements' Q2 Performance
Factors Influencing Performance
Volume Growth
Ambuja Cements' Q2 Performance
Ambuja Cements posted its highest-ever Q2 sales volume at 16.6 million tonnes, up 20% year-on-year, significantly outpacing industry growth.
Factors Influencing Performance
Brokerages attribute this volume surge to the ramp-up and consolidation of acquired assets (Sanghi Industries, Penna Cement, Orient Cement), with these entities' sales now integrated into Adani Cement brands.
Realizations
Ambuja Cements' Q2 Performance
Average cement realization declined only 1% sequentially and grew 3% annually, performing steadier than anticipated despite muted demand and GST rate changes.
Factors Influencing Performance
Analysts attribute the steady realizations to higher pricing for the acquired assets, which have been integrated into Adani brands, and sustained demand for premium cement, which holds a 35% sales share.
Cost Efficiencies
Ambuja Cements' Q2 Performance
Total costs were reduced due to integration-led sourcing gains, green power adoption, and logistics optimization, with raw material cost per tonne falling 22% and logistics cost per tonne declining 7% year-on-year.
Factors Influencing Performance
These cost reductions were achieved even amidst volatile input markets, driven by consolidated network procurement, reduced lead distances, and increased solar capacity leading to higher renewable energy usage.
Profitability (EBITDA)
Ambuja Cements' Q2 Performance
EBITDA rose 58% year-on-year to ₹1,761 crore, with EBITDA per tonne at ₹1,060.
Factors Influencing Performance
Ambuja's EBITDA per tonne remained flat sequentially, outperforming major competitors like UltraTech, which saw a 22.5% sequential drop, attributed to Ambuja's control over fixed costs and sustained variable cost reduction.
- Company
- Ambuja Cements
- Period
- Q2 FY25
- Sales Volume
- 16.6 million tonnes (up 20% YoY)
- Average Realization
- +3% YoY
- EBITDA
- ₹1,761 crore (up 58% YoY)
- EBITDA per tonne
- ₹1,060
- Raw Material Cost per tonne
- Down 22% YoY
- Logistics Cost per tonne
- Down 7% YoY
Sources
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