Ambuja Cements Reports Strong Start to FY 2026 with Solid Growth and Operational Gains

Ambuja-Cements
Image Courtesy: Ambuja Cements

Ambuja Cements, ranked as the world’s ninth largest building materials company and part of the Adani Group portfolio, has announced strong financial and operational performance for the first quarter ending June 30, 2025. The company kicked off the new fiscal year with growth driven by increased volumes, focused value creation, channel engagement, improved efficiencies, and seamless integration of recently acquired assets.

By embracing innovative business strategies, advanced technologies, sustainability initiatives, and active community involvement, Ambuja Cements is setting new benchmarks in the cement sector. Vinod Bahety, Whole Time Director & CEO, highlighted, “Our Q1 results go beyond numbers; they reflect a transformation focused on speed, scale, and sustainability. We are delivering value through premium, solution-oriented products, optimized supply chains, and strong brand presence across key markets, supported by successful asset integration. As we target a 140 MTPA capacity by FY28, our commitment to redefining cement as a customer-centric solutions business remains firm.”

Recent initiatives such as NirmAAAnotsav (in collaboration with CREDAI), Gruhalaxmi, Dhanvarsha, and the Super Sunday program have garnered positive feedback from stakeholders. The acquisition and integration of Orient’s assets were completed ahead of schedule, contributing significantly to capacity utilization and profitability. Ambuja Cements was the primary cement supplier for the world’s highest single-arch Chenab railway bridge, reinforcing its reputation for quality and reliability.

Operational performance remained strong, driven by enhanced reliability across manufacturing units, leading to higher availability, reduced downtime, and improved capacity utilization. The successful integration of acquired assets underscored the effectiveness of the company’s inorganic growth strategy.

Ongoing cost optimization initiatives focused on power, fuel, logistics, and raw materials, while the company maintained one of the industry’s lowest manpower costs at ₹223 per tonne. Sustainability efforts also progressed, with green power usage rising by 9.7 percentage points to 28.1%, moving steadily toward the FY28 goal of 60%, thereby contributing to reduced energy costs.

Operational efficiencies were further supported by improvements in power consumption and coal cost management, aided by targeted efficiency programs and shorter logistics distances. Financially, the company continued to demonstrate exceptional strength, boasting a net worth of ₹66,436 crore, zero debt, and top-tier credit ratings (CRISIL AAA Stable / A1+).

Working capital remained efficiently managed at 30 days on a business-level basis, while robust cash flows ensured continued support for capital expenditure initiatives, reinforcing long-term growth and operational resilience. Digital transformation remains a priority, with AI-driven business optimization tools, seamless channel partner applications, and the ongoing “Plants of Future” program.

Sustainability and corporate responsibility efforts are integrated throughout operations. The company benchmarks itself globally on energy efficiency, carbon footprint reduction, water conservation, and digital adoption. It adheres to international frameworks such as the Science Based Targets initiative (SBTi), Global Cement and Concrete Association (GCCA), and the Task Force on Climate-related Financial Disclosures (TCFD).

In July 2025, the National Company Law Tribunal approved the merger of Adani Cementation Limited into Ambuja Cements, unlocking access to a high-quality limestone reserve of 275 million tonnes in Gujarat, a jetty facility for western India, and an additional grinding capacity of 1.3 million tonnes.

Ambuja Cements stands out as one of the few large-scale cement producers with SBTi-validated net-zero targets. The company recently launched a digital version of its Business Responsibility and Sustainability Report for FY 2024-25 and achieved Environmental Product Declaration certification for Portland Pozzolana Cement (PPC).

The company continues to invest in water conservation, waste co-processing, community development programs, and education initiatives such as robotics and drone labs, rural knowledge process outsourcing centers, youth training, and women’s empowerment projects.

Branding and engagement efforts saw significant momentum with the launch of NirmAAAnotsav in collaboration with CREDAI, targeting over 20 cities nationwide. CEO-led outreach programs strengthened ties with channel partners and contractors, while Adani Certified Technology was implemented across more than 20,000 construction sites.

Over 300 skill-building workshops trained more than 9,000 contractors, and the introduction of the CEO Club celebrated top-performing partners. Community engagement initiatives connected with dealer families, reinforcing loyalty and trust. Widespread marketing campaigns—including cinema ads, audio streaming platforms, and a high-impact presence during IPL 2025—reached over 600 million people, complemented by print ads in major metro newspapers that spotlighted Ambuja’s contribution to the iconic Chenab Bridge project.

Ambuja Cements continues to learn from global industry leaders and adopt best practices in automation, green logistics, alternative fuels, and AI-driven maintenance to maintain operational excellence, customer focus, and strong governance.

With a cement capacity of 104.5 MTPA from 24 integrated plants and 22 grinding units, the company is advancing India’s sustainable infrastructure goals. Investments include 1 GW of renewable energy and 376 MW of waste heat recovery systems by FY28, along with pioneering zero-carbon heating technology through a partnership with Finland’s Coolbrook.

Ambuja Cements has achieved 12 times water positivity and 11 times plastic negativity and is recognized among India’s most trusted cement brands by TRA Research and The Economic Times. Industry outlook remains optimistic with a 4% increase in cement demand during Q1 FY26, driven by government infrastructure projects and housing schemes. The company expects 7-8% growth for the full fiscal year, supported by strong rural and urban demand and gradual infrastructure recovery.