Ambuja Cements climb nearly 4% on 14,500 cr expansion plan

Ambuja Cements shares rose nearly 4% on Monday after the company unveiled a major expansion programme involving a total capital expenditure of around Rs 14,500 crore. The investment will add about 30 million tonnes per annum of cement capacity across key markets, along with 10 million tonnes of clinker capacity. Ambuja’s Q2FY27 EBITDA of Rs 1,270 crore came in above Nomura’s estimate, supported by better-than-expected realisations, even as volumes declined slightly year-on-year. While Nomura raised volume estimates, it lowered its EBITDA per tonne forecasts for FY27-FY29, pointing to weaker fixed-cost absorption and elevated costs. The brokerage expects limited margin recovery in the December quarter due to higher fuel costs.