Ambuja Cements posts 81% YoY jump in EBITDA; beats estimates on lower costs, reiterate BUY with TP ₹740
Ambuja Cements (ACEM) delivered a strong ~81% YoY growth in EBITDA to ₹17.6bn, outperforming estimates by ~28% on account of lower-than-expected operating costs per tonne. EBITDA per tonne rose ~52% YoY to ₹1,042 (vs. est. ₹847), while operating margin expanded 6pp YoY to ~19% (+3.7pp vs. estimates). Adjusted profit after MI increased ~14% YoY to ₹5.6bn, 35% above expectations. Following this outperformance, estimates for FY26 EBITDA have been raised by 10%, and by ~3% for FY27/FY28. At the current level, ACEM trades at 16x/14x FY27E/FY28E EV/EBITDA, and USD138/USD128 EV/t. StockYard Research values the stock at 20x Sep’27E EV/EBITDA, arriving at a target price of ₹740. Reiterate BUY. #AmbujaCements #Q2Results #EarningsBeat #CementSector #EBITDAGrowth #StockMarket #BuildingMaterials #ACEM #StockYardResearch #ReiterateBUY