Ambuja Cements profit falls 90% amid high base

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 Ambuja Cements Limited (

) reported consolidated net profit of ₹114 crore in Q2 FY27, down around 90% year-on-year from ₹1,158 crore. Revenue from operations rose 10% to ₹6,113 crore. What happened? The steep profit decline was largely influenced by a ₹1,697 crore income-tax provision reversal recorded in the year-ago quarter. However, operating performance also faced pressure. Consolidated EBITDA margin declined to 13.8% from 19.2% a year earlier. Cement sales volumes remained broadly flat at 16.5 million tonnes. Trade volumes grew 8.6%, with trade sales accounting for 74% of the total mix. Premium products contributed 37% of trade sales, up two percentage points. The company also received shareholder approval for the proposed amalgamation of ACC and Orient Cement with Ambuja Cements. Completion is expected in FY27, subject to the necessary approvals. Why does it matter? The prior-year tax benefit explains much of the reported profit decline, but the contraction in EBITDA margin signals additional operating pressure. Flat volumes and higher energy costs remain challenges, while premiumisation and a stronger trade mix could support revenue quality. My view The results need to be assessed beyond the headline profit decline. The tax-related base effect is significant, but the lower operating margin warrants attention. The focus now is on cost efficiency, volume growth and the benefits of integrating the cement businesses. What I am watching next I would track EBITDA margins, cement volumes, energy costs, premium-product contribution and progress on the proposed amalgamation. No Recommendations Source: The Economic Times Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in Ambuja Cements Limited.