Ambuja Cements, a core entity within the Adani Group's infrastructure portfolio, is a leading cement and building materials company in India. The company is aggressively executing a strategic vision to create a unified "One Cement Platform" through the amalgamation of several major players, including ACC Limited, Orient Cement, Sanghi Industries, and Penna Cement. This consolidation is designed to establish a pan-India cement powerhouse with a simplified corporate structure, enhanced market leadership, and significant operational synergies. With a combined heritage spanning over 120 years through its iconic brands, Ambuja and ACC, the company has a deep-rooted legacy in the Indian market, known for its product innovation, brand strength, and technical services.

The company's operational footprint is extensive, with a presence across 31 states and union territories, supported by a network of integrated plants, grinding units, and bulk cement terminals. This vast network enables it to serve a diverse customer base through more than 120,000 channel partners. Beyond its foundational cement products, Ambuja Cements offers a comprehensive suite of building solutions, including Ready Mix Concrete (RMC), aggregates, and other specialized materials, positioning itself as an end-to-end solutions provider. Its products have been pivotal in the construction of numerous national landmark projects, underscoring its role as a key contributor to India's infrastructure development. The company is also committed to sustainability and digitalization, leveraging artificial intelligence through its Cement Intelligent Network Operations Centre (CiNOC) to drive efficiency and embedding ESG principles into its core strategy.

Official Website: http://www.acclimited.com/

• Strong Growth Metrics (Q3 FY’26 vs Q3 FY’25):

• Cement Volume: Increased by 17% from 16.2 MnT to 18.9 MnT.

• Revenue: Grew by 20% from Rs 8,585 Cr to Rs 10,277 Cr (consolidated basis).

• EBITDA: Rose by 53% from Rs 885 Cr to Rs 1,353 Cr.

• EBITDA per Tonne (PMT): Improved by 31% from Rs 548 to Rs 718.

• Robust Year-to-Date Performance (9M FY’26 vs 9M FY’25):

• Cement Volume: Increased by 19% from 45.3 MnT to 53.8 MnT.

• Revenue: Grew by 22% from Rs 24,392 Cr to Rs 29,740 Cr.

• EBITDA: Surged by 62% from Rs 3,139 Cr to Rs 5,075 Cr.

• EBITDA per Tonne (PMT): Improved by 36% from Rs 692 to Rs 943.

• Profitability (Normalised):

• Normalised Profit After Tax (PAT) for Q3 FY’26 stood at Rs 378 Cr, a 258% increase from Rs 106 Cr in Q3 FY’25.

• For 9M FY’26, normalised PAT was Rs 1,984 Cr, a 42% increase from Rs 1,399 Cr in the prior year period. These figures are adjusted for one-time income and other exceptional items to reflect core operational performance.

• Balance Sheet Strength:

• The company maintains a strong, debt-free balance sheet.

• Net worth stood at Rs 69,854 Cr as of December 31, 2025.

• It holds the highest credit rating of AAA (Stable) / A1+ from both Crisil and CARE.

The company has demonstrated strong double-digit growth across key financial metrics, underpinned by robust volume expansion and improving operational profitability, while maintaining a debt-free and highly-rated balance sheet.

• "One Cement Platform" Strategy:

• The core strategic initiative is the amalgamation of ACC, Orient Cement, Sanghi Industries, and Penna Cement into a single, unified entity.

• This creates a simplified corporate structure, enhances market leadership on a pan-India scale, and is designed to unlock significant operational and financial synergies.

• Adani Group Ecosystem Synergies:

• The company is uniquely positioned to leverage the Adani Group's extensive infrastructure portfolio.

• This includes sourcing fly ash from Adani Power (circular economy), utilizing logistics solutions from Adani Ports (APSEZ), and supplying building materials to other group entities like Adani Realty and Adani's airport and road projects.

• This integration provides a competitive advantage in supply chain efficiency, cost optimization, and assured demand.

• Digital and AI-Driven Operations:

• The launch of the Cement Intelligent Network Operations Centre (CiNOC) infuses an AI layer deep into operations, facilitating a paradigm shift in efficiency and control.

• Sales teams are empowered with smart tabs for real-time data access, and an electronic Proof of Delivery (ePOD) system has reduced invoice processing time by 30%.

• This AI-first approach enables scalable, efficient, and future-ready operations.

• Iconic Brands and Premium Portfolio:

• The company owns two of India's most iconic cement brands, Ambuja and ACC, with a cumulative history of over 120 years.

• There is a strong focus on premium products, which constitute 35% of trade sales volume and are growing at 31% YoY, enabling better price realization.

The company's uniqueness stems from its "One Cement Platform" consolidation strategy, deep integration with the Adani Group's infrastructure ecosystem, and a forward-looking adoption of AI to drive operational excellence.

• Strong Macroeconomic Drivers:

• The Indian economy is projected to grow at 7.4% in FY’26, driven by strong demand, favorable tax reforms, and rising investment in infrastructure.

• Sustained strength in manufacturing and services sectors supports overall economic activity.

• Robust Cement Demand Drivers:

• Infrastructure: Government-led infrastructure projects are a primary demand catalyst. Key projects include the Rs 14,260 Cr infra development in Chhattisgarh, the Ahmedabad-Mumbai bullet train, and the Rs 26,000 Cr Kamala Hydro Electric project. The National Infrastructure Pipeline ($2.6 Trillion) is a long-term driver.

• Housing: Both urban and rural housing segments are expected to grow between 6.0% and 7.0% in FY'26. Major initiatives like the Dharavi redevelopment project are expected to significantly boost cement consumption.

• Industrial/Commercial: This segment is projected to grow between 5.5% and 6.5%, supported by industrial capex and policies like the PLI scheme.

• Significant Headroom for Growth:

• India's per capita cement consumption is 290 kg, which is 45% below the world average (540 kg) and significantly lower than China's, indicating massive structural growth potential.

• The cement demand-to-GDP growth multiplier is estimated at 1.1x, meaning cement demand is expected to consistently outpace GDP growth.

The industry outlook remains highly positive, underpinned by strong government-led infrastructure spending, robust housing demand, and a favorable macroeconomic environment with significant long-term growth potential.

• Aggressive Capacity Expansion:

• The company is on a clear trajectory to more than double its capacity, growing from 68 MTPA at the time of acquisition (Sept'22) to a target of 155 MTPA by March 2028.

• Current capacity stands at 109 MTPA as of December 2025.

• This growth is being achieved through a combination of organic expansion (new grinding and clinker units) and strategic acquisitions.

• Profitability Growth Target:

• A key growth objective is to increase EBITDA per tonne from Rs 738 (at acquisition) and Rs 943 (9M FY'26) to a target of Rs 1,500 by March 2028.

• This is expected to be driven by cost leadership, operational leverage, and synergies.

• Premium Segment Volume Growth:

• The volume of premium cement products grew by 31% YoY, significantly contributing to improved price realizations and overall profitability.

• Sustainability-Led Growth:

• The share of green power in the energy mix is targeted to increase from 7% at acquisition to 60% by March 2028 (currently at 38%). This supports both ESG goals and cost reduction.

The company's growth strategy is centered on an aggressive, well-defined plan for capacity expansion to 155 MTPA, complemented by a sharp focus on improving profitability per tonne through operational efficiencies and premiumization.

• Realizing Acquisition Synergies:

• The consolidation of ACC, Orient, Sanghi, and Penna under the "One Cement Platform" presents a significant opportunity to unlock cost synergies in procurement, logistics, and overheads, driving towards the targeted cost leadership.

• Premiumization and Value-Added Products:

• With premium cement already forming 35% of trade sales, there is a clear opportunity to further increase this share to enhance revenue and margins.

• The Ready Mix Concrete (RMC) business, with 117 plants and 36% YoY volume growth, represents a high-growth, value-added segment that can be further expanded.

• Cost Leadership Journey:

• The company has a detailed roadmap to reduce total costs to below Rs 3,650 per tonne by March 2028. This provides an opportunity to protect and expand margins irrespective of market price fluctuations through initiatives in fuel mix, logistics optimization, and raw material sourcing.

• ESG Leadership as a Value Driver:

• Pioneering efforts in decarbonization (e.g., Coolbrook technology), achieving high ESG scores (DJSI, CDP), and expanding the circular economy business (Geoclean) can attract ESG-focused capital and enhance brand reputation, creating long-term value.

Key opportunities lie in executing the synergy benefits from recent acquisitions, expanding the high-margin premium and RMC businesses, and achieving targeted cost reductions through operational and ESG-focused initiatives.

• Improving Capacity Utilization:

• Consolidated capacity utilization for net cement sales was 72% for Q3 FY’26, with an exit rate of 80% in December 2025.

• A key achievement is the significant improvement in the utilization of acquired assets, which has increased from 37% in Q3 FY'25 to 65% by the exit of December 2025, with a path to achieve ~80%.

• Recent Capacity Additions:

• Successfully commissioned a 2.4 MTPA brownfield Cement Grinding Unit in Marwar, Rajasthan.

• Commissioned a 4 MTPA brownfield Clinker Unit in Bhatapara, Chhattisgarh.

• These additions have increased total cement capacity to ~109 MTPA and total clinker capacity to 66 MTPA.

• Capital Expenditure Plan:

• The company maintains a healthy annual run rate of capital expenditure.

• This includes approximately Rs 8,000 Cr for growth capex (capacity expansion) and Rs 2,000 Cr for efficiency capex (cost reduction and debottlenecking).

Capacity utilization is steadily improving, especially at acquired plants, and is supported by a substantial annual capex program aimed at both expanding capacity and enhancing operational efficiency.

• Complete Corporate Consolidation:

• The amalgamation process for Sanghi Industries and Penna Cement is expected to be completed by March 2026.

• The merger of ACC and Orient Cement is awaiting regulatory approvals and is expected to be completed over FY27, finalizing the "One Cement Platform."

• Phased Capacity Expansion Roadmap:

• March 2026 Target: Achieve 115 MTPA of effective capacity.

• March 2028 Target: Reach the milestone of 155 MTPA through a combination of ongoing organic projects, debottlenecking, and a pipeline of new expansions.

• Cost and Profitability Targets:

• Cost Reduction: Systematically reduce production cost per tonne to < Rs 3,800 by March 2027 and further to < Rs 3,650 by March 2028.

• Profitability: Achieve the strategic target of Rs 1,500 EBITDA per metric tonne by the exit of March 2028.

• Sustainability Roadmap:

• Achieve a 60% share of green power in the total energy mix by March 2028.

• Increase the use of waste-derived resources in the circular economy to 21 million tonnes by 2030.

The company has a clear and ambitious future plan focused on completing its corporate consolidation, executing a multi-year capacity expansion to 155 MTPA, and hitting specific cost and profitability targets by FY'28.

• EBITDA Margin Performance:

• The consolidated EBITDA margin for Q3 FY’26 was 13.2%.

• For the nine months ended December 2025 (9M FY’26), the EBITDA margin was 17.1%.

• EBITDA Per Tonne (PMT):

• The key profitability metric, EBITDA PMT, stood at Rs 718 for Q3 FY'26 and Rs 943 for 9M FY'26.

• Existing assets (Ambuja + ACC) delivered a higher EBITDA of Rs 1,045 PMT in 9M FY’26, indicating strong performance from the core business.

• Cost Analysis (YoY for Q3 FY'26):

• Raw Material Cost: Increased by 2% to Rs 763 PMT, mainly due to higher consumption of purchased clinker.

• Power & Fuel Cost: Increased by 9% to Rs 1,382 PMT, partly due to higher clinker production versus sales volume, with benefits expected in the next quarter. Green power share increased to 36.9%.

• Freight & Forwarding Cost: Decreased by 1% to Rs 1,236 PMT, benefiting from cost reduction initiatives and an increasing share of waterways.

• Other Expenses: Remained stable, increasing by 1% to Rs 862 PMT.

While reported margins reflect ongoing integration costs, the core focus remains on elevating the EBITDA per tonne towards the Rs 1,500 target through disciplined cost optimization across all operational levers.

• Merger Status Updates:

• Sanghi & Penna: The NCLT process for both mergers is in the final stages, with completion expected by March 2026.

• ACC & Orient: Merger schemes have been filed with stock exchanges, and the company is awaiting a No-Objection Certificate from SEBI, with completion expected over FY27.

• ESG and Sustainability Leadership:

• Ambuja and ACC achieved high scores of 90 and 89, respectively, in the S&P Global Corporate Sustainability Assessment.

• The company planted 7.2 million trees as of Q3 FY'26 and remains 14 times water positive.

• It is pioneering the world's first commercial deployment of Coolbrook’s RotoDynamic Heater technology for electrified kiln heating to advance industrial decarbonization.

• Strengthened Corporate Governance:

• The Board and its committees are structured to ensure strong independence, with 100% of statutory committees chaired by Independent Directors.

• The company is implementing pathways to further strengthen governance, including targets for gender diversity on the board and third-party reviews of related-party transactions.

• Market Leadership and Branding:

• Market share stands at 16.6%.

• Realizations improved by Rs 5/bag YoY, driven by a focus on premium products and brand-strengthening initiatives.

• Ambuja Cements was named 'India's Most Trusted Cement Brand 2025' for the fourth consecutive year.

The company is making steady progress on its strategic amalgamations, achieving key operational milestones in capacity expansion, and reinforcing its leadership in ESG and corporate governance.