Ambuja Cements' Q1 FY27 results show strong sequential cost management despite a slight dip in volumes.
**Business Performance:** Revenue was ₹9,500 Cr, down 8% YoY. EBITDA rose 8% QoQ to ₹1,589 Cr, driven by a significant sequential cost reduction of ₹206 PMT. Volumes hit 17.1 MnT, reflecting a strategic pivot towards higher-margin products and blended cement, which now accounts for 85% of sales. Trade share also improved to 78%. Profit After Tax stood at ₹660 Cr.
**Growth Drivers or Strategy:** The company is expanding capacity to 119 MTPA by FY27. Key initiatives include digitalization for logistics and plant operations, maximizing green power to 60% by FY28, and fuel mix optimization to counter rising input costs. A target to reduce costs by ₹250 PMT in FY27 remains on track.
**Recent Developments:** Trial production started at new units in Dahej, Salai Banwa, Bathinda, and Jodhpur, with more plants set for trials in Q2.
**Key Financial Metrics:** EPS for the quarter was ₹2.32. EBITDA PMT improved 27% QoQ to ₹931.
**Management Commentary / Outlook:** Management anticipates continued robust domestic demand, especially from housing and infrastructure. They aim to leverage their unified business model and digital focus to further reduce costs and reinforce leadership in blended and green cement offerings. The company is actively mitigating cost pressures from geopolitical events.