Ambuja Cements Q4 Result: Tax credit boosts bottomline but margins narrow

Ambuja Cements Q4 Result: Tax credit boosts bottomline but margins narrow


Shares of Ambuja Cements Ltd. gained up to 3% on Monday, May 4, after the company reported its March quarter results.

Net profit came in at ₹1,644 crore for Q4FY26, higher compared to ₹555 crore in the year-ago period, largely aided by a tax credit of ₹1,462 crore versus an expense last year. Revenue increased 5.5% YoY to ₹6,972 crore.

However, operating performance remained under pressure. EBITDA declined 38.6% YoY to ₹646.5 crore, while margins contracted to 9.3% from 16% a year ago.

The company reported its highest-ever quarterly sales volume at 19.9 million tonnes, up 10% YoY, along with record quarterly revenue of ₹10,915 crore, marking a 9% increase.

Ambuja Cements also announced a dividend of ₹2 per share and reiterated its debt-free status.

On the outlook, the company flagged continued cost pressures from fuel, diesel, packaging constraints, and rupee depreciation, with the impact likely to persist in the first half of FY27.

It is focusing on cost optimisation through fuel mix changes, higher renewable energy usage, improved logistics via rail and sea, and tighter production and inventory management.

Management said that FY26 was a resilient year for the cement sector despite challenges such as adverse weather, geopolitical disruptions, and election-related demand fluctuations.

The company outperformed industry volume growth, supported by better realisations driven by a higher share of trade and premium products, along with improved asset utilisation.

Looking ahead, Ambuja expects demand growth for the cement industry to remain modest at around 5% in FY27, citing geopolitical uncertainties and an early forecast of a below-normal monsoon.



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