Ambuja Cements Ltd

Meeting Details

• Dates: 7–8 Sep 2026 (London) and 9 Sep 2026 (Abu Dhabi).
• Event: Adani Annual Conference 2026; meeting type: 1-on-1 and group meetings; mode: physical.
• Venues: London (7–8 Sep 2026) and Abu Dhabi (9 Sep 2026).
• Purpose: investor/analyst interaction during Adani Conference.

Rating Details

• Ind-Ra assigns IND AAA/Stable/IND A1+ to Ambuja Cements’ bank loan facilities of INR 70,000 million.
• Long-term rating: IND AAA; Short-term rating: IND A1+; Outlook: Stable.

Meeting Details

• Date: Wednesday, August 19, 2026, 11:00 a.m.–5:00 p.m. local time.
• Event: Motilal Oswal Investor Conference; meetings: 1x1 and group; mode: physical.
• Venue: Mumbai.

Participants

• Key participant: Company Secretary & Compliance Officer.

Purpose

• Purpose: Investor/analyst interaction; discussions based on publicly available information only.

Commissioning and capacity impact

• Adani Cement Industries Limited, a wholly owned subsidiary, commissioned 1.2 MTPA cement grinding unit at Dahej, Gujarat.
• Consolidated cement capacity increases to 110.05 MTPA.

Overview and key terms

• NCLT directs equity shareholder meetings for ACC-Amalgamating and Ambuja-Amalgamated on Sept 29, 2026.
• Appointed Date 01.01.2026; ACC to dissolve without winding up; new equity shares issued to ACC shareholders.
• No secured or preference creditors; unsecured creditors meetings dispensed with due to asset-liability excess.
• Rationale: consolidation, synergies, and long-term strategic alignment across the group.
• NSE and BSE have issued no-objection certificates for the scheme's listing.
• Amalgamated Company holds 50.05% of the Amalgamating Company as of 31.05.2026.

Meeting Details

• Event: Analysts/Investors Call on unaudited quarterly results (quarter ended June 30, 2026).
• Recording: Audio recording posted on company website.
• Date of filing/publication: July 28, 2026.
• Call date/time: not disclosed.
• Key company participant: Company Secretary & Compliance Officer.
• Purpose: provide recording of the results discussion for investors.
• Note: no links included; recording accessible on website.

Fund utilisation status

• No deviation in use of funds from warrants-based preferential issue.
• Mode of fund raising: warrants-based preferential issue.
• Funding status: none utilised to date.
• Allocations unchanged; no deviation in original vs. modified objects.
• Audit Committee: no comments.
• Auditors: no comments.
• Monitoring agency: not applicable.

Business Overview

• Cement capacity 109 MTPA as of 30 Jun 2026; target 119 MTPA by FY27.
• Presence in 31 states and 665+ districts nationwide.
• Strategic focus on value-led growth and premium/ blended cement mix.
• AI-enabled sales and logistics with IoT-based reliability.
• Trial production and capacity expansions at Dahej, Salai Banwa, Bathinda, Jodhpur.
• Kalamboli 1 MTPA and Warisaliganj 2.4 MTPA trials planned in Q2.
• Maratha clinker line 4 MTPA to be commissioned in 2027.
• CRISIL and CARE rate Ambuja AAA/A1+; healthy cash flows support capex.

Operational Highlights

• Q1 FY27 cement volume 17.1 MnT.
• Revenue from operations ₹9,500 Cr; EBITDA ₹1,589 Cr; margin 16.7%.
• EBITDA per tonne ₹931.
• Trade cement share 78%; premium cement 34%; blended cement 85%.
• Clinker factor 63.7%.
• Capacity roadmap: 109 MTPA; 119 MTPA target.
• New trial plants: Dahej, Salai Banwa, Bathinda, Jodhpur.
• In-plant automation and IoT reliability improve productivity and asset health.

Financial Performance

• Revenue from operations declined 8% YoY.
• EBITDA down 19% YoY to ₹1,589 Cr; margin 16.7%.
• PAT (reported) ₹660 Cr; Normalised PAT ₹595 Cr.
• Volume declined to 17.1 MnT from 18.4 MnT YoY.
• Raw material cost ₹674/ton; Power & fuel ₹1,311/ton.
• Freight & forwarding ₹1,295/ton; Other expenses ₹850/ton.

Capital & Liquidity

• Cash and cash equivalents ₹1,770 Cr as on 31-Mar-26.
• Total assets ₹89,607 Cr; Total equity ₹71,846 Cr.
• Healthy cash flows sustain Ambuja’s capex programme.

Strategic Priorities & Outlook

• Capacity expansion to 119 MTPA by FY27.
• FY27 cost reduction target ₹4,250/PMT; Jun’26 PMT ₹4,241.
• Capex funded by healthy cash flows; focus on value and market leadership.
• AI-enabled logistics and digitalization to sustain productivity.
• Increase green power share; optimize fuel mix with domestic coal.

Risks & Mitigation

• West Asia conflict raises fuel, freight, and packaging costs.
• Packaging costs up 25–30% in the quarter.
• Fuel inventory cycle of 60–90 days may affect near-term margins.
• Mitigations: cost optimization, sourcing mix, rail transport, and RE expansion.

Governance & Leadership

• Independent Directors form the majority; tenure up to 3 years for two terms.
• Gender diversity minimum 30% female directors.
• Statutory committees chaired by Independent Directors.

Key financials

• Q1 FY'27 consolidated revenue Rs 9,500 Cr and operating EBITDA Rs 1,589 Cr.
• Sales volume 17.1 MnT; premium products 34%; trade share 78%.
• EBITDA margin 16.7%, up 331 bps QoQ.
• PAT Rs 660 Cr; EPS Rs 2.32; YoY PAT declined from Rs 1,041 Cr.
• Consolidated capex/capacity: 109 MTPA; target 119 MTPA by FY'27.

Operations & capacity expansion

• Capacity 109 MTPA as of 30-Jun-2026; trials at Dahej, Salai Banwa, Bathinda, Jodhpur.
• Kalamboli (1.0 MTPA) and Warisaliganj (2.4 MTPA) trials in Q2; Maratha clinker line 4 MTPA in 2027.
• On track to 119 MTPA by end-FY27; commissioning at multiple sites listed.

Balance sheet & credit rating

• Debt-free balance sheet; net worth Rs 71,954 Cr; cash Rs 844 Cr.
• CRISIL and CARE ratings: AAA/A1+; strong operating cash flows support capex.

ESG & sustainability

• Leilac partnership to enable low-carbon cement production; decarbonisation roadmap.
• GreenPro certification for blended cement; GRIHA certification across portfolio; LCA/EPD added.
• Renewable energy capacity up 75 MW to 973 MW; green power 34%.

Outlook & risk

• Industry demand outlook: cement demand ~5% in FY'27; macro fundamentals remain strong.
• West Asia tensions lifting input costs; mitigated via fuel mix, renewables, and cost control.
• Target cost reduction ~Rs 250 PMT to reach Rs 4,250 PMT by FY'27 end.