Ambuja Cements Q1 FY27 Results (NSE: AMBUJACEM)
Signal: Revenue declined
The read
Ambuja's Q1FY27 showed sequential margin recovery (+3.3pp QoQ EBITDA margin) driven by cost reduction of ₹206 PMT, but YoY revenue and profit declined on lower volume (-7.1% YoY) and fuel cost inflation; premiumisation (trade share up, premium products up) is positive for mix but not enough to offset volume drop and cost headwinds; company remains debt-free with strong credit ratings.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹9,500 Cr | -7.7% | -13.0% |
| EBIT | ₹1,589 Cr | -19.0% | |
| Net profit | ₹660 Cr | -36.6% | |
| EPS | ₹2.32 | -34.3% | |
| EBIT margin | 16.7% |
P&L walk
Revenue declined 7.7% YoY as volume fell 7.1% YoY; EBITDA margin contracted 2.4pp YoY on fuel cost inflation but expanded 3.3pp QoQ via cost reduction of ₹206 PMT; PAT dropped 36.6% YoY.
Key positives
- Sequential EBITDA margin expansion of 331 bps to 16.7%, driven by cost reduction of ₹206 PMT.
- Trade share increased 4pp YoY to 78%; premium products share up 1pp to 34% - improving sales mix.
- Clinker factor improved 2.1pp YoY to 63.7% - input efficiency gain.
- Green power share up 6pp YoY to 34%; renewable capacity increased by 75 MW to 973 MW.
- Debt-free with AAA/A1+ credit ratings.
Key concerns
- Revenue declined 7.7% YoY and volume fell 7.1% YoY - weak demand environment.
- EBITDA margin contracted 2.4pp YoY (19.1% to 16.7%) due to fuel cost inflation from West Asia tensions.
- PAT down 36.6% YoY, EPS down 34.3%.
- Management warns Q2 may see further cost pressure due to fuel inventory cycle.
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