Ambuja Cements Limited (AMBUJACEM)
Large CapMaterials stocks · Large cap · NSE
Ambuja Cements is the ninth largest global building material solutions company, part of the diversified Adani Portfolio. It operates in the Indian cement sector, focusing on manufacturing and selling cement and related products.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100Rev -8% YoY · PAT -37% YoY · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹9,500 Cr | -7.7% | -13.0% |
| EBITDA | ₹1,589 Cr | -19.0% | +8.5% |
| Operating margin | 17.0% | -200 bps | +400 bps |
| PAT | ₹660 Cr | -36.6% | -64.5% |
| PAT margin | 7.0% | -317 bps | -1006 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Ambuja Cements reported highest ever annual sales volume of 73.7 MT (+16% YoY) and EBITDA of INR 6,539 crores (+31% YoY) for FY26. However, Q4 FY26 saw higher costs and muted volume growth, with acquired assets underperforming expectations.
The thesis is under stress due to significant cost overruns in FY26, particularly in Q4, and delays in turnaround of acquired assets. While management projects cost improvements and volume growth for FY27, the ability to execute on these internal factors amidst a soft industry demand and pricing pressure remains a key concern.
Premiumization Strategy
nullPremium cement accounted for 35% of trade sales during FY26, reflecting sustained progress. Q4 premium cement sales were 36% of trade sales.
Capacity Expansion
nullCement capacity increased to 109 MT in FY26, with a target of 119 MT by end of FY27 through ongoing additions.
Acquired Asset Integration
nullSuccessful amalgamation of Sanghi Industries and Penna Cement completed, with ACC and Orient Cement under process, forming 'One Cement platform'.
Cost Optimization from Green Energy
nullGreen power share increased to 32% in Q4, expected to contribute to INR 150-200 savings along with raw material costs.
FY26 Grinding Capacity Additions
nullCommissioned 10.7 million tonnes of new grinding capacity at Marwar, Farakka, Sankrail, Sindri, and Krishnapatnam.
FY26 Clinker Capacity Additions
nullAdded clinker capacity of 7 million tonnes at Jodhpur and Bhatapara.
FY27 Grinding Capacity Target
nullExpecting to hit capacity of almost 119 million tonnes by end of FY27 with proposed ongoing additions of 10 million tonnes of GU.
Future Clinker Projects
nullWon a limestone block in Assam and planning a new clinker line in Mundra, both new territories/projects.
Industry Consolidation & Reforms
nullFY26 was marked by industry consolidation and GST 2.0 reforms, which can lead to a more structured market.
Infrastructure Growth
nullIndia's long-term infrastructure story remains fundamentally very strong and secular.
Cost Savings Potential
nullINR 150 to INR 200 savings expected from raw material cost (fly ash) and green energy utilization.
Soft Demand & Pricing Pressure
nullCement demand is expected to remain a little soft in FY27 due to inflationary pressure and weak monsoon. Industry is under relentless pressure and not able to pass on price increases.
Higher Operating Costs
nullHigher freight, packing, and fuel costs, along with increased additional goods tax in some states, led to cost escalation in Q4 FY26.
Acquired Asset Underperformance
nullNewly acquired assets, particularly Sanghi and Penna, witnessed lower utilization levels and required higher than expected time/capex for maintenance and upkeep.
Efficiency Capex Delays
nullThere is a 3 to 6 months delay on some of the efficiency capexes, impacting cost improvement timelines.
Execution Risk on Acquired Assets
nullTurnaround initiatives for Sanghi and Penna took longer than expected, and these assets still require significant effort to reach desired utilization and cost efficiency levels.
Inability to Pass on Costs
nullDespite cost increases, the industry is under relentless pressure and unable to pass on price hikes, potentially impacting margins.
Global Geopolitical & Economic Volatility
nullOngoing global geopolitical situations, energy costs, and expected hikes in fuel/diesel make long-term cost estimates difficult and could lead to further cost escalations.
Delayed Infrastructure for Raw Materials
nullPending railway infrastructure has prevented the company from optimizing raw material costs, specifically for fly ash.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is useful for assessing overall annual growth and financial performance, especially for a seasonal business. However, QoQ is crucial for tracking sequential momentum, cost trends, and the integration progress of recently acquired assets, which significantly impact comparability for full-year figures.
Annual Sales Volume
nullAchieved highest ever annual sales volume of 73.7 million tonnes, up 16% Y-on-Y in FY26.
EBITDA per Metric Ton
nullNormalized EBITDA of INR 887 per metric ton (PMT) for FY26, up 12% Y-on-Y.
Cement Capacity
nullCompany's cement capacity increased to 109 million tonnes in FY26.
Acquired Asset Utilization (Sanghi)
nullSanghi Industries utilization remains at around 57% on cement capacity.
FY27 Strategic Focus
nullFocus firmly remains on streamlining operations, margin expansion, increasing trade sales, and premium product sales.
Acquired Asset Improvement
nullTarget to increase utilization of Sanghi and Penna (19 MT combined capacity) by at least 5% to 10%.
Calibrated Capex Approach
nullRecalibrating capacity expansion plans to first optimize current capacities and take advantage of railway policies on bulk cement terminals, ensuring disciplined capital allocation.
Commitment to Internal Execution
nullManagement is hyper-focused on improving performance gaps, stating that FY27 guidance is 100% controllable by internal execution.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Cost per Tonne | INR 4,500/tonne (Q4 FY26 peak) | Progressive improvement and achievement of INR 150-200 savings from fly ash and green energy in coming quarters. |
| Acquired Asset Utilization | Sanghi ~57%, Penna ~46% | Increase in utilization by 5-10% for these assets, indicating successful turnaround and integration. |
| FY27 Volume Growth | Target 8% growth to 80 million tonnes | Achievement of volume targets, especially given the anticipated soft industry demand of 5-5.5%. |
| Capacity Commissioning & Stabilization | 10 MT GU additions by end FY27 | Timely commissioning and stabilization of new grinding capacities, contributing to volume ramp-up. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
35Bearishfull bear SMA stack · SMA20 -4.9% / mo · MACD − · near 52W low
Technical chart
AMBUJACEMdaily · 1Y · AUTO-15.6%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 40.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~5.2% over last month) — short-term momentum negative.
- RSI(14) at 40 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 8.3% below the 30-week proxy.
- The 50-DMA is below the 30-week proxy and its slope is falling -3.5%.
- Both 3-month and 6-month returns are negative.
Valuation & score drivers
U-Score 48 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 48 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 49.5%.
- Balance sheet contributes 12/15 to the score.
Main drags
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 12/30; verify the latest quarterly trend.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 59th percentile of the scored universe and 47th percentile within Materials. Main check: financial discipline is weak at 38/100.
Healthy Trust Lite: Promoter holding is 67.3%. Key concern: 2 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Materials: 47th pctile, median 70 · Large: 35th pctile, median 73
132 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 67.3%.
- ▸Promoter pledge is zero.
- ▸7 years of positive FCF.
- ▸Debt/equity is 0.01.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at 5.6%.
- ▸ROCE trend is -4.4%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 21.40
- P/B
- 1.69
- EV/EBITDA
- 10.30
- Market Cap
- 100635.00Cr
Profitability
- ROE
- 8.85%
- ROCE
- 5.61%
- ROA
- 5.83%
- Dividend Y
- 0.49%
Growth (CAGR)
- Revenue 5Y
- 11.00%
- EPS 5Y
- 15.00%
- Revenue 3Y
- 1.00%
- EPS 3Y
- 21.00%
Balance Sheet
- Debt/Equity
- 0.01
- Interest Coverage
- 28.82×
- Altman Z
- 3.83
- Book Value
- 240.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 7/5
- OCF
- 5362.00 Cr
- EPS TTM
- 17.83
Shareholding
- Promoter Hold
- 67.33%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 5%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Materials, ranked by similarity
Peers
Business-comparable names in Materials, ranked by similarity
Peers
Business-comparable peers in Materials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.