Ambuja Cements Q3 Profit Falls 91% YoY to Rs 204 Crore, Revenue Rises 20%
**Ambuja Cements Market Brief: Q3 FY26 Update**
**Volume & Capacity Expansion**
Ambuja Cements has reported its highest-ever quarterly sales volume of **18.9 Million Tonnes** for the quarter ended December 31, 2025. This represents a robust **17% YoY growth**, effectively clocking **2x the industry average** (estimated at ~8%).
The company’s total cement capacity has solidified at **109 MTPA**, following the successful operationalization of the **2.4 MTPA** Marwar Grinding Unit. Capacity utilization has also seen a significant uptick, improving from **37%** to **58%** YoY for acquired assets.
**Premium Portfolio & Realizations**
The strategy to prioritize trade sales continues to yield dividends. The share of premium cement is sustained at **35%** of trade sales, with premium volumes surging **31% YoY**. This mix shift has enabled Ambuja to deliver superior realizations compared to peers, with realizations improving by **₹5 per bag** YoY.
**Financial Performance**
Despite volume leadership, profitability faced headwinds from rising input costs.
* **Revenue:** Reached a record **₹10,277 Cr**, up **20%** on a normalized basis.
* **EBITDA:** Stood at **₹1,353 Cr**, with margins compressing to **13.2%** (down from ~18% previously) due to higher power and fuel expenses.
* **Net Profit:** Reported at **₹378 Cr** (normalized), adjusting for prior one-offs.
**Strategic Outlook**
The company is aggressively pursuing its 'One Cement Platform' strategy, amalgamating ACC and Orient Cement to streamline operations. Management maintains a strict cost leadership target, aiming to reduce production costs to **< ₹3,650 PMT** by March 2028 through green power initiatives and logistics optimization.
**Market Reaction**
Following the earnings announcement on January 30, 2026, the stock witnessed immediate pressure, correcting approximately **4.6%** to trade near **₹511**, as the market digested the margin compression despite the topline beat.