Ambuja Cements reports Rs 35,045cr revenue and 10% volume growth in FY25

What were the key financial highlights for Ambuja Cements in FY25?

Ambuja Cements Limited, part of the diversified Adani Group, announced a landmark financial performance for the fiscal year ended March 31, 2025. The company reported its highest-ever consolidated profit after tax (PAT) of ₹5,158 crore, representing a 9% year-on-year increase. This strong bottom-line performance was driven by robust volume growth, cost efficiency improvements, and successful asset integrations.

Annual revenue rose to ₹35,045 crore, marking a 6% increase from FY24, while total sales volumes reached an all-time high of 65.2 million tonnes (MnT), up 10% year-on-year. The fourth quarter alone saw the company achieve record volumes of 18.7 MnT and quarterly EBITDA of ₹1,868 crore, driven by ₹1,001 EBITDA per tonne margins. On a standalone basis, PAT surged by 75% to ₹929 crore in Q4 FY25, reflecting a sharp jump in operational profitability and synergies from recent acquisitions.

The Board recommended a dividend of ₹2.0 per equity share, in line with the previous year, amid ongoing capital expenditure plans to expand capacity and enhance operational resilience.

How did Ambuja Cements cross the 100 MTPA milestone?

In FY25, Ambuja Cements crossed the coveted 100 million tonnes per annum (MTPA) capacity threshold, solidifying its position as the 9th largest cement manufacturer globally. This milestone was achieved through a combination of organic expansions and strategic acquisitions, including the full integration of Orient Cement. Additionally, brownfield expansions such as the 2.4 MTPA GU unit at Farakka, West Bengal, and debottlenecking projects added another 0.5 MTPA across multiple plants.

The company aims to increase capacity to 118 MTPA by FY26 and further to 140 MTPA by 2028. According to CEO Vinod Bahety, the 100 MTPA milestone represents not just scale but a commitment to enabling India‘s transition into a $10 trillion economy through sustainable infrastructure development.

What cost leadership strategies are driving profitability?

Ambuja Cements undertook several cost leadership initiatives during FY25, which significantly contributed to its margin expansion. Fuel costs, one of the largest expense items for cement manufacturers, were reduced by 14% year-on-year due to agility in sourcing and optimization of the fuel mix. The kiln fuel cost dropped from ₹1.84 to ₹1.58 per ‘000 kcal.

Logistics efficiencies also played a critical role. The company reduced average lead distance by 16 km and increased direct dispatches by 4 percentage points to 58%. As a result, logistics costs declined by 2% to ₹1,238 per tonne, aided further by modal shifts towards marine logistics, including supply chain routes from Krishnapatnam to Cochin and Mangalore.

The deployment of BCFC (Bulk Cement Freight Corridor) rakes and the integration of newly acquired assets such as Penna Cement and Sanghi Industries improved capacity utilization and regional footprint, further supporting cost reduction goals. Penna’s clinker capacity utilization, for instance, stabilized at approximately 80% by year-end.

Ambuja has set a long-term cost target of ₹3,650 per tonne by FY28, supported by fuel, logistics, manpower, and material productivity improvements.

How is Ambuja Cements advancing its green energy and ESG goals?

A cornerstone of Ambuja’s strategy is a shift towards green energy. In FY25, the company commissioned 299 MW of renewable power capacity—200 MW solar and 99 MW wind—at Khavda, Gujarat. These installations are part of a broader commitment to achieve 1,000 MW of green energy capacity by FY28 at an investment of ₹6,000 crore. Green power now contributes 26.1% of total consumption, up 10.5 percentage points year-on-year.

Waste heat recovery systems (WHRS), solar, and wind energy integrations are enabling the company to reduce dependence on fossil fuels. As a result, Ambuja is recognized as one of the world’s most sustainable cement producers. ESG achievements include 12x water positivity, 11x plastic negativity, and processing over 20.88 million tonnes of waste-derived resources under its circular economy model.

Ambuja is also aligning with global frameworks such as the Science-Based Targets initiative (SBTi), the Global Cement and Concrete Association (GCCA), and the Task Force on Climate-Related Financial Disclosures (TCFD).

What role is digital transformation playing in Ambuja’s growth?

Digitalisation is at the core of Ambuja Cements’ operational modernization. The company has launched tools such as the ‘Reward Connect’ app, improving channel partner engagement through real-time rewards. It has implemented Oracle Fusion and Kronos to streamline human resources and contractor management workflows.

In logistics, GPS, RFID, and AI-based systems have been deployed to enable real-time tracking and route optimization. Initiatives like OneConnect and Adani Cement Connect are driving unified sales and customer operations. Additionally, OT (Operational Technology) Security Monitoring has been introduced to protect digital infrastructure from cyber threats.

Through digital analytics and IoT-enabled plant systems, Ambuja is enhancing decision-making, improving productivity, and reducing downtime.

How does Ambuja Cements compare to global players?

Ambuja has positioned itself as a globally benchmarked company, comparing favorably with leading international peers in energy efficiency, emissions control, and sustainability standards. It is the world’s first cement company to join the Alliance for Industry Decarbonization under the International Renewable Energy Agency (IRENA) and is among the few cement players testing Finland-based Coolbrook’s RotoDynamic Heater™ technology for zero-carbon heating.

It has also received multiple accolades such as the Golden Peacock Award for ESG, the CII SCALE Award for logistics, and recognition as an “Iconic Brand of India” by The Economic Times for three consecutive years.

How is the market sentiment and stock performance of Ambuja Cements shaping up in 2025?

Ambuja Cements Limited, listed on both the National Stock Exchange of India and BSE Limited, has maintained a resilient stock market performance throughout FY25, underpinned by strong financials, aggressive expansion strategies, and robust ESG credentials. As of April 29, 2025, Ambuja Cements’ stock had delivered a steady gain of approximately 14% year-to-date, outperforming the Nifty Realty and broader Nifty Infrastructure indices, which have remained volatile amid concerns over input cost inflation and geopolitical uncertainties.

Investor sentiment around Ambuja Cements remains broadly positive, driven by the company’s successful capacity ramp-up to over 100 million tonnes per annum, the strengthening of its balance sheet with cash reserves exceeding ₹10,125 crore, and the strategic integration of acquisitions like Orient Cement and Penna Cement. Analysts from major brokerage houses are largely maintaining a “Buy” or “Accumulate” rating on the stock, citing visible earnings growth, cost optimization programs, green energy leadership, and an ambitious 140 MTPA target by 2028 as key bullish triggers.

Institutional flows into Ambuja Cements have been healthy during Q4 FY25. According to the latest shareholding data, foreign institutional investors (FIIs) marginally increased their stake, supported by global funds’ rotation into Indian infrastructure and industrial plays following India’s sustained GDP growth projections. Domestic institutional investors (DIIs), particularly mutual funds and insurance companies, have also maintained steady accumulation, reflecting confidence in the cement sector’s medium-to-long-term demand visibility.

FII activity witnessed a net positive inflow into Ambuja shares over the last two quarters, correlating with India’s broader status upgrade among emerging markets and the cement sector’s ESG pivot — areas that international ESG funds are increasingly targeting post-Helpful Content SEO updates. Meanwhile, DII inflows remained consistent, with prominent Indian mutual funds adding exposure to capture the expected 7–8% cement demand growth in FY26.

Given its zero-debt status, expanding operational footprint, aggressive green energy investments, and positive operating leverage, Ambuja Cements is seen by market experts as a preferred pick among infrastructure growth proxies. Most brokerage recommendations currently suggest a “Buy on Dips” strategy, with a 12-month fair value target ranging between ₹520 to ₹560, implying an upside potential of around 18–22% from current levels.

However, risks such as a sharp escalation in petcoke or imported coal prices, adverse monsoon effects on rural demand, or execution delays in renewable energy projects could moderately impact near-term margins. Analysts caution that while the stock remains fundamentally strong, investors should monitor quarterly operational metrics closely, particularly EBITDA per tonne trends and cost curves.

In summary, Ambuja Cements’ stock sentiment remains firmly positive in 2025, supported by strong institutional backing, ESG leadership, aggressive capex plans, and India’s infrastructure boom. Long-term investors are likely to benefit from sustained earnings momentum, while short-term traders are advised to accumulate strategically during market-wide corrections.

What is the cement industry outlook for FY26?

India’s cement industry recorded 6.5–7% growth in Q4 FY25, buoyed by rising infrastructure investments, a real estate rebound, and renewed rural demand. Cumulative annual growth stood between 4–5%. Looking ahead, cement demand in FY26 is expected to accelerate to 7–8%, supported by the Union Budget’s continued emphasis on infrastructure, affordable housing, and rural development.

Ambuja’s scale, operational agility, and sustainability-first approach place it in a strong position to benefit from this anticipated uptick. With a robust pipeline of capacity expansions, digital innovation, and ESG-focused operations, the company aims to remain ahead of both domestic and global peers.