Ambuja Cements Crosses 100 MTPA Capacity, Reports Record Annual PAT of ₹5,158 Cr (Up 9% YoY)

Ahmedabad (Gujrat) : Ambuja Cements, the cement and building materials company of the diversified Adani Portfolio, delivers a stellar performance in its financial results on standalone and consolidated basis for Q4 and full year ended March 31, 2025. This performance is supported by improved KPIs across operational parameters, showcasing the Company’s strength and resilience, healthy volume growth, value extraction of acquired assets, enhanced cost leadership, and group synergies.

Mr. Vinod Bahety, Whole Time Director & CEO, Ambuja Cements, said “This year marks a historic milestone in the journey of Ambuja Cements as we cross the 100 MTPA capacity. Additionally, we have ongoing organic expansions at various stages across the country, which will help us achieve 118 MTPA capacity by end of FY 2026, a significant step, bringing us closer to our goal of 140 MTPA by 2028. The 100 MTPA milestone is not just a number, it’s a mark of our ambition, resilience, and purpose. As India builds the foundation for a USD 10 Trillion economy, we are committed towards our role in building the nation’s infrastructure that empowers growth, connects communities, and supports a greener tomorrow. Driven by Purpose and Defined by Progress – ‘Hum Karke Dikhate Hain’.”

Cost Leadership / Operational Highlights

● Capex and Opex based Efficiency initiatives across all operational areas have shown healthy improvements reinforcing Ambuja’s cost leadership.
● Focused Branding and Technical support services yielded higher volume and expanded margins.
● WHRS power share increased by 4.8 pp from 12.5% to 17.3%, Solar power mix increased by 5.8 pp from 2.4% to 8.2%, taking the green power share up by 10.5 pp to 26.1%, clear road map & investment commitments to achieve 60% green power by FY 28.
● Out of planned 1 GW RE power by FY’28 at a cost of Rs 6,000 Cr, 200 MW Solar power and 99 MW of wind power in Khavda, Gujarat commissioned in FY’25, with annualised cost saving / EBITDA improvement of Rs 30 PMT Balance to be commissioned by June 2026.
● Agility and change in the fuel basket has helped to reduce kiln fuel cost by 14% from Rs. 1.84 to Rs. 1.58 per ’000 Kcal.
● Logistics costs reduced by 2% @ Rs 1,238/ton, driven by efficiency improvement journey (overall lead distance reducing by 16 km, direct dispatch up by 4 pp @58%). Through various freight negotiation initiatives, road PTPK has reduced to Rs 4.18 per ton. Further improvements based on modal shift to marine logistics expected in coming quarters.
● Supply from Krishnapatnam GU to Cochin and Mangalore market through sea route has commenced and will help in optimizing freight costs by Rs 5 PMT boosting profitability
● Wider footprint, based on expanded market presence from acquired assets including Penna, Sanghi, Asian, and Tuticorin GU, is driving down costs along with better capacity utilisation.
● Strategic initiative of deployment of BCFC rakes will contribute to further bringing down the logistics costs in upcoming quarters
● Acquired assets like Sanghi, Asian and Penna doing well. Penna plants operations getting stabilised and the Clinker capacity utilisation has gone up to ~80%
● Cost reduction initiatives for fuel, fly ash, logistics and overall man-power productivity, will help to achieve target cost of Rs. 3,650 PMT by FY’28, further boosting EBITDA margins.