Amid infra push know details of this super performer in cement; Q2 net profit rockets
Ambuja Cements is a major player in the cement sector and it belongs to the Adani Group, a key participant in the infrastructure push that is taking place in India. The investors have reacted positively after the company announced a massive and unexpected jump in net profits in Q2FY26.
Kolkata: There is a much-talked about infrastructure push in India. Among those sectors on which fortunes smiles in a climate of infrastructure push, cement is one of the prominent ones. Ambuja Cement has caught the attention of many in this market with a spurt in net profit even as its sales figures and operating profit lagged far behind this blistering pace of growth.
The company's net profits has surged 364% and not many companies in any sector can boats of such a fillip to the bottomline. There is another sparkling fact about Ambuja Cements -- it has got a small amount of debt in its books. The promoters have also raised their stake in the company.
On November 3, the company stated that its net profit jumped to Rs 1,766 crore in the July-September quarter. IN the same period a year earlier, this Adani Group company had recorded a net profit of Rs 480 crore. Its revenue from operations went up by 25% to reach Rs 9,129.73 crore in the Q2FY26 period compared to Rs 7,304.77 crore in the same period of FY25.
Share price and quarterly result
The surge in profits boosted investor confidence. On November 3, the shares witnessed a rise after the quarterly results were announced. A few minutes after 10 am on November 4, the Ambuja Cements stock was trading at Rs 576.40, down Re 0.80 (or 0.14%). On November 3, Ambuja Cements shares opened at Rs 567.35 and touched an intraday high of Rs 582.70. The market cap reached Rs 1.43 lakh crore.
The 52-week high and 52-week low levels of the stock are Rs 624.95 and Rs 453.05. The stock has appreciated 6.39% in the past six months, 0.82% in the past one year and 132.26% in the past five years. The company has announced final dividend of 100% in June 2025. The promoter stake has risen from 67.57% to 67.68% in Q2FY26.
Quarterly performance
Net profit: Grew 364% year-on-year (Rs 496 crore to Rs 2,302 crore)
Revenue: Rose from Rs 7,552 crore to Rs 9,174 crore (+21.5%).
Operating profit: Rose by 58.5% (Rs 1,111 crore to Rs 1,761 crore)
Margins: Rose from 15% to 19%
EPS: Jumped from Rs 1.95 to Rs 7.14
Expansion plans of Ambuja Cements
The company management has taken up plans to raise capacity in FY28 from 140 MTPA (million tonnes per annum) to 155 MTPA. This increase can be implemented through debottlenecking at a lower cost of US$48 per tonne. The company will install 13 blenders at the manufacturing units in the coming 12 months to improve product mix, increase the share of premium cement, and improve realisation.
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