Ambuja Cements Ltd (NSE: AMBUJACEM) Q1 2026 Earnings Call dated Jul. 31, 2025
Corporate Participants:
Deepak Balwani — Head of Investor Relations
Vinod Bahety — Whole-Time Director & CEO
Rakesh Tiwari — Chief Financial Officer
Analysts:
Satyam Kesarwani — Analyst
Rahul Gupta — Analyst
Atishy Rathi — Analyst
Harsh Mittal — Analyst
Amit Murarka — Analyst
Navin Sahadeo — Analyst
Rajesh Kumar Ravi — Analyst
Ritesh Shah — Analyst
Raashi Chopra — Analyst
Jashandeep Sing Chadha — Analyst
Jyoti Gupta — Analyst
Pathanjali Srinivasan — Analyst
Sumangal Nevatia — Analyst
Kunal Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Ambuja Cements Limited Q1 FY ’26 Investor Call hosted by Prabhudas Lilladher Private Limited. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Satyam Kesarwani. Thank you, and over to you, sir.
Satyam Kesarwani — Analyst
Thank you, Nithi. Good evening, and a very warm welcome to everybody.
On behalf of PL Capital, I am pleased to welcome you all to the earnings call of Ambuja Cements for the first quarter of financial year 2026. We are very happy to have the management with us today for the Q&A session with the investment community. The management is represented by Mr. Vinod Bahety, CEO, Ambuja Cements; Mr. Rakesh Tiwary, CFO; Mr. Deepak Balwani, Head of Investor Relations. We will begin with the opening remarks from the management, followed by an interactive Q&A session.
With this, I hand over the call to Mr. Deepak Balwani. Over to you, sir.
Deepak Balwani — Head of Investor Relations
Yes. Thank you.
On behalf of Ambuja Cement, I am pleased to welcome all participants to our earnings call for the first quarter of FY 2026. Ambuja Cement is the ninth largest building material solutions company globally and part of the diversified Adani portfolio. Ambuja Cement is one of the 4 large-scale cement companies globally and the only one in India to have a science-based net zero and near-term targets validated by the SBTi.
Before we start, please note that this call may include forward-looking statements based on our current beliefs and expectations. These are not guarantees of future performance and may involve unforeseen risks and uncertainties. We are pleased to have with us on the call Mr. Vinod Bahety, Chief Executive Officer; and Mr. Rakesh Tiwary, Chief Financial Officer.
Now I invite Mr. Bahety to provide his valuable insights on the quarterly performance.
Vinod Bahety — Whole-Time Director & CEO
Thank you, Deepak. Good evening, and a warm welcome to all of you joining us for the first quarter ’26 earnings call.
Ambuja Cement started this fiscal year on a high note. Our momentum is built on strong value focus, robust volume growth, price improvement, deeper channel engagement, premium product sales improvement, agile supply chain, stronger brand pull market across and smart cost efficiencies, amplified by seamless integration of Orient Cement, which we acquired in April ’25. We have reimagined business fundamentals. This has helped us achieve the highest revenue in a quarter, highest quarterly EBITDA and improve our market share by 2%.
Our channel network is vibrant. Our assets are reliable more. Our efficiencies have improved, and our EBITDA gains are well noteworthy. This sets a bold tone for the year ahead as we scale with purpose and precision. We are up on our demand estimates by 1% from 6% to 7% before to now 7% to 8%. Our consol financial performance highlights for the quarter are as under. Highest ever sales volume of 18.4 million tonnes, up 20% Y-o-Y with market share up 2% to 15.5%. Revenue crossed INR10,000 crores mark at INR10,289 crores, up 23% Y-o-Y with price gain of 4% supported by higher share of premium products as a percentage of trade sales, which is now at 33%, up by 43% Y-o-Y.
Cost has improved by INR119 per metric ton Y-on-Y. This has also supported in achieving the highest quarterly EBITDA at INR1,961 crores. EBITDA per metric ton of cement at INR1,069, up 28% Y-o-Y and EBITDA margin stood at 19.1%, up 3.8%. And we have a blueprint to achieve our targeted EBITDA of INR1,500 per metric ton by 2028. PAT, we have achieved at INR970 crores, up 24% Y-o-Y. Earnings per share at INR3.20, up 22% Y-o-Y and net worth stood at INR66,436 crores, and we continue to remain debt-free. Our rating remains highest at CRISIL AAA stable and A1+ ratings.
In the best interest of time, I’m not going to discuss the stand-alone financial performance of the listed companies separately as they are available on the stock exchanges. The merger of Adani Cementation Industries Limited has received all the statutory approvals. For Sanghi and Penna, we have received approvals from both the exchanges, BSE and NSE and further process of completion is ongoing. We continue to make decisive strides in operational excellence in the quarter, some of them are as under. We are proud to be the lead cement supplier for the world’s highest single arc Chenab Railway Bridge, which speaks volumes of our product quality and trust.
For the fourth year in a row, TRA Research has recognized us as the most trusted cement brand. This brand equity is also immensely supporting in terms of volume improvement and price improvements. Our privileged exclusive partnership with CREDAI has gone very well. Continuing this, we have launched NirmAAAnotsav program along with CREDAI wherein the first event took place in Ahmedabad, and this will be hosted in almost 20-plus cities going forward in this financial year. Our supply chain is becoming smarter, leaner and agile with AI-enabled technology. We are proud to be the first in the industry to adopt DigiPin.
We commissioned 5 million tonnes of capacity — grinding capacity over the last 3 months and target additional — another 13 million tonnes this financial year. We are getting younger with new assets, digitally smart platform and latest cohort of future young leaders fueling a culture of continuous innovation and excellence. Digitalization initiatives continue to be a focus area, leveraging the business growth with strong focus on EBITDA maximization, AI-driven advanced business and cost optimizer tools, end-to-end seamless applications of channel partners and the Plants of Future Concept is progressing very well.
On growth and journey expansion, our total cement capacity currently stands at 104.5 million tonnes. In our larger aim of achieving 140 million tonnes by FY ’28, we are well poised to achieve 118 million tonnes by end of FY ’26, powered by our strategic brownfield expansions across various sites, including Bhatapara, Salai Banwa, Dahej, Marwar, Kalamboli, Krishnapatnam, Bhatinda, Jodhpur and Warisaliganj. Our disciplined capex management is ensuring these time lines are met efficiently, enabling us to deliver both scale and profitability. On the cost leadership, our targeted cost reduction journey with the planned initiatives, primarily envisages, reduction in power and fuel costs, logistics costs and raw material cost optimization.
We have one of the lowest manpower cost at INR223 per metric ton among the peers in the industry. Green power share uptick with every passing quarter, it improved by 9.7% to 28.1%, and it’s targeted to reach 60% by FY ’28. This will reduce the existing power cost, which is around INR5.9 per unit to almost INR4.5 per unit by FY ’28. The power consumption per metric ton of cement also is expected to improve by at least 5 units. This is the efficiency of the new assets and the efficiency improvement of the existing assets. Coal cost has improved from INR1.73 to INR1.59 per 1,000 kilocalories and expected to sustain near these levels.
Importantly, the heat consumption will improve by at least 35 to 40 kilocalorie per kg of clinker for the various initiatives outlined, including mix of the new kilns. Primary lead distance reduced by 8 kilometers this quarter at 269 kilometers and is expected to further reduce by almost 75 kilometers when we achieve 140 million tonnes by FY ’28. This will help to reduce the logistics cost by almost INR150 per metric ton, also supported by a higher component of rail and sea logistics. Currently, our cost is almost around, say, INR3.25 per tonne per kilometer.
On the ESG leadership, Sustainability remains our strategic operating system as we are India’s only and globally the fourth large-scale cement company to have our science-based net zero and near-term targets validated by SBTi. We have commissioned 473 megawatts of renewable energy out of 1,000 megawatt, achieving almost 28%. As I mentioned earlier, we want to achieve 60% by FY ’28. Our green power share has risen consistently and it improved by 9.7% this quarter. We remain an industry leader, achieving 12x water positivity, 11x plastic negativity, exemplifying responsible stewardship.
We continue active global collaborations with WEF, DCCA, UNGC and AFID, reinforcing our commitment to setting and achieving ambitious environmental goals. On the community and social impact, we continue to positively impact our community through engagement initiatives in education, health care, livelihood and infrastructure. We are upskilling our communities through robotic labs, drone labs, rural KPOs, youth skilling, woman empowerment, creating a blueprint for our inclusive growth. Making the new era of a holistic education in the presence of our Board members, we inaugurated a new building of DAV ACC Public School Kalpshila and a Heritage Wing at our Kymore plant.
Through the Adani VidyaDan initiative, our leadership continues to inspire and shape the future of more than 10,000 students across the Adani Vidya Mandir, Chedi, campus institutions at our plants. In first quarter of ’26, we accelerated our efforts to build recognized and purpose-driven partnerships across our network. CEO Samvad, a direct engagement platform with channel partners and contractors has deepened trust through open dialogue, recognition and shared growth. These efforts have sparked a strong homecoming of more than 500 dealers, strengthening our distribution network and reaffirming the mutual confidence.
Adani Certified Technology, ACT, was implemented at more than 21,000 customer sites, enhancing the construction reliability and technical superiority, making a significant milestone in scalable impact and customer trust. With more than 325 skilled building workshops conducted, we have empowered almost 9,000-plus contractors, creating ripple effects in quality, safety and upskilling across the regions. CEO Club, a first of its kind recognition platform in the industry now anchors top-performing channel partners, contractors into a unified community. Through certified training, plant visits, safety gear distribution and family-focused experiences, we are building a family of builders aligned with our vision.
Dhanvarsha Gruhalaxmi Soubhagya Awards embodied emotional intelligence in action. This hybrid celebration through — brought together over 50,000-plus families of our dealers, merging performance with purpose and laying foundation for enduring relationships beyond the balance sheet. Coincidentally, today also, we have a program, which is for our influencers, which we will see more than 25,000 influencers online and offline coming together to celebrate a program similar to Dhanvarha. On the industry outlook, cement demand grew by almost 4% Y-o-Y in first quarter FY ’26, driven by Pradhan Mantri Awas Yojana, Pradhan Mantri Sadak Yojana, Bharatmala, Sagarmala and other infra projects. And we remain bullish for this financial year. We are upping our demand estimate by 1% from earlier 6% to 7% to now 7% to 8%.
I now invite our CFO, Rakesh, to detail our financials in detail further. Thank you.
Rakesh Tiwari — Chief Financial Officer
Thank you, Vinod, for giving such a strategic and comprehensive outline for Ambuja Cement. It was really great. Good afternoon, ladies and gentlemen. It’s a pleasure to connect with you all at this pivotal junction in our growth journey.
Over the last few quarters, we have consistently articulated our sharp focus on 4 key pillars: growth, cost leadership, ESG and stakeholder value creation. And I’m pleased to share that Q1 financial year ’26 has reinforced our conviction and momentum across all these dimensions. Our cement capacity has now reached 105.4 MTPA following the successful commissioning of Sankrail and Sindri brownfield grinding unit. We remain firmly on track to scale up to 118 MTPA by March ’26 and 240 MTPA by financial year ’28.
Our inorganic growth story strategy is progressing seamlessly. Sanghi, Asian, Tutikurand, more recently, Orient, which we have successfully integrated — the results were out a few days back, accelerating our market presence all across the geographies. Integrating synergies are being realized ahead of schedules, validating our disciplined M&A playbook. Alongside M&A, our greenfield and brownfield projects are designed with an emphasis on long-term competitiveness and roughly close to 40% of our capacity now falls under new generation assets that are optimized for capital efficiency, lower opex cost, increased use of renewable energy and improved logistics, including rail infrastructure.
In this quarter of ’26, we commissioned 57.7 megawatts of wind energy, taking our total renewable power to 473 megawatts. And additionally, our WHRS capacity stands at 228 megawatts. Together, our green energy is contributing close to 28.1%, underscoring our position as a sustainable leader in India. We are also laying a strong digital foundation for the future. Our end-to-end digitization of the value chain, from query to lorry, is yielding measurable operational benefits and improving EBITDA delivery.
Our cement network operating center is live — which is live at our headquarter are growing in its scope, enabling predictive analysis, real-time visibility and agile decision-making. So this is a transformative journey, and I’m proud that Ambuja is at the forefront of making this traditional industry younger, smarter and more efficient. We continue to maintain a fortress balance sheet. As of quarter 1 financial year ’26, our net worth stands at INR66,500 crores, up from INR63,811 crores in March ’25. We still are at debt-free with AAA rating, giving us a lot of headroom to fuel growth and return value to the shareholders.
To conclude, Ambuja is uniquely positioned at the intersection of capacity growth, margin expansion, digital evolution and ESG leadership. As the industry enters an exciting new phase, we are confident that our strategy and execution will drive superior stakeholder returns in the quarter and years ahead.
With that, I now hand over back to Deepak.
Deepak Balwani — Head of Investor Relations
Yes. Nithi, we can open the call for Q&A.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] the first question is from the line of Rahul Gupta from Morgan Stanley. Please go ahead.
Rahul Gupta
Hi, thank you for taking my question. My first question is, if we look at on a sequential basis, there is a sudden increase in power and fuel, logistics and other opex, even adjusted for volumes. Can you please help us understand in detail what’s happening over here? Thank you. That’s my first question.
Vinod Bahety
So Rahul, I’m presuming you are referring to consolidated financials, right?
Rahul Gupta
Yes.
Vinod Bahety
Okay. Just a second. If you actually refer to Rahul, and I’m not sure which line items you are referring to because there is an overall reduction in terms of the power and fuel and raw material on a Y-on-Y basis. So if you go to Slide number 12 of the investor presentation.
Rahul Gupta
So I’m looking at Slide 19, and I’m more concerned about quarter-on-quarter change. So any color on that will be very helpful.
Vinod Bahety
Just a second. Let me just go through the Slide 19 of the investor deck.
Rahul Gupta
Yes. That’s right.
Vinod Bahety
Okay. Let me just pull the particular slide, Rahul. So again, if you refer to Slide 19, and there is a reduction in — so the only point which is the other expenses, 12%. Otherwise, there is a reduction in all the other items around, Rahul?
Rahul Gupta
Not really, if you look at power and fuel, it has moved from INR1,263 to INR1,367, then freight forwarding…
Vinod Bahety
Comparing from Q1 — okay. But you’re comparing Q-on-Q, while I was referring to Y-on-Y. In terms of Q-on-Q also, Rahul, for example, when it was INR1,263 for the last quarter and with — for example, when you have these acquired assets, especially when you have now Orient also, there will be some disruption on the overall, say, cost compared to, say, March. So in March, for example, you didn’t have Orient and now you have, say, Orient. Second is, if you also noticed, the fuel cost impact has come down from INR1.74 to INR1.57 actually.
The second element of cost, which is the power cost, over there, I’ve highlighted that we have a higher, as of now, consumption of the power units and some of these, again, acquired assets have that, but there is a good opportunity for us to reduce by at least 5 units minimum in coming quarters in terms of the power consumption. So both this power and fuel basically will come back to the sequential numbers very soon. And in terms of the fuel, for example, we have demonstrated a sharp reduction by almost, say, 20 basis points this quarter compared to last quarter. And prospectively, also, I’m sustaining myself at those levels. So this is like one time when you have a quarter when you have an acquired asset, Otherwise, you will have a quite sustainable numbers on this front.
Coming to the other expenses, where, for example, my overall branding and sales and promotion expenses, we actually are investing into our marketing and brand expenses and our supply chain network. And you will see — and you have seen some uptick over there. And on top of it, the Orient asset also, for example, when you have acquired, it has also actually added to my overall other expenses. So this quarter, you will have to look with the color of Orient being acquired and consolidated as compared to the previous quarter. But on a Y-o-Y basis, you will see all of them are on a very really healthy trend even with the Orient acquisition.
Rahul Gupta
Thank you for the color. No, I understand that this is because of Orient acquisition, and that’s exactly why I want to understand this. What would be this number without Orient? Because see, Orient would not be that big in the overall consol numbers perspective, right? So any color from that perspective would be very helpful. And second, by when should we expect this number to normalize to pre-Orient acquisition levels? Thank you. These are my questions.
Vinod Bahety
Yes. No, I think, I mean, this quarter itself, you will see a sharp improvement on that. And in terms of my outline also when I said that now the assets have started generating — giving us good results. For example, my power costing with the renewables push this quarter has come down by 80 basis points per unit, right? So this quarter itself, you will see a good level of improvement in terms of sequential quarter. So that is how, for example, when we have this acquisition and when we have the duration, it will take you a couple of months here and there. But if you look at the volume part, and that is like very interesting. And all of my, for example, therefore, the acquired assets have done very well in terms of the volume part. So integration has gone very well in terms of the revenue, and therefore, you have seen a 20% jump on the volume part. And so far as the costs are concerned, like this quarter itself, you will see a good level of stabilizing there.
Rahul Gupta
Got it. Just for the bookkeeping, what would be volumes out of Orient business this quarter?
Vinod Bahety
No, I would refrain doing that because we — for example, as we have highlighted, overall 18.4 million tonnes because Orient and all these are part of the MSAs. And therefore, first, the Orient doesn’t have its own direct sales because we have migrated from Orient brand to now Ambuja and ACC. But happy to say that these assets, for example, are operating at a very healthy levels at clinker and cement both. And therefore, on an overall basis, we have a good healthy utilization of the cement capacity.
Rahul Gupta
Great. Just one final question. On an unadjusted basis, your volume grew by 20% year-on-year. Now when you say the industry grew by 4%, where would be Ambuja consol compared to that 4% for the industry?
Vinod Bahety
Ambuja consol is what we have said 20% overall improvement.
Rahul Gupta
Yes. But that’s unadjusted, right? I mean for fair comparison, when industry grew by 4%, then…
Vinod Bahety
Okay. Okay. Let us say if I — this is unadjusted here, right? So if I adjust and if I only consider Ambuja and ACC for the capacity, it comes to almost 13%, 1-3.
Rahul Gupta
Got it. Thank you so much. This is very helpful.
Vinod Bahety
Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Atishy Rathi from JPMorgan. Please go ahead.
Atishy Rathi
Yes. Hi, thank you for the opportunity. I just had 1 question. This is pertaining to Slide 18 of the deck. So I change in volume on a consolidated basis of 18.4% — at 18.2% for the last quarter in the deck. But if I look at the last quarter’s deck, the number was at 18.7% and the EBITDA on the EBITDA — total EBITDA hasn’t changed. So just trying to understand how should I reconcile the 2 numbers?
Vinod Bahety
So basically, what we have done because so far, CLC, which is like clinker plus cement, both were considered, but we are not in the business of selling clinker. We are more in the business of cement. And therefore, like all the other competitors, we also now will move into reporting in terms of factor of cement. And therefore, for example, what we have done is also for the March, 18.2% is a cement sale. The difference between cement and clinker, that 0.5 primarily is actually for the CLC factor. And therefore, 18.4% when I’m saying is purely cement sale. There is no clinker factor here. That’s how the whole basically calculation is. And that is how all the other industry players, what I understand, they do it, and that’s how we have also recalibrated and put it on basis of the cement volumes and therefore, EBITDA and everything as a factor of cement.
Atishy Rathi
Understood. Thank you so much.
Operator
Thank you. The next question is from the line of Harsh Mittal from Emkay Global. Please go ahead.
Harsh Mittal
Thank you for the opportunity. Good evening. Firstly, congratulations to the management for a great set of numbers. Sir, my question was pertaining towards the earlier participants concern on the volume front. So continuing with this statement, if I just exclude Orient and Penna Cement volume in this quarter, we are standing at around 1%, 1.5% of volume growth Y-o-Y. Is it a fair set of assumption, sir?
Vinod Bahety
No, no, no, absolutely not. Absolutely not. In fact, as I said, if I if I adjust, for example, the acquired assets, I’m sitting on still a very good healthy volume growth of 13%.
Harsh Mittal
Sir, what would be the volume for Penna Cement this quarter, if you can just share that number?
Vinod Bahety
Penna, Orient and Sanghi, for example, like as a fact, for example, we are at 18.4 million tonnes for a capacity which has now gone up to 105. And you can safely assume that the average capacity would have been almost 95. So therefore, on an overall capacity utilization, I’m around 77% to 78%, yes? So please allow me to give a larger volume instead of going with — because all of these are companies under the MSA. So it will be inappropriate to give you for individual unlisted company. It will be better to speak on a consol volume and a consol capacity. I can give you this indication — this number that around 78% is the capacity utilization.
Harsh Mittal
So that was my question. Thank you.
Vinod Bahety
Yes. So this will answer you. Now you can do your math actually.
Operator
Thank you. The next question is from the line of Amit Murarka from Axis Capital. Please go ahead.
Amit Murarka
Yes. Thanks for the opportunity. So the first question is on capacities. I see that the time lines are no longer indicated in the presentation as to what is the commissioning for each of those capacities which you were giving earlier. So like what is the updated time line now, if you could shed some light on that?
Vinod Bahety
Okay. Amit, perhaps I think because we are actually hitting now. So out of, say, earlier, we used to indicate almost like 18 million tonnes, out of which has already been achieved. So 13 is also in fairly advanced stages of each passing month, I’m going to announce the commissioning. So I can tell you that this quarter, you will see some of these capacities. And by, for example, December, most of my capacities will be there, including Salai Banwa, the Penna, Jodhpur, the Bhatapara and a couple of more. And then by March, whatever we have indicated here is what, for example, we are going to achieve. So 118 million by fiscal year FY ’26 is there to be achieved.
Amit Murarka
Sure, sure. Got it. And Bhatapara, like it’s facing some delays is what I understand because if I remember right, you had earlier indicated March ’25 as commissioning. So like why is it getting delayed? I mean, frankly, like concern is more around because what I want to understand is that the Chinese equipment is what these plants are based on, and we have been reading that Chinese engineers are not being allowed into the country. So is it something to do with that? Or like is there any other issue here?
Vinod Bahety
No, no, per se not, like in fact, we already have this particular company who is the vendor which you’re referring to, already like a vendor to us for a couple of our other assets. So we don’t see any issue on that. This March, what you are indicating is something which is our management target. And so far as — but the outlined timing is concerned, we are well on that. I don’t see any per se any issues over there. So to rest you on any anxiety, no concerns on the vendor, no concerns on the execution and completion. Of course, projects of this case, for example, when you have a brownfield expansion, a couple of months here and there because you are operating for — you are actually executing in an established asset, which is also should not be delayed in any form and manner. So these are like very nominal months, a couple of months here and there. I don’t see any issue or any anxiety over there.
Amit Murarka
No, thanks for clarifying. That’s very comforting. Also, if you could provide like the cash position at the end of June?
Vinod Bahety
So Amit, we can pick up from where we left. And I think March end was almost INR10,250 odd-crores, if I remember. And from there, for example, when I look at the overall cash flow, we are sitting right now closer to INR3,000-odd crores. And this includes the overall acquisition of Orient, then also my capex of almost INR2,000 crores, which has been for the June quarter, then almost INR600 crores — INR550 crores to be precise for the dividend and so on and so forth. So overall, basically, right now, we are holding INR3,000-odd crores of cash and cash equivalents.
Amit Murarka
Sure. And lastly, what was the effective date of…
Operator
Asking you to rejoin the queue for the follow-up question. Thank you.
Amit Murarka
Thank you so much.
Operator
Thank you. The next question is from the line of Navin Sahadeo from ICICI Securities. Please go ahead.
Navin Sahadeo
Yes. Good evening.
Vinod Bahety
Good evening.
Navin Sahadeo
Vinod-ji, Rakesh-ji, thank you for the opportunity. Two questions, and I think that is similar to what Amit was trying to ask. Is the effective date for Orient is 22nd April to be merged or consolidated. Or will it be 18th June to understand the integration better?
Vinod Bahety
Yes. Navin, it is 22nd of April.
Navin Sahadeo
Understood, sir. And my second question was on the overall like cash outflow towards capacity creation. So as you mentioned, current cash balance is more like INR3,000 crores. So just wanted to understand how much do we have to pay for Penna because I believe there was some retention money and of course, subject to the capacities which were to get commissioned. So 2 parts of the question is, how much money for Penna is likely to be paid? I’m assuming it will happen this year. And when will the Penna capacities, especially the clinker in North will come on board?
Vinod Bahety
So Navin, clinker should be coming to us in, let us say, Q2 itself, by back end of September. And so far as — then there are a couple of other assets like Krishnapatnam, which will be there and a small capex at Kandur. So these are all actually going well so far as Penna assets are concerned. And when we have factored in the capex program, the balance small payments which are left to be paid, those will be paid within the overall — our contractual in terms of the SPA, yes. But in terms of the progress on the Jodhpur asset, it is absolutely bang on time, progressing well. And personally also a couple of times a beautiful asset, which has come out actually. And this was like technology.
Navin Sahadeo
Only one related just clarification. So of course, you said Penna’s balance payment is included. So is it safe to assume INR10,000 crore kind of capex for FY ’26 as a number?
Vinod Bahety
You can consider maybe a couple of thousands. So you can actually consider a ballpark INR1,000 crores here and there. So INR10,000 crores is a good amount to assume. Yes. I would have considered between, say, INR9 crore to INR10 crore, but yes, INR10 crores is okay. And that includes Penna also. Penna, of course. So all in INR9,000 crores kind of an outflow for ’26.
Navin Sahadeo
Thank you, sir. Thank you so much.
Operator
Thank you. The next question is from the line of Rajesh Ravi from HDFC Securities. Please go ahead.
Rajesh Kumar Ravi
Good evening, and congrats on good set of numbers. Firstly, could you share the volume numbers for the full year now adjusted for the clinker sales? And second, on the — can you share for the 2 listed subsidiaries, Orient and ACC, what would be the capex in these 2 companies individually? And what are the capacity enhancements for Orient, particularly, there were talks of a grinding unit and a clinker expansion in Karnataka and a grinding unit in MP. And similarly for ACC, any progress on the Wadi clinker or any other assets beyond what we have recently commissioned?
Vinod Bahety
Yes. Thanks, Rajesh. To first start with — your question was what is the overall — your question was about the overall volume.
Rajesh Kumar Ravi
Sales consol volume ex of clinker sales for full year.
Vinod Bahety
Yes. So as I — for the full year, while in terms of the capacity, as I mentioned, we are targeting to hit 118 million tonnes, yes. And what is my overall estimated volume, that is like, for example, you can broadly consider the current trend of 75%, 78% and that you like extrapolate that. So far as the second question, which is about the capex at Orient, I think right now, our priority is to improve the overall efficiency at Orient than immediate expansion. And therefore, this financial year, it is more of achieving the desired cost numbers and some of the debottlenecking.
But definitely, there’s an opportunity for us as the previous promoters also were doing in terms of expansion at Chittapur and a bit of at, say, Devapur. But that is like we will look at it in the next financial year. So as far as MP is concerned, again, that’s, for example, we’ll work it on, but not an immediate priority. The immediate priority for us right now is the 7, 8 sites, which I mentioned to you, which are strategically well located and integrate very well in our overall plan of 140 million tonnes, yes. More detailed plan for Orient in terms of the growth will come out separately. Is that good for you?
Rajesh Kumar Ravi
Capex at ACC.
Vinod Bahety
So far as ACC is concerned, as you know, Ametha was the one which we did followed by acquisition of Asian and now Salai Banwa right now is progressing very well. And in next few months, you will see Salai Banwa up and running. Salai Banwa, as you know, is a new stream. Then again, for ACC, I’ve been highlighting our focus has been in terms of improving its, again, cost efficiency, its green power, WHRS. Apart from Salai Banwa, if you also know, Sindri, we have expanded when we announced in March in terms of expansion. So Sindri, Salai Banwa, Wadi line is also very much in the plan, and that is in the drawing boards.
And I have highlighted before, the dismantling of the Line 1 has already been commissioned. Therefore, that is very much in the pipeline. But not for this financial year, it will be limited initial groundwork, but it will come in the next financial year. So these are like the capex program for ACC, but more importantly is on the efficiency factors because the bridge between the overall EBITDA for ACC versus other peers is what, for example, we will bridge it very fast. And as you see that in last many quarters, ACC has been catching up on that.
Rajesh Kumar Ravi
So out of this INR9,000 crores, INR10,000 crores, how much of the capex can work out in the stand-alone ACC…
Operator
Sorry to interrupt, but I…
Rajesh Kumar Ravi
I just complete this part.
Vinod Bahety
Nithi, I will just answer that. So Rajesh, generally, like you will have a factor of 75-25 between parent company and — so which is like Ambuja and ACC. Sometimes 70-30 or 75-25 kind of thing.
Rajesh Kumar Ravi
Okay, great. I’ll come back in queue, Sir. Thank you. All the best.
Operator
Thank you. The next question is from the line of Ritesh Shah from Investec. Please go ahead.
Ritesh Shah
Hi sir, thanks for the opportunity. A couple of questions. Sir, first is on ACC. There was a significant cost bump on a sequential basis for both raw mat as well as other costs. How should one look at it? And is it by any means tied to a few clinker units that we have actually shut down in South? Is it because of higher interregional trade, higher clinker costs? How should one read into that?
Vinod Bahety
Sometimes — so Ritesh, as you know, that given the early set of monsoon, which started in June, basically, what we’ve also done is in terms of the scheduled maintenances and therefore, like Wadi and all, for example, which is ACC, we have actually done that. So therefore, you will find a bump whenever you have a scheduled maintenance, you will generally find a bump in the particular quarter, but which will get — but on an overall year basis, you will see it gets neutralized basically. So the benefits of that will come in the subsequent quarters. So that was like, say, one part.
And again, like in terms of the other expenses, I actually mentioned earlier that some of the — especially for ACC in terms of the settlement cost, the VRS, the employees separation and also in terms of the brand promotion and sales promotion activities, which will get intensive this year and lots of investment is being done on the brand equity, on the channel vibrancy. I also put in my initial remarks, and you’re already seeing the results of that in terms of the price improvement, in terms of the overall, say, volume improvement. This will continue. So the delta positive impact is coming on the revenue part, while some of the investments will happen in terms of this brand and sales promotion, yes. So those are basically the trend.
Ritesh Shah
Sir, my question is basically, we have taken out Wadi 1, Bargar and Chaibasa. So how are we substituting that clinker for the use for ACC?
Vinod Bahety
Yes. So therefore, like if you see in the MSA, there’s also a good movement of clinker between Ambuja and ACC. So the high-cost clinker, which goes off of ACC, almost like if I have to highlight between ACC and Ambuja, this time, clinker movement has been almost like 0.47 million metric tons. So it gets supplied, for example, so Bargar and Chaibasa, so I have, say, Penna assets now I have got, say, Orient also. So sometimes when Wadi is down and I have say Sitapur for Orient, which is available to supply so and so forth. So therefore, the logistics-wise, whichever is best suitable is what we use in terms of the clinker movement and therefore, supplies of cement. So don’t worry, the balance of — if you look at the overall balance of the cement versus clinker, it is well balanced.
Ritesh Shah
Sir, my second question is…
Vinod Bahety
64 million tonnes of clinker capacity, and I have almost 105 million tonnes of cement capacity. So you can apply the factor and then it is well balanced.
Ritesh Shah
Sir, quickly second question. Am I audible?
Vinod Bahety
Yes, please.
Ritesh Shah
Sir, during the Marwar Day, you had indicated that we are looking to simplify our marketing structure. We’ll have like only 3 layers. Have you already progressed on that? What should we make out of that particular outcome? That’s one. And other quick one is one of our peers has announced commercialization of calcined clay. You did elaborate quite a lot on ESG. Is this particular variable up for us on priority? If not, why so? Thank you.
Vinod Bahety
No. So Ritesh, as you know, like calcined clay or otherwise, if you have fly ash and PPC, I think I would say that I am sitting on a huge opportunity of fly ash. And therefore, those who don’t have the opportunities, they will look around for different types of products, but we have a natural advantage and as a good synergy. So therefore, I would right now focus on — and there is no better substitute to fly ash actually because the whole chemical process of fly ash, which blends with cement, the cement quality and the cement strength is far, far superior and which is well demonstrated in many labs also, point number one. Point number two, and therefore, the calcined cement and all the specific applications and all are, for example, different to what normally cement can be. Point number two, what was your second question, Ritesh? The 3 layers.
Ritesh Shah
On the marketing side…
Vinod Bahety
That is more internal, Ritesh. I think not right to discuss on this forum. But yes, we are simplifying. And we — as I said, we are reimagining the whole structure, the whole org structure, the whole plant structure, and you will see prospectively a positive impact and results out of it. But exactly, that’s not the point to discuss on this forum, Ritesh. Offline, we can connect on that.
Ritesh Shah
Sir, can I just squeeze in one. In your initial remarks, you indicated…
Operator
Sorry to interrupt, but I request you to come back for the follow-up question, please.
Ritesh Shah
Sure, thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Raashi Chopra from Citigroup. Please go ahead.
Raashi Chopra
Thank you. Just had a question on realizations post the quarter. How have the realizations been across different geographies?
Vinod Bahety
Raashi, thank you. I’m very upbeat about the realization, although you will — definitely through your channels, you will get a different impression. But especially when we are focusing on solutions-oriented cement and therefore, for example, at least we have the strong brand equity, and we are actually able to get the right price. And we have also upped the price of our premium cement, while you would also hear this positive from our side. So I think realization is better off only, and it will remain better off for the leaders and those who are decisive in terms of providing high-quality premium cement and addressing the solutions.
And with good investment on brand equity, I think it is also seeing a good churn and volume movement. So that is like my submission overall, but we will see different views from different corners of the industry, but I would refrain because sometimes — we are now following and bringing a good discipline in terms of adhering to the whole channel network and in terms of pricing and all. So that will continue as a trend from our side.
Raashi Chopra
So just to understand this, are prices today better than what you exited in June?
Vinod Bahety
I won’t say because that is like, again, I’m saying June, you have seen a healthy improvement in prices. And I can only say that our focus in terms of continuously addressing to the requirements of the customers is only going to help us and differentiate us better as compared to the industry in terms of prices. Yes. But I remain positive on demand and I remain positive on this factor also.
Raashi Chopra
Got it. And just on the cash that you said, INR3,000 crores, this is on a consolidated basis, including Orient, everything?
Vinod Bahety
Yes. Now because this call, generally, we always speak about consol because companies have their own MSAs and different companies are investing and they share the assets and also MSAs, it always makes sense to discuss consol.
Raashi Chopra
So on the cash balance of INR3,000 crores, possible to split it up between ACC, Ambuja and Orient?
Vinod Bahety
I would say that as of now, I don’t have direct information. But yes, it is broadly between Ambuja and ACC, you can say 60-40 or 50-50. So that’s the trend. Sanghi and Orient and Penna, for example, they would not have barring the working capital because the cash flows have been used to make them debt-free also. So Raashi, therefore, the major cash is line with Ambuja and then ACC. So that is like, for example, a broad split. And yes, so Sanghi, Penna and Orient would not be sitting on that. Otherwise, their minimum working capital.
Raashi Chopra
Thank you.
Operator
Thank you. The next question is from the line of Jashandeep Chadha from Nomura. Please go ahead.
Jashandeep Sing Chadha
Yes, thanks for the opportunity, and congratulations on a good set of numbers, sir. Sir, my first question is regarding the cost saving target, which you gave last year or maybe last year of INR530 per tonne. I understand there are some consolidation costs and higher fixed cost because of the assets that…
Vinod Bahety
Jashandeep, we are not able to hear you.
Operator
The current participant has been disconnected from the line. We move to the next one?
Deepak Balwani
Yes, Nithi, please move to the next one.
Operator
The next question is from the line of Jyoti Gupta from Nirmal Bang. Please go ahead.
Jyoti Gupta
Good evening, sir. Congrats on good set of numbers. I just wanted to understand what has been the contribution of South-based plants in terms of EBITDA per tonne. And since we are expecting that the prices in the South will further strengthen, will that have a significant impact on your EBITDA per tonne? And the second part is that while we have taken an estimate of EBITDA per tonne improvement of almost like INR550 till FY ’27, I think this year alone from cost, we should be somewhere — I mean, price increase should be commensurate to the overall EBITDA per tonne with cost. So what is your sense that where should we end this year in terms of overall consol Ambuja’s EBITDA per tonne.
Vinod Bahety
Thank you, Jyoti. Jyoti, as you know, like South is now — we have a good large share as part of my overall capacity, almost 26%, wherein like — while West is, say, 23%, which is disclosed on Slide number 15 of my investor deck. Now definitely, South has been a good contributor for the June quarter. But South, you know that how it works because of the excess capacity, therefore, you cannot predict in South generally. But I’m bullish with respect to demand, and therefore, I’m also positive with respect to prices. I won’t comment about the overall price expectations or the EBITDA expectations, but I can only say that the EBITDA, which we have highlighted and given and reported is what the EBITDA we are targeting to sustain and improve from here. And therefore, like both the demand and prices, I’m positive. Giving specific numbers will not be possible and will also not be appropriate.
Jyoti Gupta
Thanks, sir.
Operator
Thank you. The next question is from the line of Jashandeep Chadha from Nomura. Please go ahead.
Jashandeep Sing Chadha
Yes. Hi sir, am I audible now?
Vinod Bahety
Yes.
Jashandeep Sing Chadha
Yes. Hi, sorry for that, and congrats on a good set of numbers. So firstly, I want to ask about the cost savings target that we gave of INR530 per tonne. And I understand in the last few quarters, there have been some consolidation cost because of the assets we have acquired. But if you want to do an apple-to-apple comparison from FY ’24 base, how much of the cost benefits would have come in based on the initiatives that you’ve taken? And what major heads will those be? If you can give insight on that, that would be great.
Vinod Bahety
Yes. So Jashandeep, so you’re right, the journey of INR530 continues. And if I have to give a broad range, we would have hit almost 35% to 40% of that journey by now. So let us say, closer to INR200 a tonne basically and INR175 to INR200. Now primarily, let us say, power is one of the factors, which — with the green power. Second is now you will see on the fuel side, for example. And third is the logistics. These are like my primary and of course, my raw material cost, which we have sustained with advantage in terms of the long-term agreement on fly ash, which we have entered into on a competitive bid basis with the group company and all. So I think raw material, we have sustained. And from here onwards, I’m going to see improvement on raw material, continued improvement on the power and the efficiency of the power also and also the heat consumption and — heat consumption while we’ll sustain and improve on the coal cost.
These are like the major factors and apart from that, logistics cost. With every improvement and increase in my grinding capacity and location, therefore, my overall lead distance comes down. And we’re also working on a few initiatives on EV and all, which will actually bring down the overall PTPK. So these are like broad numbers and therefore, gives me much more high visibility to achieve. Even for the acquired assets, they will actually complement and help us to move on our INR530 reduction. So I’m quite bullish about that. And this quarter, for example, which we had to fix some of the issues on the revenue part, which we have done successfully and which we will see a further improvement on that part with a more vibrant channel network and all and cost anyways remains our forte and focus. So both will complement now to each other. And hence, my overall comfort to sustain and improve the EBITDA from here further is very high.
Jashandeep Sing Chadha
Understood, sir. Just an extension to this before I ask my second question. On a consol basis, does your INR530 target still is there? Because why I ask is because when you gave this target, Orient was not in picture. Now Orient comes in, and I believe there will be some capex involved to bring it to Ambuja’s cost structure. Just want to understand on a consolidated basis, on an increased capacity, is it still INR530 over FY ’24 base or the number has changed — the target has changed?
Vinod Bahety
No, it continues. So even like, for example, when we had given the numbers, we had envisaged that there will be some acquisition in the north. Therefore, we will adhere to that number.
Jashandeep Sing Chadha
Understood. My second question is largely, sir, I think I heard you…
Operator
But I request you to come back for the follow-up question. Thank you. The next question is from the line of Pathanjali Srinivasan from Sundaram Mutual Fund. Please go ahead.
Pathanjali Srinivasan
Thank you for the opportunity. I have a couple of doubts. I don’t know if I may have missed it, but our other expenses on our presentation, it mentioned INR678 crores, but there’s a footnote that says excluding new assets and onetime gain. Could you quantify or mention whether these are like start-up costs or something because of the integration of the new assets? Or what is the difference? Will it continue? Or is it a onetime expense?
Vinod Bahety
So you’re referring to the other expenses, which is INR678 crores versus INR699 crores of March and INR689 crores of June. Is that the number you’re referring to?
Pathanjali Srinivasan
Yes. Because if I take it on a reported cost basis, it is INR788. But in the presentation, it’s mentioned as INR678. So I think there’s a delta of about INR110.
Vinod Bahety
The onetime gain in — which was there in the previous year. So we have actually put it aligned with the comparison. And therefore, comparison on Y-on-Y basis is what we have done. And if you see the footnote also, which is there, so it excludes the new and it also excludes the onetime gain of the previous year.
Pathanjali Srinivasan
Okay. So it will not be recurring. Would that be the right understanding for this?
Vinod Bahety
The gain was not recurring. Therefore, it has been — it has…
Pathanjali Srinivasan
No, no, the asset cost. The new asset cost, it won’t be recurring, right?
Vinod Bahety
Yes, that will not be recurring. That will not be recurring. And therefore, you will see now a considerable improvement on these other expenses.
Pathanjali Srinivasan
Okay. Sir, and just one last question, sir. Like between ACC and Ambuja, why do we see such a big difference in profitability? Like given that this quarter, South prices went up, ACC has better region presence in South and East, but ACC still reported very weak numbers compared to Ambuja.
Vinod Bahety
Not — so Pathanjali, thank you, but not very weak, for example. Let us say, yes, ACC has its own. And from beginning, if you know, a, the advantage Ambuja has is with respect to the captive coal mine, while ACC is all a third-party purchase. So that is like — so because fuel becomes an important factor. Then in terms of the power cost also because of, again, the vintage and legacy of ACC, therefore, the power cost also when I look at it, broadly in case of ACC, it is almost like INR6.10 per unit compared to when I look at Ambuja, it is, say, INR5.30. On an overall basis, it becomes INR5.90. Then some of the efficiency investment, which are in process, but Ambuja has a higher WHRS factor, almost 21%, while in case of ACC, the WHRS factor is 14.14.
Now there is a reason. Therefore, I said for ACC, our primary efforts are to work on the investment and the efficiencies gain on the cost, and that will help us to bridge this gap of whatever, INR300, INR400 a tonne and come to 4 digits sooner for ACC as well. Of course, the brand equity, the brand pool has now started giving us very good results and more so the ACC pool of blockbuster products in the industry in terms of the premium. And therefore, more and more focus on that will also help us to further improve the top line and the realization, which has happened, in fact, this quarter also. But this certain — which is like a time bridge. So investments are being done. They are in the plan. And therefore, this journey of cost improvement when we say it, it has actually a significant improvement of cost journey for ACC.
Pathanjali Srinivasan
Sir, I see a lot of spends being done for ACC in terms of market…
Operator
Sorry to interrupt but I request you to come back for the…
Pathanjali Srinivasan
It’s a continuation of the previous question. Sir, can I continue?
Vinod Bahety
Nithi, allow, please. Yes, Pathanjali.
Pathanjali Srinivasan
Yes, sir. Sir, so we see a lot of brand spend, sir, that is being done for ACC, but the pricing gap between ACC and Ambuja is still pretty elevated. So are we positioning the 2 brands slightly differently in the market? Or is it — is there any other factor to it that I missed to note down?
Vinod Bahety
Each of them — both the brands have this strong brand equity and both the strength of the brand equity is leveraged very prominently now. So there is no per se promoting differently, but using their own advantages. So in many pockets, ACC has a better price compared to Ambuja for the brand equity. And in many pockets, Ambuja has because they have the natural strength. For example, East and South is where ACC has been very dominant from past and the North and West is where Ambuja has been very dominant from past. And that continues. In fact, now with the synergy, the blend is actually helping us on an overall basis. So please look at it on an overall basis. And of course, ACC with its brand equity strength, it is getting the price benefit. Therefore, my overall consol and also stand-alone ACC, you will see a good improvement in the price per bag.
Pathanjali Srinivasan
Sure. Thank you so much.
Operator
Thank you. The next question is from the line of Sumangal Nevatia from Kotak Securities. Please go ahead.
Sumangal Nevatia
Yes, thank you, sir. Most of the questions are answered. Sir, just 1 or 2 left. One on the next phase of expansion, which is 21 million tonnes, what is our preparedness? And I mean, if you can give some color as per — will it be largely greenfield now given the brownfield phase is in the first phase? And also what are preferred locations?
Vinod Bahety
So Sumangal, good question again. The 21 million, which will — actually from FY ’27, ’28, basically, lots of groundwork has been done. So groundwork in terms of land, in terms of the overall approvals of CTOs, environmentals, public hearings, for example, lots of this groundwork has been done. And therefore, it will not take more time when we actually start the project execution. And therefore, preparatory civil work, basic civil work and preoperating expenses and all, for example, in some of the sites have already started to happen, including appointment of the technical consultants and owners, engineers and so on and so forth. And importantly, in terms of our negotiations with the vendors as well, which is already at a very, very advanced level, and you will hear positive developments on that front also. So that 20 million tonnes is also well on track and therefore, very confident to achieve 140 million by end of March ’28.
Sumangal Nevatia
And sir, some color on which regions will be the priority there? Any mix in the geographical mix are we looking at?
Vinod Bahety
I think primarily, I think we are like pan-India. But if you be more specific, then North, you will see a good capacity. In center also, you will see a couple of assets that — it’s already we have commissioned. Therefore, for example, East, I have already seen those additions. A couple of them in West. So you will see actually, so that will balance it out because right now, the centers, we are, on an overall basis, 8% of my cement capacity, we will see more of this balancing happening across these 5 regions of the country. So it is not per se biased towards any particular belt.
Sumangal Nevatia
Understood. Understood. And sir, for the JPA bid, what would be our strategy in case we win for the non-core assets?
Vinod Bahety
Sorry, I could not follow, Sumangal.
Sumangal Nevatia
Sir, we are keen to acquire JPA through the NCLT. So what would be our strategy for the non-core assets, which comes along with the cement assets there?
Vinod Bahety
So Sumangal, basically — as you know, Adani Enterprises Limited as a company has actually applied for that and therefore, would not be fair from my side to comment. And hence, cement and non-cement as a complete package, it’s AEL which actually we have applied for it. So I would refrain then anything further on that.
Sumangal Nevatia
Okay. Thank you, sir, for the clarification and all the best.
Vinod Bahety
Thank you.
Operator
Thank you. The next question is from the line of Kunal Shah from DAM Capital. Please go ahead.
Kunal Shah
Yes. Just one question from my end. So just wanted to understand how is the brand integration process progressing in South, especially from Penna’s plant, like any positive or negative surprise there? And specifically, how is Ambuja’s brand positioning in the trade channel in South?
Vinod Bahety
Very positive, Kunal, very positive. In fact, why Penna. In fact, now Orient also completely brand penetration has happened and migrated to Ambuja and ACC. So both, for example, Penna and Orient have done very, very well. Dealers have received it very, very well. All the dealers have also got onboarded into Ambuja and ACC platforms. So in terms of my overall volume improvement, for example, and when you see — and you can — obviously, you can do an assessment because when I say — when I do the adjustment, 13% is there and without adjustment, almost say 20%. So this 7%, 8%, which has come from Orient also and Orient and Penna is nothing but coming from this integration and penetration of this brand of Ambuja and ACC, and they have also helped us to improve with a better price realization. So I’m very happy with this transition.
Kunal Shah
Just clarifying this one thing, like geographies of North and West where Ambuja is specifically A or A+, is it the same positioning in South also where Ambuja is not present like AP, Telangana, Tamil Nadu? So just wanted that with clarity.
Vinod Bahety
No. So yes, I think from a positioning perspective, both Ambuja and ACC remain as the A category brands pan-India, including South.
Kunal Shah
Understood. This is very helpful, sir. Thanks a lot.
Operator
Thank you. Ladies and gentlemen, we’ll take this as the last question for today. I would now like to hand the conference over to Mr. Deepak Balwani. Over to you, sir.
Deepak Balwani
Thank you. I trust that most of your questions have been addressed. Should you wish to discuss any outstanding query, we are available for a separate conversation — feel free to call me. Thank you.
Vinod Bahety
Thank you, Nithi. Thank you, everyone. On behalf of sell-side market, thank you all again.
Deepak Balwani
Thank you.
Operator
[Operator Closing Remarks]