Ambuja Cements Limited (NSE: AMBUJACEM), part of the diversified Adani Portfolio and the world’s ninth-largest building materials solutions company, delivered robust financial results for the quarter ended 31st December 2025.
Ambuja Cements Ltd, the Adani Group’s cement flagship, today reported a complex set of Q3 FY26 earnings characterized by record-breaking sales volumes and the highest-ever quarterly revenue. However, the headline net profit witnessed a sharp 90.6% year-on-year (YoY) decline, falling to ₹204 crore, primarily due to a high base effect from a one-time tax gain in the previous year and escalating operational costs.
The Financial Dashboard: Q3 FY26 vs Q3 FY25
| Key Metric | Q3 FY26 (Current) | Q3 FY25 (Year-Ago) | Change (%) |
| Revenue from Operations | ₹10,181 Crore | ₹8,498 Crore | +19.8% |
| Consolidated PAT | ₹204 Crore | ₹2,158 Crore | -90.6% |
| Operating EBITDA | ₹1,353 Crore | ₹1,712 Crore | -21% |
| EBITDA Margin | 13.2% | 18.2% | -500 bps |
| Sales Volume | 18.9 Mn Tonnes | 16.2 Mn Tonnes | +16.6% |
Inside the Numbers: Volume Leadership vs. Margin Pressure
The quarter showcased Ambuja’s aggressive market share strategy. The company’s volume growth was 2x the industry average, fueled by the successful operationalization of the 2.4 MTPA Marwar Grinding Unit, which pushed total capacity to 109 MTPA.
The “Profit Paradox” Explained
The staggering 90% drop in net profit is largely a “paper decline.” In Q3 FY25, Ambuja recorded a one-time tax gain of ₹825 crore, which inflated the previous year’s bottom line. On a normalized basis (excluding this tax gain and one-off items), the company reported that PAT actually surged by 258% YoY to ₹378 crore.
Management Commentary & Con-Call Highlights
CEO Vinod Bahety struck a confident tone during the post-earnings call, focusing on the “One Cement” transition and cost leadership.
Mega-Merger on Track
The amalgamation of ACC Ltd and Orient Cement with Ambuja is progressing rapidly. Management expects the “One Cement Platform” to be fully operational by March 2026, aiming for a total capacity of 115 MTPA. This unified structure is expected to unlock massive synergies in logistics and capital allocation.
The “₹3,650 Blueprint”
Bahety reiterated the company’s ambitious goal to reduce the total cost of sales to ₹3,650 per tonne by March 2028. Key levers include:
Green Power: Increasing the renewable energy share to 60% by FY28 (currently at 36.9%).
Logistics: Reducing primary lead distance by another 50 km as the company reaches the 140 MTPA milestone.
Fuel Mix: Improving the Alternative Fuel Ratio (AFR) and leveraging Group synergies.
Leadership Transition
The board confirmed that Ajay Kapur will superannuate as Managing Director on January 31, 2026, with a new senior management team set to take over on February 1 to lead the next phase of the Adani Cement journey.
Investor Outlook & Market Reaction
Ambuja Cements’ Q3 FY2026 results paint a picture of a company navigating through a transitional earnings landscape while solidifying its volume leadership and strategic positioning in the Indian cement industry. The dual focus on capacity expansion and operational excellence, combined with a unified platform under Adani-led consolidation underscores management’s confidence in future growth, even as near-term earnings comparisons grapple with high tax-base effects and cost headwinds.
Conclusion
Ambuja is trading short-term margins for long-term dominance. While the operational costs are currently a drag, the company remains debt-free with a massive net worth of ₹69,854 crore. For investors, the “real” story isn’t the 90% profit drop, but whether the Adani Group can hit its aggressive cost-reduction targets once the ACC and Orient mergers are finalized.