Sanghi Industries Ltd (NSE: SANGHIIND) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Deepak Balwani — Head, Investor Relations
Vinod Bahety — Chief Executive Officer
Rohit Soni — Chief Financial Officer
Analysts:
Krupal Maniar — Analyst
Navin Sahadeo — Analyst
Ritesh Shah — Analyst
Rahul Gupta — Analyst
Siddharth Mehrotra — Analyst
Amit Murarka — Analyst
Raashi Chopra — Analyst
Jyoti Gupta — Analyst
Jashandeep Singh Chadha — Analyst
Prateek Kumar — Analyst
Ashish Jain — Analyst
Pinakin Parekh — Analyst
Rajesh Ravi — Analyst
Kunal Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Ambuja Cements Limited Q3FY26 earnings conference call hosted by Antique Stoke Broking. As a reminder, all participants line will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Krupal Maniyar from Antique Stockbroking. Thank you. And over to you.
Krupal Maniar — Analyst
Thank you Ikra. Good evening and a warm welcome to everyone. On behalf of Entec Stockbroking we welcome. You all to the third quarter FY26 earning call of Ambuja Semis Ltd. I will now hand over the call. To Mr. Deepak Balwani, Head of Investor Relations. Thanks. And over to you sir.
Deepak Balwani — Head, Investor Relations
Thank you. On behalf of Ambuja Cement, I am pleased to welcome all the participants to our quarterly FY26 earnings call. Amuja Cement Limited is part of the diversified Adani portfolio and the world’s ninth largest building material solutions company. 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 risk and uncertainty. We are pleased to have with us on the call Mr. Vinod Baherti, Chief Executive Officer and Mr. Rohit Soni, Chief Financial Officer. Now I invite Mr.
Vinod Bhai to provide his valuable insights on the quarterly performance.
Vinod Bahety — Chief Executive Officer
Thank you Deepak. Good evening and a warm welcome to everyone joining us for the third quarter results of FY26. This has been a decisive and strategically important quarter for Ambuja Cement. We delivered industry leading performance growing our volumes at two times the industry average. This was supported by stronger market execution, improved availability across both trade and non trade channels and higher base capacity utilization. Our actions on premiumization and mix improvement helped us capture significantly higher market share, better realization than the peers and thereby reinforcing our leadership position.
The operating environment remained favorable throughout the quarter. Cement demand growth was driven by infrastructure activity, sustained housing demand and a recovery in these rural construction after a favorable monsoon. A defining development this quarter has been the proposed amalgamation of ACC and Orient Cement with Ambuja Cements. This marks the beginning of a unified one cement platform that will accelerate our growth trajectory, support EBITDA expansion, strengthen operational excellence, leverage, improve logistics density and enhance capital efficiency. We see this driving long term value creation over the next 24 to 36 months. Regulatory approvals are progressing quite well. We are seeing an early operational success across the acquired assets.
The capacity utilization for the quarter improved meaningfully for the acquired assets at 58% improvement of 21% compared to the previous to the last year. Y on Y which was at 37%. Utilization had further improved. The exit of December by the way is 65% although my quarter average is 58 for the acquired assets but the exit is at 65% and we are confident and looking forward to achieve almost 80% on these acquired assets. These outcomes reflect disciplined execution of our integration and optimization playbook. Pricing has entered January on firmer ground as we are seeing a similar uptick in price in January along with double digit volume growth.
Southern markets are leading increases in the range of 15 to 20 for non trade while the northern market has witnessed price increase in the range of 5 to 10 in non trade range. Importantly these hikes have held making a departure from the rollback prone patterns of the previous years with a comprehensive focus on value and market share realizations. Improved rupees five per bag as compared to last year. Trade pricing continues to outperform non trade with gaps widening up to 31 rupees per bag as non trade remains more sensitive to the infrared offtake and seasonal disruptions on capacity.
We commissioned 2.4 million tons of Marwar grinding unit ahead of the schedule. With this addition our total capacity now stands at 109 million tons per annum. We were looking earlier at 120 million tonnes in FY26.2 million tonnes of Sindri and Jammul has been also been included here in addition to our 118 million tonnes of target. But the Varsali guns commissioning is now scheduled for first quarter of 27 so there is a delay of three months in Varsaligans such that now we will be exiting March at 115 million tons as compared to earlier 118. Alongside this we are unlocking an additional 15 million tons of debottleneaking capacity at lower capex cost.
These initiatives will provide a clear and capital efficient pathway to reach our aim of hitting 155 million tonnes by March of 28th which will position us strongly for sustained growth. Premiumization continues to be a powerful value driver for us. Premium cement volumes accounted for 35% of the trade sales and in absolute terms it increased 31% compared to last year amongst the highest in the industry. Ambuja, Kavach and ACC Gold. They remain our blockbuster premium cement products under the super premium segment and GST reduction only has helped in terms of shifting of the consumer preference towards the higher quality performance driven products.
Cost leadership remains a key strategic advantage. Although I’m sure you have seen that in this quarter my costs have gone up and you would be keen to know about the reasons but I can only give in more details when I come to the cost part. But we have delivered visible Y on Y reductions across the value chain. Gilon fuel cost declined by 6%, power cost reduced 15%, green power share increased by 15% to now 37% and logistics cost reduced to reduced by 1%. Our narrative on reaching 3,650 rupees per ton of cost by March 28 continues little bit on more on the cost so that while our December quarter comes at 4,500 rupees a ton as compared to our September quarter, It is almost 250 rupees hike in the right in the beginning I can highlight that these are like specific one time expenses because my exit of December is below 4,000 December month so that this 4,500 I would say is an aberration of one of these initiatives.
For example the brand transition, the B2B and the B2C segment. As you know that we have introduced and more larger amplification of Adani Cement brand. We have also done a substantial overhauling of the assets of Sanghi Penna which has seen a significant capacity improvement. I must also tell you that Sanghi is now operating in the December month exit is almost at for clinker 80% and for cement 65%. Penna is also showing a very healthy improvement in the capacity utilization. There were one or two plants which had some unfortunate equipment failures and one of them was Tandoor for the Penna and Jammu for acc.
But these are like under now going to be operational very soon. So these are like expenditures which have come in terms of the quarter but this will not be there for the March quarter. Therefore exit of December already as I said we are below 4000 rupees a ton. Coming back to my commentary, our renewable energy footprint now stands at almost 900 megawatt strengthening both sustainability and cost resilience. The real benefits of this 900 megawatt trends will come in coming quarters because many of this power as of now I’m selling in the market because it will require certain approvals in terms of consumption at my sites.
But that will happen very soon and therefore the benefit will significantly come in the coming quarters. But the good thing is these assets are operational and I’m able to sell this power in the market we expect to reach 1122 megawatt by FY27 providing this long term insulation in terms of the energy price volatility. This green power when I consume capituli as I said it will significantly improve my overall power cost per unit. As of now I can tell you it is almost closer to 6.1 rupees per unit. When I look at the competition they have a advantage over there, but that advantage will sooner come to Adani Cement once this is fully operational and we are able to consume it.
Digital intelligence continues to be central to our operating model. We have launched CNOC Cement Intelligence Network operating Center which is AI enabled central control system. Lots of applications, user interfaces, simplified apps and smart tabs have been given to our people and I strongly believe that this will be a game changer and will bring substantial efficiency and productivity. With power of analytics to the cement business, both IT and OT will have a significant improvement. Our ecosystem continues to deepen our execution advantage. We expanded engagement across the priority industry platforms. You are all aware of our engagement with credai Bai, Naretco Institute of Town Planning amongst many.
These are like first of its kind institutional partnerships which we have initiated in the last nine months and they are giving us significant results on ground programs and brand activations continue to build trust in our product quality and services. FutureX which now engages almost 750 institutions. Some of you would know that we launched this program on 15th of September which turned out to be the largest industry academia initiative almost now it encompasses 1.3 million students which will give us a significant advantage to bring the synergies of academia with the industry. Apart from getting the mind share and market share in terms of the concerted financial performance, VIT delivered a strong performance this quarter supported by higher volumes, improved realizations and discipline on the cost.
Although as I said the December month has been a significant improvement and which will percolate down to March quarter as well. We reported our highest ever quarterly sales volume at almost 18.9 million tonnes up 17% and the market share improved to 16.6%. By the way we have been giving a consistent double digit volume growth for the last nine months. So even if you look at my nine months volume growth it is in the range of almost 19%. On a normalized basis we achieved the highest quarterly revenue at 10,277 crores in the third series of the year Q3 up 20% supported by 5 rupees per bag improvement in realizations.
I think you will find some of the industry players have seen A decline in the prices Y and Y but our focus on market, our focus on premium cement, our focus on blended cement and you will see it more accelerated focus it is now giving us a delta improvement in the realization which in this case has improved by rupees 5 per bag y on Y pad for the quarter was 378 crores a jump of 258%. Again for the sake of clarification we have put an entire table on the one of exceptional items so that pat is apple to apple comparable unlike if you go with the reported numbers you will find a steep fall but that is incorrect because there are exceptional items sitting in terms of the income tax refunds and one time of the items or the excise duty drawback for himachal which I have clarified in my IR deck also in my reported numbers also in press release.
So that is for apple to apple comparison PAT is up to 58%. Operating EBITDA was 1353 crores of 53% and again I’ve given a clarification that the himachal excise drawback is a one off item. Last time also you all had suggested the same thing 635 watt crores. So when you remove that my EBITDA is up 53% y on y and the per metric turn EBITDA is closer to 718 rupees per ton up 31%. I have given you some explanation of earlier when in second quarter September when my EBITDA was almost 1020 rupees per ton. The delta of 250 rupees per ton ballpark for example is what I I told you in the in the element of cost which is slightly higher as compared to last quarter but as I said December exit is phenomenally below 4,000.
The EBITDA performance was supported by Y and y which is 2% cost improvement. Killer cost declined 6%. Of course I can tell you that the killer rate is better for me but the killer efficiency I’m still when I look at some benchmarks I’m still at 25 to 30 kilo calorie heat consumption higher which is an area which is clearly earmarked for us to run down. Power cost reduced by 15% on back of the green power share which is increased by almost 15% and my logistics cost and there’s a good scope for me to further reduce my logistics cost but as of now it is reduced by say 1%.
The diluted earning per share for the quarter is 82 paisa net worth is almost at 70,000 crores to be precise 69,854 crores and it increased by the 361 crores which is equal to closer to the pat which we have made for the quarter. Company remains debt free, crystal and care AAA stable and A1 ratings which are the highest in the country. From the operational excellence friends our operations have strengthened on back of disciplined execution, capacity expansion and network optimization and in terms of the low capex logistics initiatives which for example are on the track some of them for example.
So we have already ordered the vessels, almost seven of them which will be delivered to us by somewhere like mid of 27. We also are working right now in terms of the EV for which we already have given some orders. So you will see more of this. We also are putting the blenders at the plants. We are also debottle linking on the logistics. We are also putting a sharp increase in terms of the production of the premium cements. All of this for example will bring a substantial improvement in the the overall plant efficiency. By the way we have substantially run down the SKUs and which used to be multiple SKUs from a plant.
Almost 30 40% of that efficiency has also been brought in. On the digitalization I have covered it so I won’t repeat more but on the ESG and sustainability this quarter marked another step forward in standing our climate and sustainability leadership efficiency improvements from the modern assets and by the way more and more modern assets because this March quarter itself we will have almost around 8 million tons of cement which will be up and running and commissioned. So this efficient new assets will help to average out the overall efficiency factors. It will help me to bring down the lead distances.
As of now I see that my lead is relatively higher compared to the some of the peers. But that is obviously in terms of the location advantage what others have since they have number of gus. But in my case as we move with new assets it will come down. We accelerated our breakthrough on decarb decarbonization pathways while we have been the first in the universe in terms of the commercial scale installation of Cool Brooks RDH which is rotodynamic heater technology for the killer electrification. This will help me substantially to improve my afr. As you know that we are doing it in Burdepalli plant in Andhra.
Additionally, the Indo Swedish carbon capture unit pilot project in partnership with IIT Bombay and the government of Sweden is already in the process and we have become the first Indian cement company to adopt the TNFD framework bringing our nature related disclosures in line with the Global benchmark. So on the ESG friends, I can assure you that we are front runners and we will not leave any stone unturned to achieve the ESG desired parameters on people, community and capability building. Our organization is becoming younger as I told you last time. Also my plants are becoming younger, we are becoming more digital savvy and we are more focusing on smart execution across the communities.
We are expanding access to future ready skills through robotics, drone labs, rural KPOs, so and so forth I think so in terms of our community engagement it is on a very strong footing and therefore you will see more and like approvals coming on the at the various public hearings and all. Brand, customer and stakeholder engagement has been very strong. Our presence across the 29 high impact industry platforms enable us directly engage with more than 2038,000 key stakeholders including builders, developers, engineers, architects and policymakers which I mentioned to some of the great institutions like Credit, bi Narrative and so forth.
It is giving us a direct interface. Brand visibility remained widespread with outreach and activations touching over 300 million individuals across the cinema OTT digital so and so forth. I think our team is very forward in terms of using the digital media. In terms of the technical services which is the one of the key strengths of Adani Cement and I have a very sizable team on technical services. We have strengthened considerably what we call it as ACT Adani certified technology site which are like the houses which are built by our premium cement. This is growing every quarter and this quarter we had almost 36,000 ACT sites.
We have a network of 70 plus thousand contractors, influencers. We have almost like taken 400 workshops and so and so forth. So on the technical engagements also we are on a very strong footing now Friends, I’m on the last concluding for my opening speech in terms of industry I’m very positive. I’ve been positive for last four quarters. When I at the beginning of this financial year in the first quarter itself I told I see a demand growth of almost 8% and in between there were there were headwinds of the war and monsoon and seasonal dynamics and so on and so forth.
But you are seeing a strong revival coming back and therefore FY26 I strongly believe the industry will close at almost 8% growth of demand which resembles also like 1.1 times of the GDP of almost 7.5. So demand comes around 8% exit of exit of trend of December was robust and with demand strengthening from early December and carrying into January. Also I mentioned to you that even in January we have seen a good level of say price improvements and we are also seeing a similar trend expected in February. So the the overall revenue are going to improve.
It is expected almost As I said, 8% demand growth and almost 3 to 2 to 3% improvement. Another improvement in the quarter coming quarter which will be healthy finish for the year. Against this backdrop, our R and D bag customized cement solutions you will hear it very soon that we are also doing some specific R and D bagged customized cements and that is going to strengthen my value added products of cement and thereby the weighted average realizations. Institutional demand is very healthy but growing focus is on the blended cement and which will consume lots of say fly ice or slag.
So that is what for example will be a key driver for me. Currently my share of trade and non trade is almost 65 is trade and non trade is 35. Down the line it will be moving towards 70 30. By the way end of December exit of December we are seeing this trend of 67, 2033 and January already we are at 70 30. So that is for example what we are focusing more on the trade channels which is going to give healthy kind of realizations. Overall strategies are working very well on the market led leadership and the cost leadership is going to unfold in quarters to come as already started with December at almost below 4000 and I’m seeing the same trend which will follow through in the March quarter.
And needless to mention that all the benefits of AFR WHRS green power new cement capacities gives me lots of confidence that our journey to achieve 3,800 rupees per ton of cost by March 27, 3,650 by March 28. That conviction and confidence continues. Thank you. Although it was a little longer but I thought. I will go into more details. But now back to the moderator.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Naveen Sahadev from ICICI Securities. Please go ahead.
Navin Sahadeo
Yeah, good evening sir. Hello.
Deepak Balwani
Yeah.
Navin Sahadeo
Yeah, good evening sir. So two questions. One is on your volumes. So in the quarter you have reported about 17% growth. But if I were to just exclude orient from it which you have reported. I mean first of all congratulations for the transparent like you know, kind of entity by reporting which helps us really understand and even pose this question in the first place. So congratulations on that. My question was if I exclude orient from the total volumes then the volume growth comes to more like 6% and even I’m assuming Tenna would have ramped up.
My question was that if the realization decline as I see is much less than peers, so is it that in Q3 we were focusing more on premiumization or on pricing or value versus volume and which is why we saw a slightly lesser growth in other regions, if I may think it that way. And how should one look at then incrementally going ahead about volumes X of south from a market share and growth point of view?
Vinod Bahety
Okay, so you had two questions. So Naveen, you’re through with both the questions.
Navin Sahadeo
Sorry. My second question then was on the renewable energy. So 898 out of 1122 is already commissioned, which is nearly 80%. But in your opening comments you also said that you’re not able to utilize it fully pending approvals. You’re selling it in the market. So is it that this whatever you are selling in the market is how is that reported in the in the first place? And then what kind of savings by when can we expect and how much savings in the renewable space?
Vinod Bahety
Okay Naveen, so let’s come to the most important question is in terms of the volume growth I think 17% which includes all the entities Ambuja as a console. Right. Y on Y. So you’re right that in the previous year quarter Orient was not there. I can do the math and Orient, if I exclude that would come somewhere like 8%. And if I completely remove all the acquired assets and then if I go with the base capacities, Naveen that comes to in fact that is a tad better than the industry. It comes to closer to around.
Around 6%. Yeah. Now which would mean the base capacities of Ambujan acc. Right. Now if you, if you do a similar thing for other companies, you will find that those companies are at somewhere like 3 to 4%. I’m not naming anyone but generally like that is the trend but we are actually better than that. Second question. So second point, you’re right that in terms of the gear shift, of course now the strong brand of Ambujan Acc and now with the loaded power of Adani and therefore now it’s like Adani, Ambuja, Adani acc. Our whole larger drive is to regain the market share on the trade side.
So many companies will end up doing a larger share of volume because they will end up doing on the non trade side. And all our focus will be to regain the leadership position of Adani Cement on the trade side on back of the strong brand equity what we have. So therefore forward looking I can say 70 30. I mentioned in my opening remarks 6535 to now the exit of December 67 to 2033 and then in March already. Although in the month of January I’m seeing 7030 and gradually down the line 7525 for example. So that is like our wish list and our working to achieve.
So that will definitely help me to improve my realization. It will help me to penetrate more premiumization and therefore the NSP will be better than the industry peers. This is a clear mark strategy and which is played in the month of. In the quarter of December and more so you will see it actually being played in the month of January as well as coming quarters. Which also brings another point that the digital strength will help me more in direct engagement with the and simplified working with the dealers and therefore the retailers and therefore the end customer.
Therefore I’m very confident the whole logistics and the. The technology optimizers and the algorithms will help me on a speed of orders and also therefore the blended cement and the trade will be a higher growth percentage. Coming back to your question on the renewable energy as of now, renewable energy there are two factors. One is certain government approval. Second is also that my capacities when they. When they come up and running, I told you like 8 million of the grinding units. Then also the clinker in Bhattapara line 3, the clinker in Maratha which is expected in first quarter of the next year.
Clinkering facilities obviously consumes more power. So as. As things move forward and when my new capacities come fully operational they will be able to draw more power. Pending that therefore you can say that I am ahead in terms of power and therefore I’m. I am also able to sell those power in the market. And I have a combination of both green wind power and solar power. As of now this income of power it resides under the other operating income in the P and L. Yeah. So that is how it is. If, if I net it off in my power cost then it will be much lower.
But. But from an accounting perspective right now this third party sale is residing under the other operating income. Yeah. Thank you.
Navin Sahadeo
Thank you sir.
operator
Thank you. The next question is from the line of Ritesh from Investech. Please go.
Ritesh Shah
Yeah. Hi sir, a couple of questions. Sir. First is how are we looking at the JP assets which are now sitting at ael would it make logical sense for Ambuja to digest it based on what EL decides upon? That’s the first question sir.
Vinod Bahety
Yeah. You complete this and then I can in one one one time.
Ritesh Shah
Yes sir. Answer Second question is more on accounting. In ACC press release we we have written that plan maintenance from next fiscal will be amortized over 12 months. I just wanted to understand the rationale for it. And the other accounting related question was in the notes to accounts. Again we have indicated that with respect to coal sales as other operating income. Now basically we net it off under power and fuel. In the earlier quarters we have seen something similar for sales promotion expense. So just wanted to understand the thought process for the all three line items.
One was maintenance, second is cold sales and third is promotion expense. Thank you.
Vinod Bahety
Yeah Ritesh, thank you. Good observations. First Ritesh, on the JP assets last time also I think a similar question would have had come rather and I said that AL is a separately listed company and it would be better that this question is asked to them as of now I will keep it on an arm’s length basis and therefore I would say no comments right now from Adani Cement from Ambuja on this. Second is in terms of the accounting of the plant maintenance. This is like very important British because otherwise what happens is so far as of now the accounting has been done for example say December quarter the accounting results into distorted sometimes picture of a quarter because the.
The. The cost gets booked on an actual basis. When you. When the maintenance happens. What now we want to bring it which is more logically to all of you also that this amortization will happen over 12 months so that the quarters don’t get distorted with the scheduled plant maintenances. Right now the accounting policy has been to book it in the quarter when the maintenance activity actually happens. Yeah. So that is like a very proactive step so that all of you are able to then properly look at the quarter in a real sense. So far as your third question is in terms of the coal sales and the which is like whether it is netting of my other opex.
I will just like want some details from my cfo. Yeah, yeah.
Rohit Soni
So in ACC because of the MSA what we have between the one cement platform. So the cold sale which happens earlier we were netting it off on the expenditure. Given the discussions which we had with our auditors. We have shown it up gross at both the ends. So that is going under the revenue from operations instead of netting out from the power and fuel and the value of 315 crores for the period.
Vinod Bahety
Yeah.
Ritesh Shah
Sure. Sir, can I just squeeze in one more question?
Vinod Bahety
But again I think the moot point here is I just want to again check that there is no impact per se.
Rohit Soni
It’s only grossing.
Vinod Bahety
It is only the grossing up. No impact on the people P and L item. Right. No impact on the ebitda. Right. So yeah. So it is over to you again.
Ritesh Shah
Yep. As the last question was basically how should we understand the change in inventory on a sequential basis at Ambuja console level?
Vinod Bahety
Change in inventory like what is your question specific?
Ritesh Shah
It’s. It’s more from minus 30 to minus 84. The swing is quite substantial.
Vinod Bahety
Yeah. So. Okay Rohit, you want to address that.
Rohit Soni
So Ritesh, if I can answer here. I mean if you take in quarter two that’s where we have a big swing and that’s predominantly on account of the stock buildup which happens in the quarter. That’s the seasonality of the business which is a low quarter sale from that perspective. So you will have build up on the cement stocks. You also have a build up on the clinker stocks which gets pushed out in quarter three, quarter four and quarter one. But it gets smoother now. So we see in this current quarter we don’t have much of it reflecting it.
It’s predominantly on build up of the quarter two which we have. Otherwise it’s a seasonality which impacts. So there is nothing more to add out.
Ritesh Shah
Sure. Thank you so much for the answers. Thank you.
operator
Thank you. The next 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 in the September quarter you had mentioned that a majority consolidation of Orient and Sangi related costs were largely behind. In fact there was around 42 rupees per ton of maintenance related cost in September which should have subsided in this quarter. Now can you help us understand what exactly is driving OPEC’s higher Q on Q? Any quantification over here would be helpful. And my another question is by when can we expect clarity on the expansion you get was the 15 million ton debottleneaking breakdown but what about the rest on your roadmap to 155 million ton? Thank you.
Vinod Bahety
So what’s his name? Rahul. Hi. I think if you go Back to slide number 38. So while it captures broadly the overall phasing of the expansion plan. So FY26 exit is 115. Actually it is 117. But then I am also going to do mothballing of Two unviable and economically unviable units basically. So therefore I am seeing 115 on a net basis. And then on top of it the. The overall phasing of FY27 and 28 that will cover balance almost. So it will have a combination of both the new jus and the debottlenecking. Also ballpark around 130 to 32 will come by exit of March 27 and the balance will then come to me at exit of March 28th.
Rahul Gupta
No, thank you for that. What I was looking for was breakdown asset wise. When can we expect details around that?
Vinod Bahety
Breakdown of the capacity or breakdown. What breakdown? Capacity.
Rahul Gupta
Yes.
Vinod Bahety
Okay. That we can. So as things first let’s achieve the end of March so that we are happy at say 118 million turns. 117 sorry. And minus two of the. The mothballing. So 115 for example. Let’s achieve that then as things progress we will keep giving you further details because the blueprint is ready. But as things progress we also want to go progressively with with the quarters.
Rahul Gupta
Got it. Thank you. And my. The earlier question on opex. Thank you.
operator
Thank you.
Vinod Bahety
Sorry, what the earlier question was on cost of what? Of P and Sangi debottle Debottle necking. I think in the last previous analyst call also I told the debottlenecking comes below 50. So I was at say $48 per ton.
Rahul Gupta
No, no, that’s not what I was looking for. The last quarter you had mentioned that Sangeet and Orient were largely fully transitioned and.
Vinod Bahety
The O and M cost. No, no, I think the O and M cost for example Rahul, of course like that point of time Sangi and Penna are through. But now for you to have a substantially more capacity utilization there were some items which were left and then as I said that for Penna there were a couple of these plants like more so like Tandoor was down and in case of acc couple of old assets were down on certain equipment. So that is where for example the some of the scheduled maintenance which was supposed to happen in say January, February got preponed in December itself.
And that results into. And which is precisely my point when Ritesh asked that how you want to schedule is in terms of the. The overall maintenance cost. And I told that from coming financial year we will have a proper amortization of the O and M cost over the quarters in terms of spread over the months as part of the budget. So that there is no per se distortion of the. Of the cost on the actual basis. Yeah. Unless there Is any other breakdown otherwise it will be like scheduled over the four quarters.
Rahul Gupta
So let me, let me ask this question differently. So how much of your opex was one off during the quarter?
Vinod Bahety
No, so like a good level of, for example almost like in terms of my branding and my repairs, for example, almost 125 rupees is sort of like one off in terms of my higher freight because sometimes you then go with a larger lead and it is almost like 25 to 35 rupees higher per ton in terms of my some of the legal costs one time in terms of some of the legal cases which we have won by the way. But then this, this adds to the cost. So ballpark around say 150 or rupees is say one time and therefore like when I look at now my December exit, my December exit is clearly below 4,000 rupees while compared to which was almost like 4,500 rupees a ton for the quarter.
Yeah. So with every passing month, with every better utilization of green power, with every better utilization of the WHRS capacities and the alternate fuels, these costs are going to come down. So therefore in terms of giving you a estimate, I can only give you an estimate ballpark. But the actuals will be positively surprising to all of us.
Rahul Gupta
Got it. Thank you so much and wish you all the best.
operator
Thank you. Ladies and gentlemen. In order to ensure that the management is able to address questions from all participants in the conference, please limit your question to one per participant. The next question is from the line of Siddharth Mehrotra from Kotak Securities. Please go ahead.
Siddharth Mehrotra
Thank you for the opportunity, sir. So just to sort of elaborate on the previous participants questions, could you perhaps give us some breakdown in terms of direction for each of the cost line items? Say for example in terms of power and fuel costs, how much do you expect them to trend downwards upwards, Same for other costs, so on and so forth.
Vinod Bahety
Yeah, yeah, yeah, good, good point. I can give you ballpark I think in the initial commentary also I mentioned, let us say for example my overall say power consumption per ton of cement, which I find there’s a in scope for me to reduce by almost 10 to 12 units per turn. And in terms of rupees per unit, almost one and a half to two rupees which is like although an objective but one rupee immediately. So ballpark 100 to 125 rupees a ton. I see improvement possible quickly on the power while my end Target is by FY28 4.5 rupees per unit as compared to 6.1 rupees in terms of my power cost and my consumption almost which is from here I can improve by almost minimum 15 units.
But as of now I’m saying 10 units is quite possible in the coming quarters. And. And this 1 rupees reduction. So like let us say around 150 rupees. 100 to 125 rupees reduction on the power cost on the fuel. Almost like power and the fuel is almost 150 rupees reduction is what for example we would like to peg ourselves and back on the strength of. On. On the strength of the new assets which will come to us which will reduce my overall say fuel the. The heat consumption. And with every passing quarter my fuel cost is coming down.
And that you will see further trend. Look at the raw material like now fly ash and all with the group synergies we will be benefiting on the fly ash. We are putting up the BCFC rakes all across the major centers of consumption which will bring me benefits of logistics. On logistics part for example when I look at it, almost 150 rupees reduction is what we are targeting to. And on the, on the raw material, almost 100 rupees. So plus minus around say 300 to 350 rupees is what for example will come. And that should come to bring it down my cost to almost 3800 rupees.
Again as I think exit of 27th of March and 3650. But this is like for example as I said positively will surprise with every passing quote term. But the blueprint is very clearly laid down.
Siddharth Mehrotra
So these are basically longer term goals. Not exactly visible, say over one or two quarters. Right?
Vinod Bahety
No, they will, they will come down because as I said like the moment my line is ready for commissioning Mata Para for example line 3 is commissioned and it is ramping up. Maratha will come in Q1 this this quarter 8 million tons of cement will come. They will all be geared up to consume green power which is right now for example which we are selling in the market. So like it’s not like long mid to long term it will be possible to consume as they start ramp up on an immediate basis. Also number one, the moment they commission and get giving commercial production this 8 million and all the efficiency immediately improves because these are all efficient new kilns as compared to my almost the existing old assets.
So like this combination will give you quick returns on a quarterly basis. So every passing quarter will give you the improvements. Needless to say that as I mentioned the revenue pattern also will keep improving because all these new assets and all will be focused on premium and trade sales focus, blended cement focus. Many of my rakes BCFC RE are getting delivered so like typically once in almost three to four gets delivered a quarter. The moment they get delivered a quarter it straight away helps me to deploy for movement of flyers on railway logistics and therefore the blended cement portion will go up.
So I think don’t look it as as long term, look it as every passing quarter kind of action.
Siddharth Mehrotra
Got it. So just one question sir. What would be your guidance for Capex? See the next couple of years.
Vinod Bahety
So Capex Siddharth, as I have also highlighted in the in the investor deck around ballpark for the growth part say ballpark 8,000 odd crores and for the efficiencies and all another say 2000 odd crores. So I would peg it but this is like this is like a modular kind of say Capex because basis the various opportunities my foremost focus remains and continues on capacity utilization of my existing asset. So that is like straightaway helps me to bring substantial KPIs improvement. And therefore this Capex when I indicate to you it also will be a factor of how the existing assets also spans out in terms of utilization of the capacity and all.
But ballpark yeah. 10,000 odd crores you can consider over.
Siddharth Mehrotra
Two years, three years.
Vinod Bahety
No, no, this is like I’m saying yearly capital.
Siddharth Mehrotra
Okay, okay, thank you.
operator
Thank you. The next question is from the line of Amit Murarka from Access Capital. Please go ahead.
Amit Murarka
Hi, good evening and thanks for the opportunity. So just on your expansions while you have put out the numbers but specifically on the Clinker unit which is Maratha and the Rajasthan Clinker unit under Penna. By when is that expected to commission? Now.
Vinod Bahety
Oh good. So like Penna Amit. Thank you. Penna is expected in this quarter itself. Okay. Being targeted somewhere like third week of February but hopefully like mid of February. Yeah. So this quarter itself the commissioning will happen and so far as Maratha is concerned I mentioned earlier it is expected somewhere like in Q. Q1 to Q2 I would just keep a buffer of one quarter. So Q1 to Q that is a Q2 but so Bhattapara and, and Penna Marwad. Bhattapara is commissioned Penna Marwad in February then Maratha somewhere like in Q2 kind of scenario.
Amit Murarka
Sure. Understood. And beyond these then which are the other clinker units that you plan to. Take up in order to reach that 155 million ton of grinding.
Vinod Bahety
Again good question Amit. Thank you. See primarily for me the engines of growth in terms of clinkering Batapara remains my engine of growth so far as east is concerned. Sangi is my engine of growth so far as west is concerned. And in terms of, in terms of south we have Wadi and Chittapur basically. But primarily Sangi is where we will grow Mundra we are already expanding in terms of the calcium sludge based cement. Basically you are aware of that and Bhatabara which I mentioned. So and another important thing is for North Marwa Marwa remains my major for example mother unit in terms of the expansion.
So the clinkering line will be more primarily as a brownfield expansion and therefore the benefits of brownfield capex and therefore the economies of scale and all will come. That’s how for example our whole blueprint will emerge and all the GEOs are therefore and BCTS and all. A good thing is railways have also come out with the, with the bulk movement discount policies our tie with Concord. So in fact my capex actually will be a tad lower because now instead of guiding you can also very well plan BCT and the advantage of flyers which the group has.
So this will get. The model is getting now re emerging because of these various dynamics which are positive for the, for the. For the industry. Yeah but as I said Bhattapara then Marwa then Sangi are our, are our mother units for these three locations. And in south I have Chittapur and Wadi which are like primarily our growth engines in south.
Amit Murarka
Thanks a lot, that’s very helpful. And also on grinding, when will you be coming out with more details on the 24 million ton which you have mentioned for 27 and 28.
Vinod Bahety
I will go back to what I think Rahul had asked this question or Siddharth would have asked this question. Amit, I think give me time that with every passing quarter I’m going to keep you posted because as I said the industry is in a very interesting, very supportive of policies by government and therefore instead of saying you that grinding units I will rather put a blend of BCTs and grindings and container movements and so on and so forth. Therefore like the models are re emerging and therefore like I will keep updating you all in terms of the footprints with every passing product.
Amit Murarka
Thank you. Just the last question if I may. So you were earlier also contemplating giving. Out the operations on a contracting basis. So has there any been. Has there been any progress on that. Attempt that you’re making.
Vinod Bahety
I must appreciate Amit, you have been keeping so close track. Of course, yes. Whatever we are discussing with you on every investor calls we are moving our, our journey on that. So in terms of the outsourcing also I must compliment my team and the efforts which has been coming out that we are in a in a good momentum on that and you will hear positive things on that part as well.
Amit Murarka
Okay. That’s all from me. Thank you very much and best wishes.
Vinod Bahety
Thank you.
operator
Thank you. The next question is from the line of Rashi from Citibank. Please go ahead.
Raashi Chopra
Thank you. My first question is on cost. Sorry to you know, I know you had several questions on cost but just to understand this, you mentioned that in the second quarter the costs were 4,250 and that’s gone to about 4,500. And as of the close of the quarter you are at 4,000. Are these numbers correct?
Vinod Bahety
That is true, Rashi.
Raashi Chopra
Okay, so then. And you also mentioned that the one off expenses in the quarter were about 150 rupees or so. So from 4500 if I remove 150 I come to 4350. But that 350 is such a fast decline. Like how did that quick decline come from like the quarter to current?
Vinod Bahety
No. So so Rashi, like I gave you some quick headlines when it was asked like what are the items which are like one of and I explained but I explained in terms of broadly the branding, the O and M, the logistics cost for example which came in and some of these legal costs which additionally came in and also in terms of this Delta 250rupees which was there as compared to September quarter ballpark 250 resides in some of these items. But primarily the first two months have seen it’s more on the maintenance and all December was lean and clean and therefore December is almost like below 4,000.
And as I progress in March in January also it is actually below 4000. Therefore my confidence to circle back to you on March exit at below 4000 is very high. I can share further to you one details more if you require but that is this is like ballpark what I have been explaining right from my initial commentary to now. And as I said with every passing month the benefits of green power, the benefits and all of that for example I won’t repeat are actually coming in. So therefore like some, some of these items get staid off also.
Yeah. So these are like ballpark my answers to that.
Raashi Chopra
Okay. And on pricing you mentioned that in the south non trade prices are 15 to 20 rupees a bag. In the north 5 to 10 rupees a bag. Are there any incremental trade as well? It’s just only in a non trade segment.
Vinod Bahety
So there is an improvement on trade also. But the level of speed of growth is more on non trade and as compared to trade because the downfall also was much accelerated for non trade and therefore the corrective action happened. But of course even in the trade segment it has improved. And good thing is now again for south also for example our focus on the blended cement. And I’m happy to share that some of the first kind of initiatives in terms of Penna assets where the blended cements are now moving out from the factories just like two days back that started.
I’m also happy to share with you that in Bombay the blended cement in form of premium cement. Otherwise Bombay is more of an OPC market. But Bombay also for example we have launched our premium cement and as he has got a huge response positive. So yeah. So I think coming back to south has seen trade also improvement and south will see more of our blended share of cement improvement in an accelerated manner.
Raashi Chopra
Would you be able to quantify on average where your realizations today are versus the last quarter?
Vinod Bahety
Rashi? That would be too much of details but basically. But I can ballpark tell you that yes, things are improving, improving. I think all, all clusters, all zones. And good thing is like the. The brand equity is now pulling a good level of demand from the, from the customers. And the adani added advantage of brand actually is bringing lots of positive euphoria in the supply chain partners. So you will find the benefits coming in every passing quarter in terms of market relationship.
Raashi Chopra
Got it. And just one last question for me. Your balance sheet is suggesting there’s a slight decline in the cash quarter on quarter. Could you explain that?
Vinod Bahety
Oh like Rashi, when you operate, when you are looking at commissioning 8 million tons of cement obviously it will have a capex outgo all your clinkering of 8 million tons which will be coming right now from Penna to Batapara for example to the commissioning of Maratha. All of this is a plant scheduled capex and therefore primarily. But if you look at like obviously you know that from March to June and from June to September there has been this equation of Orient and all. So Orient if you keep it aside which was almost like outgo of 6000 odd crores.
But if you keep that aside, huge capex which is there in terms of the capacities which are getting added and the volumes growth will come in incoming quarters.
Raashi Chopra
Understood. So CapEx in nine months is how much total growth and efficiency.
Vinod Bahety
So in terms of capex for the nine months it is ballpark around 6,000 odd crores. And I would put the run rate and therefore I’d given initially that almost 10,000 is what we are expecting between growth and efficiency. And for the next three months also for example another 3000 odd crores. So this will be ballpark 9000 odd crores for this year and the same plus minus a 10% run rate we will follow passing quarter, passing years also.
Raashi Chopra
Got it. Thank you.
operator
Thank you. The next question is from the line of Jyoti Gupta from Nirmal Equity. Please go ahead.
Jyoti Gupta
Good evening sir. Thank you for the opportunities. My question is on your slide number 10 where you said that the cost reduction would be 4,000 per metric ton. March 26 exit nine months we are averaging around 4,000, roughly 4,300. So do you. Can I assume that last year fourth quarter I did 900 odd EBITDA per ton and with the improved conditions in the first two months of this quarter, can I see that improvement reflecting so maybe 900 plus 300 or maybe anywhere close to it could be the EBITDA per term for full fourth quarter. And can we end the full year with something like a thousand plus beta per ton?
Vinod Bahety
So Jyoti, I can give you commentary on cost so far as EBITDA has two elements. Therefore like of course I have hinted that and informed basically that January price momentum is very positive. And therefore you will see that upside in terms of price also. And of course on the cost which I mentioned, that exit of March it will be below 4,000. So you will definitely you can expect improvement overall. But what would be four digits or three digit? I would not give a forward looking EBITDA.
Jyoti Gupta
But are we sure we’ll be around 4,000? Will we average 4,000 full year?
Vinod Bahety
I’m giving exit of March, Jyoti.
Jyoti Gupta
Yeah. So that’s a full full year.
Vinod Bahety
For the month.
Jyoti Gupta
26. And we are already nine months average of roughly around 4, 300. So that 300 rupee per ton improvement should reflect in the fourth quarter alone. Which means overall.
Vinod Bahety
It will be definitely. But just like put the numbers properly when I say March exit, in this case I’m meaning of March month exit. Yeah. So therefore like like you do your math on that basis and like in terms of price and ebitda, the cost definitely the performance improvement will come on ebitda.
Jyoti Gupta
Thank you so much.
operator
Thank you. Next question. Is from the line of Jashindeep Singh Chaddha from Nomura. Please go ahead.
Jashandeep Singh Chadha
Hello. Am I audible?
Vinod Bahety
Yeah. Jasindeep.
Jashandeep Singh Chadha
Yeah. Hi. Hi sir. Thank you for the opportunity. So my first question is regarding the acquired estate. It feels like, you know, for a year. So these acquired assets have been a drag on the performance of Ambuja console. In your presentation also you mentioned that from the organic asset you delivered 1045 rupees per ton EBITDA. I just wanted to understand from the management point of view, from the strategy point of view by FY27N, what are the utilizations that you’re targeting from these assets? What is the internal EBITDA per ton targets and what will be the key levers in generating those numbers.
I just wanted to get a sense of, you know, how you’re planning to. Ramp up the the acquired assets.
Vinod Bahety
Now that we have acquired and we have integrated. So therefore I would say that it’s now under Adani Cement. All these assets, including my existing assets, the target Is to hit 80% utilization and the target is to hit EBITDA which is almost closer to 1250 to 1300 rupees a turn and then gradually move towards 1500 rupees per ton. So the acquired assets are doing very well. I told you Sanghi which is now a good turnaround and we are hitting almost 80% on clinker for December month. And I told you 65% on cement and which will move up further some debottlenecking which I have to do it in Sangi so that I get almost as of now say 25 of the clinker which is like 20,000 tons per day.
I have to do a small capex part which is already in the process. So by, by June or July I should have 25 returns utilization. As of now I am handicapped to 17,500 tons per day kind of utilization. So that will happen. Yeah. So when you acquire a set like this and most of the asset which are, which are financially challenged when they were acquired and when the erstwhile company promoters could not do overhauling and all, it takes time because these are like strategically important assets. You get thousand million tons, you have a huge play.
You have a mother plant now which will set up more clinkering units over there. Therefore I would give enough opportunity for the asset. And by the way, I’m planning for a site visit also for all of you in the month of February. Team will come back to you shortly on this so that seeing is believing and therefore like you will Get a larger comfort of the turnaround of Sanghi that was a, on the, on the aqua asset. So like for me now acquired and existing, it gets all as a Adani Cement platform, one cement platform.
And now I would be confidently discussing with you in terms of the capacity in line with the Adani norms and Adani standards for all of these assets.
Jashandeep Singh Chadha
Understood, sir, and thank you for this. So my next question is, you know, more from a strategy point of view, from an industry point of view. You know, Dani Cement is one of the largest players we have just wanted to understand your view on, you know, consolidation. Do you, do you think, I mean you have already told us that organic capacity expansion you will be discussing in a later call. But do you think that if the consolidation phase over or you know, there’s more scope and I mean just a structural, you know, view, if you can give us, you know, how are you looking at the industry right now?
Vinod Bahety
Some consolidation phase, of course like Teal one to one and a half years back has seen a good run up on that and now taken a pause because the companies which have deeper pockets when they have acquired and therefore they are just taking a pause to basically ramp up the existing assets and that trend will continue. And therefore the focus on ramping up the acquired assets and then capacity realization of the assets remains a focus area. But as things turn around, obviously then companies become more bullish and this is like a cycle which will continue.
So it takes a pause. It again comes back to the circle and there are companies which will be available for consolidation right from small size to mid sized companies. But the pace will be not that what we have seen one and a half years back. The pace will be little lesser, the size and scales will be relatively lesser and but I would say that yes, there will still be opportunities and I’m sure those opportunities I would always seeing that we are always open to at the right price and right value. So therefore no one, for example, because I have a very strong balance sheet, 70,000 crores of net worth and zero debt as of now.
So therefore like opportunities will come at the right price. We will be very open to that. But the current deeper focus is right now on the ramp up of the existing facilities and the organic growth which is already we have put a blueprint to work on.
Jashandeep Singh Chadha
Understood, sir, thank you so much for this.
operator
Thank you.
Vinod Bahety
Thank you.
operator
Participants, you are requested to limit your questions to one per participant. The next question is from the line of Pratik Kumar from Jefferies. Please go ahead.
Prateek Kumar
Yeah, good evening sir. Please allow A couple of questions. Can you tell how the EBITDA per ton would look in different regions in 3Q or particularly maybe which region underperformed versus your 715 per ton blended average. Due to specific plant performances?
Vinod Bahety
No, Generally it’s like you all know the answer. It’s like south will generally be modest compared to the other markets. West for example is generally better and in this case markets like Bombay are always far, far better. In terms of east was also subdued, although it picked up in the last month of the December, center has been completely subdued. So the pricing was very, the aggression of competition was very high in center north you will generally find the north and west clusters are generally generally mitigated from this kind of say immense pressure on competition. But center and east and south remains vulnerable and south generally is vulnerable and east and center can surprise on either side.
That’s how it spans out.
Prateek Kumar
Sure. One of the questions and this was. Like related was asked earlier. So you had like 4,500 rupees per. Ton average for this quarter, exited at. 4,000 rupees simplistically for modeling purpose. Next quarter you will have like a. Swing of 500 rupees per ton on cost and likely will flow completely to EBITDA per ton. So you can like report 1200 rupees. Plus rising increase that the expectation for next quarter.
Vinod Bahety
I would be very happy to give you some forward looking statements on this Pratik, but I would resist on that because I can give you with comfort that what I can target on cost. But on the EBITDA I think this question came with Rashmi or Rashi also Rashi or with Jyoti. I think so. I would register on any commentary on the ebitda, but you can do your. I think you are smart enough.
Prateek Kumar
Right? Sure. Thank you.
operator
Thank you. The next question is from the line of Ashish Jain from Macquarie Capital India. Please go ahead.
Ashish Jain
My first question is on power consumption. Like you know the point you made earlier that power consumption can come down by 10 units and one of the drivers you listed was commissioning of the new clinker plants. But you know, like our understanding under the spell management was that one of the reasons power consumption here was the limestone and the the aging of the plant. So are you saying that the 11 million ton will really help you to bring down portfolio level consumption by 10 units or are we also working on efficiencies of the existing clinical plants as well?
Vinod Bahety
Both, both. Ashish, I mentioned to you in terms of the stability, reliability and therefore the utilization factor of the existing plant and that will be a key for every kind of KPIs and on top of it the blend of the new asset. So it will be benefit of both coming together on an overall basis the reduction of 10 units and this is.
Ashish Jain
High visibility using based upon whatever technical.
Vinod Bahety
Assessment I’m already seeing that visibility as I said with capacity utilization improving for the acquired asset assets with the efficiency capex is done for the existing assets and you’re right, some of the assets which are old from ACC and all and therefore when you debottle neck you will actually be able to get a higher volume of cement from the same assets and straight away your efficiency improves. So there’s a high degree of visibility on that and that’s how I think we have done our maths on that and then come out with this weighted average reduction of minimum 10 units.
Ashish Jain
Right, right. So secondly, you know, again I understand that you know jpss are with AEL and you don’t want to comment on it, but in case let’s say those assets come to us then will it be like incremental above 155 or you will have flexibility in the existing potential pipeline and you will still stick to 155 by FY28.
Vinod Bahety
No, I think my larger point is 155 has element of both organic and inorganic so that continues although I’m not commenting anything on al transaction but whether it is JP or whether it is XYZ155 will subsume as overall both organic and inorganic.
Ashish Jain
Okay sir, thank you so much, that was very helpful.
Vinod Bahety
Thank you.
operator
Thank you. The next question is from the line of Pinak from hsbc. Please go ahead.
Pinakin Parekh
Yeah, thank you very much sir. I have two questions. My first question is again going back to the costs which were very disappointing this quarter. So over the last two years the costs have been volatile and going forward while you maintain the guidance of costs coming down, there will also be a lot many new capacities which will ramp up which will have lower utilizations to start with. So shouldn’t that cost also be a drag? So you know, I’m just trying to understand the cost picture. Will the overall cost for the company come down or will the new plants cost be higher in the ramp up phase and the existing plants cost will come down?
Vinod Bahety
No good. I think. Good. Pinakin first your question is in terms of volatility. I think I wanted to address that part when I said that the accounting of this O and M cost which should actually ideally get amortized logically over say 12 months so that volatility comes down point number one. Point number two, the new capacity. Right? Ramp up. So in terms of gu, the ramp up happens very fast. Unlike in clinkering, the rapam ramp up has happened in a phase manner. The ramp up doesn’t really increase the cost because they already are sitting at a efficiencies.
So ramp up will not increase, but it incrementally will improve the cost and any cost which is required at the time of commissioning anyways that gets capitalized. So these three answers for example will help you to. So volatility answer is right. In cement, if you do it on an actual basis it becomes volatile and therefore like I will take those corrective steps in terms of equalizing in terms of the quarter so that it is not on an actual basis but it is properly amortized. Number two, in terms of capacity I mentioned to you, and therefore the new capacities don’t tend to increase the costs.
Pinakin Parekh
Sure. My second question is on the capacity number 155 million tons. So the pipeline of 24 million tonnes, which includes both organic and inorganic, while there will be an inorganic element which you cannot detail right now, but given that you have given a target for capacity as of two years down the line, when can we expect the organic capacity roadmap to be detailed out? Because it’s just trying to wonder that the capacities are not detailed then how confident we are of that March 28 number.
Vinod Bahety
No, I told I think in terms of the end target for FY27 we are at around 135 million tons and then it moves to 155. Right. So I think end target for the year is there now in terms of. The question was specific Gus and all that. I said that we will come back with every quarter so that whether it is gu, whether it is bulk cement terminal, whether it is container terminal. I think lots of options have now come out and we have these synergies and advantage of the power plants and of course on arms and all.
But we have the advantages wherever for example, we can very easily now put up some of the BCTs and all. So this whole model requires detailed review to bring more efficiency on the capex and still get the benefit of the capacity. I think that is what we are going to come back and circle back to you. But the larger numbers very much remain intact. Second, as I said, that focus will be to sweat the existing assets much better, smarter and efficient and therefore at any stage when we are able to meet the same demand and market share with sweating of the existing assets I think 5, 10% here and there cannot be basically ruled out because that is where for example the whole opportunity will be to bring more efficiency in the existing assets.
So 155, 135, 115, 115. These are like three ladders to the next say three fiscal years and plus minus 5, 10% when you are able to achieve your capacity utilization that whole like part of the whole strategy.
Pinakin Parekh
Got it, Got it. Thank you very much sir.
operator
Thank you. The next question is from the line of Ashish Jain from Macquarie Capital India. Please go ahead.
Ashish Jain
Hi sir, thanks for the follow up.
Vinod Bahety
We are at say 620 so I would say like maybe last one or two questions. Yeah, yeah Ashish, sure.
Ashish Jain
Yeah, thanks for the follow up opportunity. Sir, I just had one bookkeeping question. So earlier on the call did we comment that 315 crore of coal sales is booked differently this time which is both in revenues and cost which was earlier being knitted off in the power cost. And is that the reason why our realizations are flagged sequentially and the cost is also significantly higher? Is that one of the reasons?
Vinod Bahety
Royce will answer you on this.
Rohit Soni
So that’s not the reason. It’s just a gross up and gross down from accounting perspective. So all the numbers what we report, they don’t consider that we reported from the management this thing that is just a gross up, gross down. Nothing to do with any of the numbers what we.
Vinod Bahety
But affirmation that NSP is not influenced on that. No, affirmation number two that EBITDA is not influenced on that. These are two points now Rohit, if you want to still clarify.
Ashish Jain
Yeah, if I can sir. Sorry, if I can. But is, is that accounting change effective this quarter on coal booking? If you can just clarify that.
Rohit Soni
Yes, it is there in last quarter also the value was less, might be in this quarter. It’s a value bit larger. That’s the only thing it has been there in the past. Also.
Ashish Jain
Can you give the value for the previous quarter please if possible.
Rohit Soni
I have. For the current quarter. For the past quarter. I’ll pull it up and I’ll ask Deepak to share it with you.
Ashish Jain
Sure.
Vinod Bahety
31515. So for the quarter, 315 and previous quarter while you. While the next question comes, if you are able to dig out then we will tell you otherwise Deepak can separately inform.
Rohit Soni
Yeah, and I’ll again clarify. Ashi, this is only at ACC level. Otherwise at console level everything is eliminated. Because all these things are within the one cement platform. What Mr. Bahati Ji was trying to explain at console level 000.
Vinod Bahety
So again I think this is like coming as a question. Again my point is Rohit and we can just confirm again two things. EBITDA is not influenced. Price is not influenced. Right. And it’s purely, purely accounting and it nullifies and absolutely at the console level. So friends, this is like very, very clear. So that. And then any specific further details circle back with Deepak. Great sir.
Ashish Jain
Thank you so much.
Vinod Bahety
Thank you.
operator
Thank you. The next question is from the line of Rajesh Ravi from HDFC Securities. Please go ahead.
Rajesh Ravi
Hi sir. Good evening and congrats on very detailed presentation and the discussion. My few questions you have talked about the three clinker units which will get commissioned over you know next three to four, four months for FY27. Are there specific targets beyond these three clinker which would get commissioned and also could you share demand outlook for Q4 overall how is the industry growing? And my third question, what we have seen and I remember a few call quarters back you had alluded to this that there’s a lot of value unlocking you’re doing in ACC and Bujar which is below the beta, the tax, you know refunds which you’re securing or getting it cleared for prior periods.
So some discussions around that please.
Vinod Bahety
Your first question is in terms of the new killings beyond. So there are four of them right now in. In the discussions. One is. So of course your three one which you said and the fourth one which I mentioned was the Mundra. Right. So this together for example right now 16 million tons. Because each of them will say 4 million so 4 into 416 million into ballpark 1.5. So you have 24 million tons. Gu. Right now I am sitting at say 11109 so 109 plus 24. We are at say 133, 135 which I mentioned. Yeah.
So this is how for example this. No the 8 is included in that Jio. So basically these 4 kilons are very much there in terms of process. And then I mentioned that Bhattapara Sanghi and Mara Mundua are our centers of growth from clinkering perspective. And sooner that you will find our additional announcements and narratives coming on the CAPEX program for the by the way Assam also we have, we have signed up. We have entered into agreement with the government in terms of setting up another one line of 4 million Assam which is the fifth one by the way.
So which is like brings things to you. 20 million tons of income. Yeah. So Assam Mundra Are let us say Mundra is still a brownfield because we have a great ecosystem system there. Assam is Greenfield and. And Maratha is brownfield and Penn anyways is in a fairly advanced which will be up and running in February.
Rajesh Ravi
Great, great. And on the demand outlook and value value unlocking through tax refunds for prior period.
Vinod Bahety
Tax refunds of the prior period. I think we have done a major efforts on that and unlocked the working capital. I think we have also if I give you a ballpark, we have resolved a substantial of the legal cases also. So we are extending our balance sheet from that perspective. I hope you are not asking me about the past year refunds and all. I’m. I’m more like forward looking which you are. I think your question is more about the forward looking.
Rajesh Ravi
No, no no. The tax refunds which you have secured for both ACC and Abuja in the past few quarters quite sizable relating to prior periods. So are there more which is available to be realized on that?
Vinod Bahety
So in the future not to that this magnitude I think there will be but this magnitude may not come I think but few points on the GST and few points on some of the specific taxes and all from couple of states and then some incentives which has to come in form of long pending. So I think those are the ones which will be adding up to the overall cash flows. But on the income tax I think we have sizably resolved majority of the cases.
Rajesh Ravi
Okay. And on the demands of Q4, what is the industry outlook you’re looking at Q4? How is January and you know what is the outlook for next two months in your assessment?
Vinod Bahety
I remain bullish on demand for the cement industry and industry as a whole. I would say that Q4 should also see around 8 kind of percentage and therefore the leading players will find double digit growth again in the quarter of March.
Rajesh Ravi
Great. Just last question on the capacity which you mentioned Assam, when do you target this line to be operational?
Vinod Bahety
Which line?
Rajesh Ravi
Assam capacity which you are planning. You mentioned that.
Vinod Bahety
Yeah, I would say that since Assam is Assam and therefore like it it. It could take around. I would say ballpark say 24 odd months. 18 to 24 months is what for example we should be looking at.
Rajesh Ravi
Okay, so somewhere closer to FY28 exit we would be looking at this.
Vinod Bahety
Yeah, I think the work on the ground has already started, land has been secured and the incentive program and all for example is well moving very well. So Assam will see a good level of work at the site.
Rajesh Ravi
Sir, you talked about two capacities getting mouth bold 2 million ton or could you elaborate if it is already done and at which location.
Vinod Bahety
They are like very old assets. One of them is in say Sindri. And second is basically at Jammu. So on slide number 38 of the IR deck. See again I’m sure like you would appreciate our IR decks are very transparent and right very full of information. So on 38 page number you will see the mothballing of these two capacities. Jammu and Sindari. Very old mills.
Rajesh Ravi
So these are already done right. In the current capacities.
Vinod Bahety
They. They have already with their non operational practically. And therefore like I am con. I’m not. Therefore I’m removing them from my operative capacity. Okay?
Rajesh Ravi
Okay.
Vinod Bahety
I can still use it on opportunistic basis. But as of now I they are economic cell, economically unviable. Therefore I’ve kept them non operative.
Rajesh Ravi
Understood? That’s all from my end. Thank you. All the best.
operator
Thank you. We’ll take the last question from Kunal Shah from Dam Capital. Please go ahead.
Kunal Shah
Yeah. Hi sir. Firstly on Sanghi. Now it continues to operate around 50% odd sub 50 on an average level in terms of grinding. Now this is despite this asset being acquired for more than two years remains and this ramp up remains much lower versus our initial guidance. And the geography is Gujarat where we already have a very strong presence. So what is going wrong here structurally? Or what was the negative surprise here that we realized post the acquisition, if any.
Vinod Bahety
Good, good, good observation Again nothing per se wrong. I think we have to understand the topography of Sangi. It’s like a classic island plant. And you’ve seen some of the hard seasons. So last year for example you have seen flooding and all and huge storms. Some of the plants were affected and Sangi was also some equipments were damaged. Second is in terms of some improvements. For example, the transmission line was a little low voltage transmission line and which is if you would just track it. Therefore already now the transmission line from government is getting revamped and strengthened to to take a higher load factor which will straightaway help me to to bring at least 2025 megawatt of green power in Sangi.
Therefore it will benefit me in a sustained power and at a reduced cost sometimes. Otherwise when this kind of say storms and winds and bad seasons. The power tripping happens very often. So nothing wrong with the asset per se. Except some of the debottleneaking and investment which you had to do. Including some dredging activity which had to be done which has been done now. So like now I think with 80% in December exit when I Say December exit is December month. 80% of clinker being capacity being used and almost 65 for cement. I think from here things are now only improving.
Earlier you would see that the colony was also the plant life was very badly managed. But it takes time for us to also revamp the whole quality of life over there. The infrastructure, the facilities. And therefore I’m very eager to take you all now to Sanghi. And therefore like the right contractors, the right talent will also now move in earlier becomes a very. So those were the issues. But we know that when you acquire a set of this scale and which gives you sizable potential and which has thousand million tons opportunity so that you can set up multiple lines.
I think it’s a game of doing it, setting it right and gradually so that it performs overall in due course.
Kunal Shah
Understood. This is helpful. And one last one. You know if you look at the current status we have underutilized acquired assets, a capacity expansion target of maybe 15 to 20% over the next two years. This in the backdrop of industry demand at roughly 8% odd, right? So how are we thinking on volume growth targets over the next two to three years? Or is there like any guidance that you can give on volume growth or capacity utilization or market share that would be helpful.
Vinod Bahety
See, volume will be growing double digit. I mean like while my base will keep increasing. But double digit is what we are expecting. But it is very important for me to highlight that we are balancing it between volume and value and therefore you will see more accelerated improvement on my realization on my blended cement, on my premium cement. And therefore even at the risk of losing some low EBITDA volume, which we will do but we will play a balance game of volume and value.
Kunal Shah
Understood. And one last book keeping. Can you just give Penna’s utilization levels both on clinker and grinding if possible.
Vinod Bahety
Penna ballpark is for the month of December is ballpark 52 to 55%. And as I mentioned like this asset of Tandoor of Penna was down but now it is going to be up and coming running in the next week or 10 days and therefore like you will see a good level of utilization sharp improvement in Penna assets. So some of the assets we have done a substantial overhauling that also for example results into where whenever I do an overhauling it sharply improves my O and M cost and which gets booked when the actual cost is incurred.
Penna is a classic case on that. So lots of this work has gone to bring these assets back to their desired asset reliability factor and therefore like and I mentioned to you that Penn Assets now will start sending blended cement also. And therefore it will help me to improve substantially the capacity utilization. The Krishna Patnam grinding unit of Penna, for example, which was there will which now say 2 million becoming 4 million. And once I start substantially using this 4 million. Because right now the ramp up of the additional 2 million has not happened. But the moment that happens is 55% will see a sharp jump in terms of capacity utilization.
Kunal Shah
Understood? Understood, sir. This is very helpful. Thanks and all the best. And thank you for extending the call as well. Thank you.
Vinod Bahety
Thank you very much. We are almost at 1 hour 45 minutes. So I’m sure now Ikra will take a judicious call.
operator
Yes, sir. Ladies and gentlemen, due to time constraint. That was the last question. I now hand the conference over to Mr. Deepak Balwani, Head Investor Relations at Ambuja Cements Limited for closing comments.
Deepak Balwani
Thank you. I trust most questions have been addressed. You have my contact number. Please feel to call me. Thank you.
operator
On behalf of Antique Stockbroking. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.