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Ambuja Cements Share Price in Focus After Q4 Results Declaration

Written by: Aayushi ChaubeyUpdated on: Apr 30, 2025, 10:45 AM IST
Ambuja Cements share price is in focus after Q4 profit declaration. While sales and capacity hit new highs, profits have declined.
Ambuja Cements Share Price in Focus After Q4 Results Declaration
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Ambuja Cements share price was up 1.43% at ₹541.60 at 10:27 AM on Wednesday. The renowned cement arm of the Adani Group has reported a 9% drop in net profit for the Q4 of FY25.

The profit attributable to owners was ₹956.3 crore, down from ₹1,050.6 crore in the same quarter last year. This drop was mainly due to higher tax expenses, although the profit still beat market estimates of ₹735 crore.

The consolidated net profit, which includes all subsidiaries, fell 16% year-on-year to ₹1,282 crore.

Revenue and Operational Performance

Revenue from operations during the March quarter rose 11.6% to ₹9,802.5 crore, slightly below Bloomberg’s estimate of ₹9,903 crore. Despite this, the company reported its highest-ever quarterly sales volume of 18.7 million tonnes, a 12.65% increase from the previous year.

Ambuja’s EBITDA (earnings before interest, tax, depreciation, and amortisation) rose 12% to ₹1,781.4 crore. However, EBITDA per tonne dropped by 2% to ₹1,001. The EBITDA margin stood at a healthy 18.2%.

Capacity Expansion and Future Plans

The company has been expanding aggressively. With the recent acquisition of Orient Cement, its installed cement capacity has now crossed 100 million tonnes per annum (mtpa) as of April 29. Ambuja plans to increase this to 118 mtpa by FY26, and eventually reach 140 mtpa by FY28.

To support this growth, Ambuja Cements plans to invest:

  • ₹6,000 crore in expansion (capex) in FY26
  • ₹2,500–3,000 crore in efficiency improvements

Cement consumption in Q4FY25 grew 6.5–7%, supported by rising construction, strong rural demand, and government spending. For FY25, overall cement consumption grew 4–5%. In FY26, Ambuja expects demand to rise 7–8% due to continued infrastructure focus.

The company also announced a ₹2 per share dividend, in line with last year.

Conclusion

Ambuja Cements is undergoing profit pressure from taxes but showing strong growth in sales and expansion. With major capex plans and steady demand, the company remains focused on long-term growth.

Read more on: Vishal Mega Mart Share Price Gains Over 7% After Q4 FY25 Results; Net Profit Jumps 88% YoY

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Published on: Apr 30, 2025, 10:45 AM IST

Aayushi Chaubey

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