Ambuja sees softer demand in FY2027

Ambuja Cements Ltd, part of Adani Group, said outlook for FY2027 remains soft due to current geopolitical challenges and early forecast of below normal monsoon.

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The company expects industry demand at 5 per cent for FY 2027

Ambuja said the West Asia conflict has resulted in cost pressures.

Cost pressures from fuel, diesel, packaging bag supply constraints, and rupee depreciation impacted the fourth quarter and impact expected to continue in first half of FY 2027, it said.

The company said it is actively strengthening cost-mitigation measures through fuel mix optimisation, higher renewable energy usage, reducing logistics costs via rail and sea, and disciplined production and inventory management.

Ambuja posted its highest ever quarterly revenue of Rs 10,915 crore in the fourth quarter, up 9 per cent in the comparable period last year.

The company’s normalized net profit declined to Rs 569 crore in the fourth quarter from Rs 856 crore in the same period last year.

“FY 26 has been year of resilience for the Cement sector which has witnessed consolidation, GST 2.0 reforms on one side, while adverse weather conditions, global geo-political factors and state elections affected some or the other way,” Vinod Bahety, Whole Time Director and CEO, Ambuja Cements, said in a statement.

Against this backdrop, Ambuja Cements delivered a resilient performance for the year with highest ever annual volume of 73.7 million tonnes, revenue of Rs 40,656 crore, EBITDA at Rs 6,539 crore and normalised net profit of Rs 2,647 crore. For Q4 FY 26, we have sustained the performance at volume of 19.9 million tonnes, revenue of Rs 10,915 crore & EBITDA at Rs 1,464 crore, he added.

Also Read: https://industrialeconomist.com/acc-expects-cost-pressures-to-continue-in-h1-fy27/

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