Ambuja Cements Limited Q4 FY2026 Results
📊
Overview
📋
Detailed Analysis
Sentiment
Mixed
Executive Summary
Ambuja Cements Q4 FY2026: Revenue ₹10,892 Cr (vs ₹9,894 Cr YoY), PAT ₹1,857 Cr (vs ₹1,351 Cr YoY)
In Q4 FY2026 Ambuja Cements reported consolidated Revenue from operations of ₹10,891.68 Cr and Total Income of ₹11,149.36 Cr. Consolidated Profit after tax was ₹1,857.43 Cr for the quarter, supported by a one-time deferred tax credit in the year and lower tax charge adjustments. The quarter included Exceptional Items - Expense of ₹102.51 Cr related to stamp duty, labour-code impact and other items. Management approved amalgamations and corporate reorganisations during the year which materially changed comparatives and balance sheet composition.Revenue from operations (Q4 FY2026)
₹10,891.68 Crvs ₹9,894.41 Cr in Q4 FY2025
Total Income (Q4 FY2026)
₹11,149.36 Crvs ₹10,553.81 Cr in Q4 FY2025
Profit after tax - Consolidated (Q4 FY2026)
₹1,857.43 Crvs ₹1,351.46 Cr in Q4 FY2025
Profit before tax - Consolidated (Q4 FY2026)
₹528.13 Crvs ₹1,872.06 Cr in Q4 FY2025
Exceptional Items - Expense/(Income) (Q4 FY2026)
₹102.51 Crvs
Basic EPS (Q4 FY2026)
₹7.41 per sharevs ₹4.16 per share in Q4 FY2025
Segment - Cement Results (Q4 FY2026)
₹545.27 Cr profitvs ₹1,202.18 Cr in Q4 FY2025
Key Highlights
9
Consolidated Revenue from operations rose to ₹10,891.68 Cr in Q4 FY2026 reflecting expanded scale including newly acquired businesses
Consolidated Profit after tax increased to ₹1,857.43 Cr in Q4 FY2026 driven largely by tax reversals / deferred tax credits recognised during the year
Profit before tax fell to ₹528.13 Cr in Q4 FY2026 because tax credits and adjustments reversed prior provisions, making PBT lower sequentially versus the prior-year quarter's pre-tax base
Exceptional Items of ₹102.51 Cr in Q4 FY2026 include stamp duty on amalgamations and labour-code impact, reversing a prior-year exceptional income of (₹134.73) Cr
Cement segment profit compressed to ₹545.27 Cr in Q4 FY2026 from ₹1,202.18 Cr in Q4 FY2025 indicating margin pressure at core operations despite consolidated PAT improvement
Group reported Other income of ₹233.89 Cr in Q4 FY2026 which includes interest and tax-related items that supported net profitability
+3 more in Detailed Analysis →
Key Highlights
9
Consolidated Revenue from operations rose to ₹10,891.68 Cr in Q4 FY2026 reflecting expanded scale including newly acquired businesses
Consolidated Profit after tax increased to ₹1,857.43 Cr in Q4 FY2026 driven largely by tax reversals / deferred tax credits recognised during the year
Profit before tax fell to ₹528.13 Cr in Q4 FY2026 because tax credits and adjustments reversed prior provisions, making PBT lower sequentially versus the prior-year quarter's pre-tax base
Exceptional Items of ₹102.51 Cr in Q4 FY2026 include stamp duty on amalgamations and labour-code impact, reversing a prior-year exceptional income of (₹134.73) Cr
Cement segment profit compressed to ₹545.27 Cr in Q4 FY2026 from ₹1,202.18 Cr in Q4 FY2025 indicating margin pressure at core operations despite consolidated PAT improvement
The quarter reflects accounting effects of multiple inorganic actions (Orient, Penna, Sanghi/PCIL amalgamations) that changed comparatives and led to one-time provisioning such as stamp duty of ₹89.90 Cr disclosed as exceptional
Group reported Other income of ₹233.89 Cr in Q4 FY2026 which includes interest and tax-related items that supported net profitability
Consolidated Total Expenses were ₹10,525.09 Cr in Q4 FY2026, showing operating cost base growth aligned with higher volumes and newly consolidated businesses
Basic EPS improved to ₹7.41 in Q4 FY2026 supported by higher PAT and increased share base management actions during the year
Guidance & Outlook
5
Board recommended a dividend of ₹2.00 per equity share for FY2026, indicating confidence in cash generation and capital allocation
Management flagged ongoing integration of acquired businesses (Orient, Penna, Adani Cementation / Adani Cement Industries) which will influence FY2027 operating metrics and comparatives
Management continues to monitor final rules under new Labour Codes and will assess impact on defined benefit obligations and compensated absences as regulations evolve
Capital expenditure and cash deployment include payments for prior acquisitions and OCD investments (Penna/Marwar) noted in the cash flow disclosures, indicating continued strategic investment into capacity and integration
Company disclosed appointment of cost auditors and internal auditors for FY2026-27, reflecting governance and control focus during post‑acquisition integration
Risks & Concerns
6
Exceptional Items of ₹102.51 Cr in Q4 FY2026 include stamp duty and labour-code impacts, creating one-off charges that reduce headline PBT and could recur if further regulatory interpretations arise
Core cement segment profit declined to ₹545.27 Cr in Q4 FY2026 vs ₹1,202.18 Cr in Q4 FY2025, signalling margin pressure at operations that could weigh on sustainable earnings
Material ongoing litigations (Competition Commission penalties for Ambuja and ACC and other state disputes) remain contingent exposures; management believes appeals have merit but no provision taken
Tax reversals and one-time deferred tax credits materially influenced PAT in FY2026 (e.g., reversal of provisions ~₹1,179.71 Cr standalone noted), creating earnings volatility and making underlying operating performance harder to read
Integration risk from multiple acquisitions and amalgamations (Penna, Sanghi, Orient, Adani Cementation) could pressure costs, working capital and execution if synergies are delayed
A downward movement in cement demand or sustained rise in power/fuel and freight costs (major expense lines) would compress margins given these are large cost items (Power and fuel ₹2,621.74 Cr annual consolidated line; Freight & forwarding significant)
AI-generated analysis. May contain inaccuracies — verify against original sources.