What Is Driving Ambuja And ACC’s Margin Expansion And Capacity Growth Outlook?
About Ambuja and ACC
Ambuja Cements and ACC, part of the Adani Group, are among India’s largest cement producers. Both companies continue to leverage synergies in logistics, procurement, and raw materials under a unified strategy to optimize costs and enhance margins.
CLSA noted that Ambuja’s consolidated EBITDA beat expectations due to strong profitability and efficient cost management. The company also increased its FY28 capacity target to 155 million tonnes, up from 140 million earlier, signaling confidence in demand momentum.
Financial Highlights (Q2 FY26)
| Metric | Ambuja | ACC |
|---|---|---|
| Revenue (₹ Cr) | 8,156 | 5,987 |
| EBITDA Margin | 21.7% | 19.9% |
| EBITDA/tonne | ₹1,060 | ₹980 |
Ambuja’s cost reduction program continues to yield strong results. The company’s capacity expansion is on track, with debottlenecking efforts adding incremental efficiency gains. ACC also delivered stable volumes amid rising input costs.
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Peer Comparison
| Company | EBITDA/tonne (₹) | EBITDA Margin |
|---|---|---|
| Ambuja Cements | 1,060 | 21.7% |
| ACC | 980 | 19.9% |
| Ultratech | 1,125 | 22.5% |
Among peers, Ambuja continues to demonstrate strong profitability supported by supply chain efficiencies and lower energy costs. ACC remains a key beneficiary of group-level synergy benefits.
SWOT Analysis
Strengths
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Weaknesses
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While short-term cost pressures persist, capacity utilization and scale efficiencies are likely to sustain double-digit growth over the medium term.
Opportunities
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Threats
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Valuation & Investment View
- Short-term: Margins to improve from reduced fuel costs.
- Medium-term: Volume growth supported by infra spending and capacity ramp-up.
- Long-term: Operational integration and capex efficiency remain key strengths.
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Investor Takeaway
Market analysts at Indian-Share-Tips.com led by Gulshan Khera, CFP®, emphasize that Ambuja and ACC’s focus on cost optimization, expansion, and volume growth positions them strongly for FY27. Learn more at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Ambuja and ACC outlook
- What are Ambuja’s capacity expansion targets for FY28?
- How is ACC improving margins amid cost pressures?
- Which cement companies are best placed to benefit from infra push?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
