Ambuja Cements, the cement and building materials company of the diversified Adani Portfolio, delivered stellar financial results on a standalone and consolidated basis for Q4 and the full year ended March 31, 2025. This performance is supported by improved KPIs across operational parameters, showcasing the Company’s strength and resilience, healthy volume growth, value extraction of acquired assets, enhanced cost leadership, and group synergies.
Vinod Bahety, Whole Time Director & CEO of Ambuja Cements, said, “This year marks a historic milestone in the journey of Ambuja Cements as we cross the 100 MTPA capacity. Additionally, we have ongoing organic expansions at various stages across the country, which will help us achieve 118 MTPA capacity by the end of FY 2026, a significant step, bringing us closer to our goal of 140 MTPA by 2028. The 100 MTPA milestone is not just a number; it’s a mark of our ambition, resilience, and purpose. As India builds the foundation for a USD 10 trillion economy, we are committed to building the nation’s infrastructure that empowers growth, connects communities, and supports a greener tomorrow. Driven by Purpose and Defined by Progress - ‘Hum Karke Dikhate Hain’.”
Ambuja Cements has implemented several efficiency initiatives across capital and operational expenditure, reinforcing its cost leadership in the industry. Focused branding and enhanced technical support services have increased volumes and expanded margins. The company made significant strides in green energy, increasing its Waste Heat Recovery System (WHRS) power share by 4.8 percentage points to 17.3% and its solar power mix by 5.8 percentage points to 8.2%, raising its total green power share to 26.1%. Ambuja is on track to achieve 60% green power by FY28, with a planned 1 GW renewable energy (RE) capacity by then. In FY25, 200 MW of solar and 99 MW of wind power in Khavda, Gujarat, were commissioned, delivering annualised cost savings of Rs 30 per metric tonne (PMT) and expected EBITDA improvements.
Additionally, a shift in fuel basket helped reduce kiln fuel costs by 14%, from Rs 1.84 to Rs 1.58 per '000 Kcal. Logistics costs were also reduced by 2% to Rs 1,238/tonne, driven by improved lead distance efficiency and higher direct dispatch rates, with further savings anticipated from a modal shift to marine logistics. The supply route from Krishnapatnam to Cochin and Mangalore has begun, optimising freight costs by Rs 5 PMT.
Acquisitions like Penna, Sanghi, Asian, and Tuticorin Grinding Units (GUs) have expanded Ambuja’s market presence, improving capacity utilisation and reducing costs. The deployment of BCFC rakes is expected to lower logistics costs further, and acquired assets like Penna are stabilising, with clinker capacity utilisation reaching around 80%. Ongoing cost reduction efforts in fuel, fly ash, logistics, and manpower productivity are set to achieve a target cost of Rs 3,650 PMT by FY28, further enhancing EBITDA margins.
Ambuja Cements has demonstrated strong financial performance, with higher volumes and improved operational parameters driving growth across all key business metrics. The company reported an EBITDA per metric tonne (PMT) of Rs 1,001 and an EBITDA margin of 18.9%. Net worth increased by Rs 12,969 crore, bringing the total to Rs 63,811 crore, while the company remains debt-free and maintains the highest credit ratings of CRISIL AAA (Stable) and CRISIL A1+. Cash and cash equivalents stood at Rs 10,125 crore, positioning the company well for accelerated growth in the future. Additionally, Ambuja Cements reported a business-level working capital cycle of 28 days, highlighting its operational agility in efficiently managing inventory and receivables.
In the context of the company's ongoing capex and growth plans, the Board of Directors has recommended a dividend on equity shares at Rs. 2.0 per share, which is consistent with last year.
Ambuja Cements continues demonstrating its commitment to sustainability and environmental responsibility through a series of impactful ESG initiatives. Blended cement now makes up 82% of its product mix, reflecting its focus on eco-friendly practices and minimising CO2 emissions. The company has created significant societal value, positively impacting the lives of 5.7 million people through community engagement efforts in healthcare, education, employment, and sustainable livelihoods.
Ambuja has also taken a leadership role in water governance, achieving 12x water positivity, and has reached an impressive 11x plastic negativity through the co processing of plastic waste in its cement kilns. In line with its environmental goals, the company has pledged to plant 8.3 million trees by 2030, contributing to the Adani Group’s ambitious plan to plant 100 million trees. Furthermore, Ambuja processed over 20.88 million tonnes of waste-derived resources, fully embracing the principles of a circular economy.
Ambuja Cements has continued strengthening its brand presence and technical expertise across various sectors. The company has partnered with the Gujarat Giants for the 2025 Women’s Premier League, further reinforcing its commitment to sports and community engagement.
Implementing Ambuja Certified Technology at 19,714 customer sites has helped strengthen homes. Its extensive skill development programme trained 3,019 contractors through various workshops and 1,053 plant visits, providing deeper product insights. Additionally, a series of technical events for 2,482 construction professionals has enhanced knowledge sharing within the industry. Ambuja also redefined its brand positioning, aiming to increase the share of premium products from 13% to 40%. As a result, premium products now account for 29% of trade sales, reflecting a significant shift in market perception.
Ambuja has embraced digitalisation to streamline operations and improve customer service. Launching the ‘Reward Connect’ app provides a loyalty rewards platform, enabling pan-India online redemption of points for industry influencers and channel partners. The company deployed an OT Security Monitoring solution for real-time threat detection to bolster cybersecurity. AI, IoT, video analytics, and optimisation technologies enhance decision-making processes and customer service. Advanced logistics systems utilising GPS, RFID, and algorithms ensure real-time tracking and seamless coordination, while a new Safety Dashboard improves fleet management and operational oversight. Unified platforms like OneConnect and Adani Cement Connect have also revolutionised sales operations, which enhance efficiency and user experience. Furthermore, Ambuja has digitalised its HR processes by implementing Oracle Fusion for workforce management and Kronos for managing third-party contractors.
