Green Growth: Ambuja’s Capacity Surge and Record Earnings
Adani Group’s Ambuja achieves 100 MTPA milestone, posts highest-ever profit fueled by volume, strategic moves, and commitment to sustainability.
Ambuja Cements, a prominent entity within the Adani Group, has achieved a major milestone in the cement sector, now boasting a production capacity that exceeds 100 million tonnes annually. The company also announced its highest-ever annual profit after tax (PAT) of ₹5,158 crore, demonstrating a robust 9% year-on-year (YoY) increase for the fiscal year concluding on March 31, 2025.
This noteworthy accomplishment propels Ambuja Cements to become the ninth-largest cement producer worldwide based on its production capabilities. The company’s exceptional financial performance throughout FY25 was propelled by substantial growth in sales volumes, strategically advantageous acquisitions, and enhanced operational efficiencies implemented across its various units. Throughout the entirety of fiscal year 2025, Ambuja Cements registered its peak annual sales volume to date, hitting 65.2 million tonnes, a substantial 10% rise year-over-year. The company also celebrated a record annual revenue figure of ₹35,045 crore, demonstrating a robust 6% growth from the prior fiscal year.
In his remarks on this notable milestone, Vinod Bahety, the Whole Time Director & CEO of Ambuja Cements, stated, “Exceeding the 100 million tonnes per year production mark is a truly momentous occasion for Ambuja Cements.” This milestone underscores our inherent strength, our ambitious plans for growth, and our steadfast commitment to the progress of India’s infrastructure.” This milestone puts us on a firmer path towards our ambition of reaching a production capacity of 140 MTPA by the financial year ending 2028.
Strong Fourth-Quarter Performance and Operational Highlights
In the final quarter of fiscal year 2025, Ambuja Cements exhibited significant momentum, announcing a standalone profit after tax (PAT) of ₹929 crore, marking a considerable 75% increase compared to the corresponding period in the previous year. The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the fourth quarter stood at ₹1,868 crore, with an impressive EBITDA per tonne (PMT) of ₹1,001 and healthy EBITDA margins of 18.9%. Quarterly cement sales volume reached an all-time high of 18.7 million tonnes, reflecting a strong 13% increase on a year-over-year basis. Notably, Ambuja Cements continues to maintain a debt-free status, with a robust net worth of ₹63,811 crore and substantial cash reserves amounting to ₹10,125 crore.
Growth Fueled by Environmental and Digital Initiatives
Demonstrating a strong commitment to sustainability, Ambuja Cements has made substantial progress in its renewable energy transition, with 299 MW of green power capacity now operational, including 200 MW from solar sources and 99 MW from wind energy. This is part of a larger strategy to reach 1 GW of renewable capacity, with the remaining portion expected to be operational by the end of fiscal year 2026.
Consequently, the share of green power in the company’s energy mix has risen to 26.1%, with an ambitious target of reaching 60% by FY28. Furthermore, the company’s proactive implementation of cost-saving measures across various operational areas, including logistics, fuel consumption, and manpower optimization, has contributed significantly to maintaining its industry-leading profit margins.
The strategic acquisition of Orient Cement and the successful operational stabilization of the recently acquired Penna and Sanghi cement assets have played a crucial role in enhancing the company’s overall scale of operations and realizing significant synergy benefits. Ambuja Cements is also actively investing in digital transformation across its value chain, incorporating AI-driven operational processes, implementing smart logistics solutions, and enhancing customer engagement through user-friendly mobile applications such as OneConnect and Reward Connect.
Industry analysis indicates that India’s overall cement consumption experienced a growth rate of approximately 6.5-7% in the fourth quarter of FY25, supported by increased construction, rural demand, and infrastructure investments. Looking ahead to FY26, market forecasts project a further growth in cement demand of 7-8%, primarily driven by a pro-infrastructure focus in the government’s budget allocations and a positive outlook for the residential housing sector.
Commitment to Sustainability and Industry Recognition
Ambuja Cements continues to be recognized as a leader in sustainability within the industry, achieving significant water positivity and plastic negativity ratios. A substantial portion of its product mix comprises blended cement. The company has also pledged to plant 8.3 million trees by 2030, aligning with the Adani Group’s broader environmental goals. The company’s commitment has been acknowledged through awards like the Golden Peacock Award 2024 for ESG excellence and an ‘A-’ rating in the CDP Climate Leadership Score. TRA Research has also named Ambuja Cements as ‘India’s Most Trusted Cement Brand’ for the second consecutive year.
Final Thoughts:
Ambuja Cements Solidifies Market Position Through Capacity Expansion, Profitability, and Sustainable Practices
Ambuja Cements’ achievement of surpassing 100 MTPA in production capacity, coupled with its record-breaking annual profit, underscores its strong operational execution and strategic growth initiatives within India’s dynamic cement sector. The company’s commitment to expanding its green energy footprint and embracing digital transformation further positions it for sustainable and efficient growth. Its proactive approach to cost management, strategic acquisitions, and focus on meeting the growing demand have been key drivers of its success. Furthermore, Ambuja Cements’ consistent recognition for its ESG efforts and brand trust reinforces its position as a responsible and leading player in the industry. As India’s infrastructure development and housing sector continue to grow, Ambuja Cements appears well-positioned to capitalize on these opportunities while maintaining its focus on sustainability and innovation.
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