Ambuja Cements: 1QFY27: A complicated beat

Research evidence excerpt

Ambuja Cements: 1QFY27: A complicated beat

J P M O R G A N Asia Pacific Equity Research

29 July 2026

Ambuja Cements Neutral

ABUJ.NS, ACEM IN

1QFY27: A complicated beat Price (28 Jul 26):Rs426.00

Price Target (Mar-27):Rs435.00

ACEM reported stronger than expected consolidated PAT of Rs.5.7bn (JPMe: Head of India Research

ACRs.3.7bn; consensus: Rs.4.1bn). EBITDA of Rs.15.9bn was only 3% ahead, Sanjay Mookim

though, with a) volumes of 17.1MT down 7% YoY and missing sharply, but b) (91-22) 6157-3600

headline EBITDA/MT of Rs.929 was well ahead. Realizations were flat sanjay.mookim@jpmorgan.com

sequentially (diverging from other cement results this quarter), but overall costs Atishy Rathi, CFA

fell more (again diverging from other cement results so far). We felt management’s (9122) 6157-3589

tone on the call was more optimistic than in the previous quarter, with the company atishy.rathi@jpmchase.com

J.P. Morgan India Private Limited, J.P. Morgan

guiding to 8% volume growth for FY27, possibility for further cost optimization Tower, Santacruz(E), Mumbai - 400098, SEBI

and capacity growth to 119 MT by year end. Execution remains key - Maintain Registration: INH000001873, (91-22) 6157-3000.

Neutral.

• PAT beat - largely below the line: ACEM’s consolidated 1Q EBITDA was Style Exposure

largely in line with JPMe/consensus. The PAT beat was driven by lower

depreciation and lower minority interest (lower profits at subsidiaries - ACC

for example). Other income was higher than expected but was partially offset

by higher interest expense. Headline volumes (17.1 MT in 1Q; 19.9MT in 4Q)

were down 7% YoY, but EBITDA/MT of Rs.929 was ahead of forecasts.

• Opting for value over volume: Management reiterated their preference for

profitability over volumes during the earnings call.