Equity Snap: Ambuja Cements Ltd (ACEM IN): Volumes, Costs and Earnings all decline

Research evidence excerpt

Equity Snap: Ambuja Cements Ltd (ACEM IN): Volumes, Costs and Earnings all decline

28 July 2026

Equity Snap: Ambuja Cements Equities Construction Materials

Ltd (ACEM IN)

Volumes, Costs and Earnings all decline India

◆ ACEM reported a large volume decline (-7% y/y with Non Pinakin Parekh*

Trade down 21% y/y), muted ASP/t increase (1% q/q) but SeniorHSBC SecuritiesAnalyst, Indiaand CapitalMetalsMarketsand Cement(India) Private

large cost decline. ACEM is focusing on value over volumes Limited pinakin.parekh@hsbc.co.in

and overall the focus is only on the Trade Segment for now. +91 22 40891549

Prateek Maheshwari*, CFA

Analyst, India IT Services

Ambuja Cements Ltd (ACEM IN, INR426.00, Hold, TP INR490.00) HSBC Securities and Capital Markets (India) Private

Limited

(Priced as of 28 Jul 2026) prateek.maheshwari@hsbc.co.in

+9198 1937 0718

Large decline in volumes as ACEM rationalized low margin volumes and

Sagar Desai*

focused on Value over Volume: ACEM reported consolidated EBITDA at Analyst, India IT Services

INR15.9bn (-19% y/y) v/s consensus at INR15.7bn and PAT at INR6.6bn (-21% y/y). HSBC Securities and Capital Markets (India) Private

Sales volumes declined sharply by 7% y/y to 17.1MT (v/s other cement sagar.desai@hsbc.co.in

companies like UTCEM, JKCE, Dalmia and Nuvoco who have all reported y/y volume +91 83 6919 9927

growth in 1QFY27). ACEM highlighted that it rationalized low margin volumes

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

and focused on value over volume. not registered/ qualified pursuant to FINRA regulations

Analyst call highlights- Large decline in Non Trade segment: ACEM highlighted

its focus on premium products and value over volume (trade volume share at 78% in

1QFY27 v/s 74% in 4QFY26).