Ambuja Cements' Profit Slumps 65% as Margins Shrink Sharply
The cement major saw a sharp sequential drop in both sales and profitability, with net profit margin falling to 6.9% from 17.0% last quarter.
Ambuja Cements reported a sharp contraction in Q1 FY27, with revenue down 7.7% year-on-year and profit falling 36.6%. Profitability weakened significantly from the previous quarter.
Ambuja Cements began fiscal 2027 on a weak note, with both revenue and profit declining sharply from the previous quarter. The results highlight significant pressure on profitability, as the company's net profit margin contracted to less than half of its level from the same period last year.
Revenue for the quarter ended June 2026 stood at ₹9,500 crore, a 7.7% drop compared to Q1 FY26 and a 13.0% sequential decline from the strong March quarter. Profit after tax fell even more sharply, down 36.6% year-on-year and a steep 64.5% quarter-on-quarter to ₹660 crore. The net profit margin for the quarter was just 6.9%, a significant drop from 10.1% a year ago and 17.0% in the preceding quarter.
A look at the last five quarters shows volatile performance, with profitability swinging widely.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 9,500.0YoY -7.7% | 10,915.5 | 10,289.0 |
| Profit (₹ Cr) | 660.0YoY -37% | 1,857.4 | 1,041.0 |
| Net Profit Margin (%) | 6.9YoY -32% | 17.0 | 10.1 |
Key Points
- The company maintains a strong balance sheet with zero debt and a healthy interest coverage ratio of 15.75.
- Trailing twelve-month (TTM) performance shows a net profit margin of 13.0%, still above the latest quarter's figure.
- The stock has declined 26.2% over the past year, and at a P/E of 21.0, it trades at a 38.6% discount to the industry average of 34.1.
The immediate challenge for Ambuja Cements is to stabilize its profitability, which has fallen well below its recent historical range.
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· AMBUJACEM
(BSE)
ISIN: INE079A01024
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