Stovekraft Stock Corrected 7.6% Despite 14% Revenue Growth and 28% PAT Growth in Q2 FY26
03 Nov 2025
Ambuja Cements Q2 FY26 financial results analysis with record performance highlights
₹ 577
+2.14% increased today
03 Nov 3:30 p.m.
Financial Performance Overview
Ahmedabad, India, November 3, 2025: Ambuja Cements Limited, part of the diversified Adani Portfolio and the 9th largest building materials solutions company globally, delivered an exceptional performance in the second quarter, ending September 30, 2025, of the fiscal year 2025-2026.
Key Financial Highlights (Q2 FY26 - Consolidated)
Revenue
₹9,174 Cr
+21% YoY
Operating EBITDA
₹1,761 Cr
+58% YoY
Net Profit (PAT)
₹2,302 Cr
+364% YoY
EBITDA Margin
19.2%
+4.5 pp YoY
EPS (Diluted)
₹7.2
+267% YoY
Cement Sales Volume
16.6 MnT
+20% YoY
Quarterly Performance Comparison (Consolidated)
| Financial Metric | Q2 FY26 | Q2 FY25 | YoY Change | Performance |
|---|---|---|---|---|
| Revenue (₹ Cr) | 9,174 | 7,552 | +21% | Excellent |
| Operating EBITDA (₹ Cr) | 1,761 | 1,111 | +58% | Outstanding |
| PAT (₹ Cr) | 2,302* | 496 | +364% | Exceptional |
| EBITDA Margin | 19.2% | 14.7% | +4.5 pp | Strong |
| EPS (Diluted) | ₹7.2 | ₹2.0 | +267% | Excellent |
| Sales Volume (MnT) | 16.6 | 13.8 | +20% | Strong |
*Includes income tax provision reversal of ₹1,697 Cr
Management Commentary
CEO Statement - Mr. Vinod Bahety
Operational Excellence & Cost Leadership
Cost Reduction Achievements (YoY)
| Cost Parameter | Q2 FY26 | Q2 FY25 | Reduction | Impact |
|---|---|---|---|---|
| Kiln Fuel Cost | ₹1.60/'000 kCal | ₹1.63/'000 kCal | 2% | Lowest among peers |
| Power Cost | ₹5.96/kWh | ₹6.34/kWh | 6.0% | Improved |
| Logistics Cost | ₹1,224/t | ₹1,317/t | 7% | Significant |
| Green Power Share | 32.9% | 18.6% | +14.3 pp | Excellent |
| Direct Dispatch | 59% | 54% | +5 pp | Improved |
Capacity Expansion & Growth Strategy
Ambitious Growth Roadmap
Stock Performance & Key Metrics
Ambuja Cements Stock Analysis
Market Cap
₹1,42,749 Cr
Current Price
₹577
52W High / Low
₹625 / ₹453
Stock P/E
24.8
Undervalued vs Industry
Industry P/E
38.9
Book Value
₹228
Dividend Yield
0.35%
ROCE
10.5%
ROE
8.73%
Face Value
₹2.00
EPS
₹23.0
Debt to Equity
0.02
Total Debt
₹1,271 Cr
No. of Shares
247 Cr
Strategic Initiatives & Innovation
Technology & Digital Transformation
Balance Sheet Strength & ESG Leadership
Financial Strength & Sustainability
Net Worth
₹69,493 Cr
Debt Status
Debt Free
Credit Rating
CRISIL AAA
Water Positive
12x
Plastic Negative
11x
Trees Planted
7.1 Mn
🎯 Global Recognition & Awards
Overall Performance Assessment: Ambuja Cements delivered an exceptional Q2 FY26 performance with record revenue, 364% PAT growth, and strong volume expansion. The company's strategic focus on cost leadership, capacity expansion, and digital transformation through CiNOC positions it well for sustained growth. With a debt-free balance sheet, industry-leading ESG credentials, and ambitious capacity expansion to 155 MTPA by FY28, Ambuja is well-positioned to capitalize on India's infrastructure growth story. The stock trades at a P/E of 24.8, which is significantly below the industry average of 38.9, suggesting attractive valuation relative to peers.
"This quarter has been noteworthy for the cement industry. Despite the headwinds from prolonged monsoons, the sector will benefit from the tailwinds of several favourable developments including GST 2.0 reforms, the Carbon Credit Trading Scheme (CCTS), and the withdrawal of coal cess."
"Our capacity expansion is well timed to capitalize on this positive momentum. We have upped our FY28 target capacity by 15 MTPA from earlier 140 MTPA to now 155 MTPA. This increase of 15 MTPA from debottlenecking initiatives will come at a much lower capex of USD 48/MT."
"The leadership journey has resulted in a 5% lower cost of sales YoY, and enabled our existing assets to deliver a PMT EBITDA of ~Rs. 1,189 PMT, and an overall EBITDA of Rs. 1,060 PMT. Our outlook for the balance period of FY26 remains positive. We remain optimistic about delivering double digit revenue growth and four digits PMT EBITDA."
"Our Cement Intelligent Network Operations Centre (CiNOC) will enable a paradigm shift across business operations. AI will run deep into our enterprise fabric, bringing efficiency, productivity and deeper engagement with stakeholders across the value chain."