Ambuja Cements Q2 net profit plunges 90 pc as margins come under pressure

Ambuja Cements, a cement manufacturer owned by the Adani Group, announced on Thursday that its net profit fell by an alarming 90% in the second quarter of fiscal year 2026, compared to the same period last year. The company's subsidiary, Ambuja Cements Limited, reported a consolidated net profit of ₹236 crore, down from ₹2,336 crore in Q2 FY26. Although revenue from operations remained relatively stable at ₹9,166 crore, total expenses rose by 6.6% to ₹8,877 crore, putting pressure on the company's profitability.

The decline in profit was largely due to a substantial tax credit recognized in Q2 FY26, which amounted to ₹1,453 crore. However, in Q2 FY27, the company did not receive any tax benefits, leading to a significant drop in profit. The company also reported exceptional expenses of ₹85 crore, as opposed to ₹223 crore in the previous year.

On a quarter-on-quarter basis, Ambuja Cements' net profit declined by 64.2% from ₹660 crore in the June 2026 quarter. Revenue from operations saw a slight decrease of 3.3% from ₹9,474 crore to ₹9,166 crore. Basic earnings per share fell to ₹0.78 from ₹7.19 a year earlier.

In the half-year period ending September 30, 2026, Ambuja Cements reported a consolidated revenue from operations of ₹18,640 crore, which was lower than the ₹19,374 crore reported in the same period last year. Consolidated net profit declined to ₹896 crore from ₹3,377 crore, while profit before tax fell to ₹1,146 crore from ₹2,310 crore.

The company's board approved the proposed acquisition of a 26% equity stake in SWE Renewables Limited for around ₹33.75 crore. This move aims to support captive wind power procurement. The statutory auditors issued an unmodified limited review conclusion, while they highlighted pending competition-related litigation.