Green Power and Growth: Ambuja’s Winning Formula
Newzdaddy Business Updates
Synopsis of the Article
Ambuja Cements crosses the 100 MTPA capacity mark, becoming the world’s 9th largest cement company.
Delivers the highest-ever annual Profit After Tax (PAT) of ₹5,158 Cr, up 9% year-on-year.
Records a landmark 65.2 Mn T annual sales volume (up 10% YoY) and ₹35,045 Cr in revenue (up 6% YoY).
Q4 FY’25 sees the highest quarterly volume at 18.7 Mn T (up 13% YoY) and consolidated EBITDA of ₹1,868 Cr (up 10% YoY).
Standalone PAT jumps 75% to ₹929 Cr; cash and cash equivalents stand at ₹10,125 Cr.
Commissioned 2.4 MTPA brownfield expansion at Farakka and 0.5 MTPA debottlenecking across plants; completed Orient Cement acquisition.
Brought 299 MW of renewable energy online (200 MW solar and 99 MW wind), on the path to 1 GW by June 2026.
Achieves green power share of 26.1%; reduces kiln fuel cost by 14% and logistics cost by 2%.
Board proposes a dividend of ₹2.00 per equity share, in line with last year.
Ambuja Cements has reached a historic milestone by crossing the 100 million tonnes per annum (MTPA) capacity mark. This achievement not only places Ambuja among the top ten cement makers globally but also reflects its steady growth journey. For the year ending March 31, 2025, the company delivered a record annual Profit After Tax (PAT) of ₹5,158 crore—a 9% rise over the previous year. Ambuja’s consolidated revenue also hit a high of ₹35,045 crore (up 6% YoY), while cement and clinker sales crossed 65.2 million tonnes, marking a 10% increase in volumes. These figures show how robust operational performance and strategic investments have powered Ambuja’s rise.
Operational excellence has driven much of this success. In FY 2025, Ambuja commissioned a 2.4 MTPA brownfield expansion at its Farakka Grinding Unit in West Bengal, along with a 0.5 MTPA capacity boost at several other plants. The acquisition of Orient Cement added scale and market reach, delivering immediate synergies. On the renewable energy front, Ambuja brought 299 MW of wind and solar power online, edging closer to its 1 GW target by June 2026. By integrating waste heat recovery systems and shifting to cleaner fuels, the company increased its green power share to 26.1% and set a clear roadmap to hit 60% green power by FY 2028.
Cost leadership remains central to Ambuja’s strategy. The company slashed kiln fuel cost by 14%, from ₹1.84 to ₹1.58 per ’000 kCal, through a mix of fuel basket agility and efficiency measures. Logistics costs fell by 2% to ₹1,238 per tonne as lead distances shortened and direct dispatch grew to 58%. Marine shipments from Krishnapatnam to Cochin and Mangalore have begun, promising further cost savings. Initiatives like deploying broad-gauge rakes and modal shifts will deepen these savings in the coming quarters. Meanwhile, acquired assets such as Penna and Sanghi plants have stabilised, with clinker utilisation rising to around 80%, boosting margins further.
On the financial side, Q4 FY 2025 delivered standout numbers: consolidated revenue of ₹9,889 Cr (up from ₹8,894 Cr a year ago), EBITDA of ₹1,868 Cr at an 18.9% margin, and PAT of ₹1,282 Cr. Standalone performance was equally strong, with PAT surging 75% to ₹929 Cr and other income at ₹442 Cr. The balance sheet is rock-solid: net worth rose to ₹63,811 Cr, and the company remains debt-free with Crisil AAA ratings. Cash reserves of over ₹10,000 Cr give Ambuja ample firepower for future growth. The board has recommended a dividend of ₹2.00 per share, matching last year’s payout, factoring in ongoing capex plans.
Ambuja’s focus on sustainability and global best practices underpins its long-term vision. It benchmarks energy efficiency, carbon footprint, water use, and digital adoption against world-class peers. The company has adopted frameworks like the Science-Based Targets initiative and the Task Force on Climate-related Financial Disclosures to guide its ESG roadmap. From co-processing plastic waste to achieving 12× water positivity, Ambuja is pioneering circular-economy measures. Its partnership with Finland’s Coolbrook to pilot electric process heating technology further shows its drive to cut emissions.
Looking ahead, India’s cement demand is poised for another year of healthy growth, estimated at 7–8% for FY 2026, driven by infrastructure spending, rural revival, and a buoyant real estate sector. With an expanding capacity of 118 MTPA by next year and a clear path to 140 MTPA by 2028, Ambuja Cements is well-placed to support India’s USD 10 trillion economy dream, one sustainable brick at a time.
Must Read:
Ambuja Cements Makes ₹1600 Crore Investment in Bihar, Changing the State’s Future
Ambuja Cements Sets New Records with Impressive Growth in Q2 FY’25
