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Green Power and Growth: Ambuja’s Winning Formula

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Green Power and Growth: Ambuja’s Winning Formula

Green Power and Growth: Ambuja’s Winning Formula

Green Power and Growth: Ambuja’s Winning Formula

Newzdaddy Business Updates

Synopsis of the Article

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.

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