Ambuja Cement (ACEM IN) – Q4FY26 Result Update – Weak Quarter; Recalibration & Reset Ahead – BUY
Published on 05 May 2026
Ambuja Cement (ACEM) delivered a weak cons Q4 operating performance, impacted by a) lower ramp up & higher repairs at acquired assets, b) softer volume growth of 7% YoY and c) elevated costs on branding, fuel and freight. Cement NSR increased marginally despite price hikes in regions and higher premium cement share of ~36%. RM & other costs increased on higher fly ash & PP bags inflation while freight costs impacted amid plant shutdowns leading to cost rising to ~INR4,500/t. EBITDA/t declined to INR728/t (PLe INR771/t). Management indicated Q4 costs represent a peak, with reduction expected ahead, while guiding for ~8% volume growth in FY27. At CMP, the stock is trading at EV of 14.8x/12.4x of FY27/28E EBITDA. Maintain ‘BUY’ with revised TP of Rs524 (Rs598 earlier) valuing at same 15x EV of Mar’28E EBITDA.
