Ambuja Cement (ACEM IN) – Q1FY27 Result Update – Recalibration strategy impacts near term volumes – BUY
Published on 29 Jul 2026
Ambuja Cement (ACEM) delivered an inline operating performance in Q1FY27, despite volumes getting impacted on recalibration strategy favouring value over volumes. ACEM sacrificed low-margin volumes in non-trade segment (-21% YoY), resulting in a 7% YoY decline in cement volumes. Cement NSR improved just 1% QoQ despite price hikes across regions & premium product share of 34%, due to the consolidation of acquired assets. Cement cost declined by INR206/t QoQ, driven by lower clinker factor and better operational efficiencies, partly offset by imported fuel inflation and packing costs, leading to EBITDA/t of INR918 (vs. PLe: INR851/t). Mgmt. reiterated its FY27 volume growth guidance of ~8% and expects to recover the market share loss over the remaining quarters through stronger trade volumes & capacity additions. Maintain ‘BUY’ with revised TP of Rs504 (Rs520 earlier) valuing at same 15x EV of Mar’28E EBITDA.
