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Management's outlook for Ambuja Cements for FY26 reflects strong growth, buoyed by operational efficiencies and strategic acquisitions. The cement demand is projected to grow by 7-8% this financial year, a 1% increase from previous estimates, driven by government infrastructure initiatives.

Key financial highlights for Q1 FY26 include:

• A record sales volume of 18.4 million tonnes, marking a 20% year-on-year growth.
• Revenue surpassing Rs.10,000 crores at Rs.10,289 crores, a 23% increase year-on-year, bolstered by a 4% price gain and an increased share of premium product sales, now at 33% (up 43% YOY).
• Highest quarterly EBITDA achieved at Rs.1,961 crores, with EBITDA per tonne at Rs.1,069 (up 28% YOY).
• PAT at Rs.970 crores, a 24% increase YOY, and EPS grew to Rs.3.20, reflecting a 22% rise.
• The company aims for an EBITDA target of Rs.1,500 per tonne by 2028.

Ambuja has achieved significant milestones, including a vibrant channel network and improved operational efficiencies. The ongoing expansion plan targets a total capacity of 140 million tonnes by FY28, with an increase from 104.5 million tonnes to 118 million tonnes expected by the end of FY26. The company is also focused on reducing power and fuel costs, aiming for 60% of green energy usage by FY28.

In sustainability efforts, Ambuja recorded a 28.1% share of green power, and aims to reduce its power consumption costs significantly from Rs.5.9 per unit to Rs.4.5 per unit by FY28. The management emphasized continued investments in renewable energy and cost optimization strategies as part of their long-term growth strategy.

Overall, Ambuja is positioned well for future growth, capitalizing on operational enhancements and market demand.

Here are the major questions and their corresponding answers from the Q&A section of the earnings transcript:

1. Question: "If we look at on a sequential basis, there is a sudden increase in power and fuel logistics and other opex, can you help us understand what's happening here?"

   • Answer: "I understand your concern about consolidated financials. The increase in power and fuel costs was influenced by the integration of Orient. We experienced some disruptions in cost structure, but we're reducing power consumption and maintaining our fuel costs. By this quarter, we expect a significant stabilization in these expenses."

2. Question: "Can you reconcile the numbers on your consolidated basis for last quarter in terms of EBITDA and volume?"

   • Answer: "The EBITDA number hasn't changed significantly. The revisions reflect our shift to reporting only cement sales, excluding clinker. This gives a clearer picture of performance aligned with industry reporting practices."

3. Question: "If I exclude Orient's volume in this quarter, where does that leave us in terms of year-on-year volume growth?"

   • Answer: "Even adjusting for acquisitions, my volume growth stands at about 13%. The overall capacity utilization is around 77-78%, showing strong performance from integrated assets."

4. Question: "When will Orient's capacities be fully integrated?"

   • Answer: "Orient's integration is progressing well, with expectations of scaling up by the end of Q2. The full synergy benefits are anticipated to be realized shortly thereafter."

5. Question: "What's your expected CapEx for FY26 and payments related to Penna?"

   • Answer: "You can project CapEx around Rs.10,000 crore for FY26, including retention payments for Penna. The clinker assets from Penna are expected to be operational by the end of September."

6. Question: "Can you clarify why there is still a price gap between ACC and Ambuja?"

   • Answer: "The pricing gap reflects differences in power costs and efficiency. Ambuja benefits from captive coal mining, which drives lower fuel costs, while ACC is reliant on third-party supplies."

7. Question: "What is the expected date for the JPA acquisition?"

   • Answer: "The expected date for the JPA acquisition is still under wraps, as it's more related to Adani Enterprises. We'll be ready to address non-core assets later on."

8. Question: "How is the brand integration from Penna and Orient progressing?"

   • Answer: "The brand transition has been very smooth, positively received by dealers. Both brands are now performing well under the Ambuja and ACC names, driving better price realizations and volume growth."

Each answer stays within 500 characters, providing concise responses while ensuring key data and guidance are included.