Adani Group-owned Ambuja Cements on Friday reported an 86% year-on-year decline in its consolidated net profit at ₹366.97 crore for the quarter ended December 31, 2025, weighed down by margin pressure and an unfavourable base effect. The company had posted a consolidated net profit of ₹2,663 crore in the corresponding quarter last year.

Revenue from operations during the quarter rose 9.2% year-on-year to ₹10,277 crore, compared with ₹9,411 crore in Q3 FY25, supported by stable demand and improved volumes. However, higher costs and weak pricing limited the benefit of topline growth.

EBITDA declines as costs stay elevated

Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 21% year-on-year to ₹1,353.12 crore in Q3 FY26 from ₹1,711.85 crore a year earlier. EBITDA margins contracted sharply during the quarter, reflecting elevated power and fuel costs, higher freight expenses and limited pricing power in a highly competitive market environment.

The cement maker continued to face pressure from energy and logistics costs despite increased use of alternative fuels and efficiency measures.

High base impacts profit comparison

The steep fall in net profit was further accentuated by a high base in the year-ago quarter, which had benefitted from non-recurring income and stronger operating margins. On a sequential basis, performance showed signs of stabilisation, though profitability remained significantly lower on a year-on-year basis.

Pricing pressure offsets volume stability

Cement volumes during the quarter were largely stable, but realisations remained under pressure amid intense competition and uneven demand across regions. Management indicated that while demand conditions improved gradually towards the latter part of the quarter, pricing discipline across the industry remained weak.

What lies ahead

Looking ahead, the company said it expects demand to improve in the coming quarters, supported by infrastructure spending, housing activity and government-led capital expenditure. Ambuja Cements added that cost-control initiatives, operational efficiencies and better pricing discipline are expected to aid margin recovery.

The shares of Ambuja Cements slipped 4.95% to end at ₹509.50 apiece on the national stock exchange today. The company's shares have declined over 17% in the past six months, underperforming the Nifty 50 index that has risen nearly 2% during the period.