Shares of Ambuja Cements, a part of the Adani Group, rallied up to 3% on Monday after the cement manufacturer reported stellar earnings for the second quarter ended September 30, 2025. The company reported an over three-fold jump in its net profit for the July–September quarter of the current financial year (Q2 FY26), aided by a tax gain.

For the September quarter of FY26, Ambuja Cements reported a 364% year-on-year rise in consolidated profit after tax (PAT), aided by an income tax provision reversal of ₹1,697 crore. The cement major’s Q2 consolidated PAT stood at ₹2,302.3 crore, compared with ₹496.5 crore in the corresponding period last year.

The Adani Group company’s revenue from operations increased 21.5% year-on-year (YoY) to ₹9,174 crore in Q2 FY26, against ₹7,552 crore in the same quarter last year.

“This quarter has been noteworthy for the cement industry. Despite the headwinds from prolonged monsoons, the sector will benefit from the tailwinds of several favourable developments, including GST 2.0 reforms, the Carbon Credit Trading Scheme (CCTS), and the withdrawal of coal cess,” said Vinod Bahety, Whole-Time Director and CEO of Ambuja Cements.

On the operating front, EBITDA surged 58.5% YoY to ₹1,761 crore, up from ₹1,111 crore in Q2 FY25, while operating margins expanded by 450 basis points to 19.2% from 14.7% a year earlier. EBITDA per tonne also improved 32% YoY to ₹1,060, as per the earnings filed with the exchanges.

As of September 30, 2025, Ambuja Cements’ net worth stood at ₹69,493 crore, up by ₹3,057 crore during the quarter.

According to the exchange filing, cement sales volumes rose 20% YoY to 16.6 million tonnes, marking its highest-ever second-quarter performance. Ambuja noted that its volume growth was nearly five times the industry average, underscoring its strong market momentum.

Raised FY28 target capacity by 15 MTPA from 140 MTPA earlier

Looking ahead, Bahety said the company remains optimistic about double-digit revenue growth and aims to sustain a four-digit EBITDA per tonne for the remainder of FY26.

“By the end of FY26, we target to deliver a total cost of ₹4,000 per tonne and a further 5% reduction YoY for the next two years, helping us achieve the cost target of ₹3,650 per tonne by FY28,” Bahety said.

He added that the company has increased its FY28 target capacity by 15 MTPA—from 140 MTPA earlier to 155 MTPA now. “This increase of 15 MTPA from debottlenecking initiatives will come at a much lower capex of $48/MT.”

Boosted by the Q2 results, shares of Ambuja Cements gained as much as 3% to hit an intraday high of ₹582.70 on the BSE today. The Adani Group stock finally ended the day’s trade at ₹578.80, up 2.4%, with a market capitalisation of ₹1.43 lakh crore.

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