#PAT #GROWTH 5 YearCAGR 11.3%
In FY24, PAT was โน1,324 cr, growth of 26% YoY. Adjusted PAT grew by 27% YoY. In FY24, exceptional loss incurred stood at โน20 cr ( for FY23: โน11 cr). Exceptional loss pertains to severance and related expenses with respect to certain organisation structure changes. In Q1 FY25, PAT was โน364 cr, up by 33% YoY. Adjusted PAT growth for the period was 24% YoY (for Q1 FY24 it incurred exceptional loss of โน20 cr). Going forward, profitability is likely to be supported by a strong brand recall and sustained leadership in its core portfolio (Colgate Strong Teeth, Colgate MaxFresh and Colgate Active Salt), premuimisation coupled with product innovation and renovation. It is also looking to grow its oral care adjuncts like floss and mouthwash, and and leveraging its Palmolive brand. However, this can be partially impacted by slow category growth coupled with high competitive intensity in oral care segment.
In FY24, PAT was โน1,324 cr, growth of 26% YoY. Adjusted PAT grew by 27% YoY. In FY24, exceptional loss incurred stood at โน20 cr ( for FY23: โน11 cr). Exceptional loss pertains to severance and related expenses with respect to certain organisation structure changes. In Q1 FY25, PAT was โน364 cr, up by 33% YoY. Adjusted PAT growth for the period was 24% YoY (for Q1 FY24 it incurred exceptional loss of โน20 cr). Going forward, profitability is likely to be supported by a strong brand recall and sustained leadership in its core portfolio (Colgate Strong Teeth, Colgate MaxFresh and Colgate Active Salt), premuimisation coupled with product innovation and renovation. It is also looking to grow its oral care adjuncts like floss and mouthwash, and and leveraging its Palmolive brand. However, this can be partially impacted by slow category growth coupled with high competitive intensity in oral care segment.
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#COMPANY #POTENTIAL
The toothpaste category in India is valued at ~โน18,000 cr, and comprises 70% of the total oral care segment. The per capita use of toothpaste remains low in India and this represents opportunity for category growth. โข In Q2 CY24, the FMCG industry reported value growth of 4% YoY. Volume growth was 3.8% YoY v/s 6.5% in the March quarter. โข The rural volume growth in the quarter stood at 5.2% while urban was at 2.8%. In Q1 CY24, rural volume growth stood at 7.6% and urban was at 5.7%. โข Price growth stabilized at 0.2%, indicating stable market environment. โข The non-foods, volume growth stood at 7.6% in the quarter ended June compared to 11.1% in the quarter ended March. โข During the quarter, the decline in consumer demand for Personal Care & Home Care categories was seen in both urban and rural markets. โข In urban markets, Personal Care categories witnessed volume growth of 5.2% in Q2 CY24 (v/s 9.7% in Q1 CY24), while in rural it was 8.3% in Q2 CY24 (v/s 10.6% in Q1 CY24). โข Going forward, channel mix will shift dramatically in favour of e-commerce. The growth in e-commerce channel have aided the sector to drive strong growth in the urban sector. FMCG companies are focusing on digitisation for enabling smooth functioning of its supply and distribution channel. โข The premium segment continues to perform well than the mass segment. The volume growth of premium products is significantly ahead of mass products in the market. โข Governmentโs PLI (Production-linked incentive) scheme, with an outlay of โน10,900 cr, is likely to give companies a major opportunity to boost exports.
The toothpaste category in India is valued at ~โน18,000 cr, and comprises 70% of the total oral care segment. The per capita use of toothpaste remains low in India and this represents opportunity for category growth. โข In Q2 CY24, the FMCG industry reported value growth of 4% YoY. Volume growth was 3.8% YoY v/s 6.5% in the March quarter. โข The rural volume growth in the quarter stood at 5.2% while urban was at 2.8%. In Q1 CY24, rural volume growth stood at 7.6% and urban was at 5.7%. โข Price growth stabilized at 0.2%, indicating stable market environment. โข The non-foods, volume growth stood at 7.6% in the quarter ended June compared to 11.1% in the quarter ended March. โข During the quarter, the decline in consumer demand for Personal Care & Home Care categories was seen in both urban and rural markets. โข In urban markets, Personal Care categories witnessed volume growth of 5.2% in Q2 CY24 (v/s 9.7% in Q1 CY24), while in rural it was 8.3% in Q2 CY24 (v/s 10.6% in Q1 CY24). โข Going forward, channel mix will shift dramatically in favour of e-commerce. The growth in e-commerce channel have aided the sector to drive strong growth in the urban sector. FMCG companies are focusing on digitisation for enabling smooth functioning of its supply and distribution channel. โข The premium segment continues to perform well than the mass segment. The volume growth of premium products is significantly ahead of mass products in the market. โข Governmentโs PLI (Production-linked incentive) scheme, with an outlay of โน10,900 cr, is likely to give companies a major opportunity to boost exports.
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#MANAGEMENT #OUTLOOK
Thecompany is focusing on four pillars of growth: (i) lead the toothpaste category by growing the volume and the core category; (ii) driving premiumisation & innovation; (iii) drive category growth in toothbrushes & devices (iv) scaling the Palmolive brand to drive the personal care category, however, the near term focus will be its core category which is the bodywash. โข The toothpaste and toothbrush categories remains underpenetrated, which provides immense headroom for growth. โข Itsstrategy remains to drive premiumizationin both the toothpaste and toothbrush category with focus on innovation, strengthening leading position in the toothbrush segment, and diversification in personal care through the Palmolive brand. โข Going forward, it intends to double its oral beauty category by establishing beauty relevance and continuous focus on device led innovation. โข Thecompanybenefits from its large โessentialโ product portfolio and presence across the price-benefit pyramid. Thus, helping it to capture anyimpactof downtrading. โข It is looking to introduce products from its global portfolio, mainly in the skin cleansing segment, to the Indian market. โข The increased competitive intensity and slow category growth are the key challenges that management needs to tackle for a meaningfulrecovery.
Thecompany is focusing on four pillars of growth: (i) lead the toothpaste category by growing the volume and the core category; (ii) driving premiumisation & innovation; (iii) drive category growth in toothbrushes & devices (iv) scaling the Palmolive brand to drive the personal care category, however, the near term focus will be its core category which is the bodywash. โข The toothpaste and toothbrush categories remains underpenetrated, which provides immense headroom for growth. โข Itsstrategy remains to drive premiumizationin both the toothpaste and toothbrush category with focus on innovation, strengthening leading position in the toothbrush segment, and diversification in personal care through the Palmolive brand. โข Going forward, it intends to double its oral beauty category by establishing beauty relevance and continuous focus on device led innovation. โข Thecompanybenefits from its large โessentialโ product portfolio and presence across the price-benefit pyramid. Thus, helping it to capture anyimpactof downtrading. โข It is looking to introduce products from its global portfolio, mainly in the skin cleansing segment, to the Indian market. โข The increased competitive intensity and slow category growth are the key challenges that management needs to tackle for a meaningfulrecovery.
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Colpal 1900-2150
Expected level 2700
Support 1750
Expected level 2700
Support 1750
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Ambuja Cements Limited Company Details Report
Ambuja Cements Limited, part of the Adani Group, is among India's leading cement companies. Ambuja, with its subsidiary ACC Ltd has a cement capacity of 89 million tonne per annum (MTPA) and operate 102 ready mix concrete plants as on 31st March 2025. In FY25, they secured 6 new limestone mines with a total resource estimate of 976 MT, increasing total limestone reserve to 9 billion tonne (including Orient Cement). In April 2025, the company successfully completed the acquisition of Orient Cement Limited (8.5 MTPA), 2.4 MTPA expansion at Farakka and a 0.5 MTPA increase through de-bottlenecking increasing it's the total capacity to 100.3 MTPA. In a strategic move to expand its presence in the cement sector, Adani Group (through Endeavour Trade and Investment Ltd.) acquired 63.11% stake in Ambuja Cements Ltd (at a price of โน385 per share) and a 4.48% stake in ACC Ltd (at a price of โน2,300 per share), for a total consideration of approximately โน50,181 cr. Further, Ambuja Cements Ltd holds 50.05% stake in ACC Ltd. The acquisition was formally completed on 16th September 2022, marking Adani Groupโs significant entry into the Indian cement industry. Collectively known as Adani Cement, Ambuja & ACC along with its acquisitions operate 24 integrated plant and 22 grinding units in India. At the time of its acquisition in September 2022, Ambuja Cementโs consolidated cement manufacturing capacity was ~68 MTPA. Since then, the company has undertaken an aggressive expansion strategy, resulting in a ~50% increase in capacity over a span of ~30 months, as of April 2025. This substantial growth has been largely driven by inorganic expansions. These moves have significantly enhanced the companyโs scale, market reach, and operational footprint. Some of the significant acquisition have been as follows - Sanghi industries Limited (~6 MTPA cement capacity, ~6.6 MTPA clinker capacity and 1 billion tonne limestone reserve) in December 2023 at an enterprise value (EV) of โน5,000 cr, Asian Cement and Concrete (~2 MTPA) in January 2024 and Penna Cement in August 2024.
Ambuja Cements Limited, part of the Adani Group, is among India's leading cement companies. Ambuja, with its subsidiary ACC Ltd has a cement capacity of 89 million tonne per annum (MTPA) and operate 102 ready mix concrete plants as on 31st March 2025. In FY25, they secured 6 new limestone mines with a total resource estimate of 976 MT, increasing total limestone reserve to 9 billion tonne (including Orient Cement). In April 2025, the company successfully completed the acquisition of Orient Cement Limited (8.5 MTPA), 2.4 MTPA expansion at Farakka and a 0.5 MTPA increase through de-bottlenecking increasing it's the total capacity to 100.3 MTPA. In a strategic move to expand its presence in the cement sector, Adani Group (through Endeavour Trade and Investment Ltd.) acquired 63.11% stake in Ambuja Cements Ltd (at a price of โน385 per share) and a 4.48% stake in ACC Ltd (at a price of โน2,300 per share), for a total consideration of approximately โน50,181 cr. Further, Ambuja Cements Ltd holds 50.05% stake in ACC Ltd. The acquisition was formally completed on 16th September 2022, marking Adani Groupโs significant entry into the Indian cement industry. Collectively known as Adani Cement, Ambuja & ACC along with its acquisitions operate 24 integrated plant and 22 grinding units in India. At the time of its acquisition in September 2022, Ambuja Cementโs consolidated cement manufacturing capacity was ~68 MTPA. Since then, the company has undertaken an aggressive expansion strategy, resulting in a ~50% increase in capacity over a span of ~30 months, as of April 2025. This substantial growth has been largely driven by inorganic expansions. These moves have significantly enhanced the companyโs scale, market reach, and operational footprint. Some of the significant acquisition have been as follows - Sanghi industries Limited (~6 MTPA cement capacity, ~6.6 MTPA clinker capacity and 1 billion tonne limestone reserve) in December 2023 at an enterprise value (EV) of โน5,000 cr, Asian Cement and Concrete (~2 MTPA) in January 2024 and Penna Cement in August 2024.
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They acquired 100% shares of Penna Cement Industries for an EV of โน10,422 cr (fully funded through internal accruals). It includes 14 MTPA cement capacity, of which 4 MTPA cement capacity at Jodhpur IU and Krishnapatnam GU is under construction and is to be completed by the seller. Cost to complete the under-construction project is part of EV. In October 2024, Ambuja Cements announced the acquisition of a 46.8% stake in Orient Cement Limited (OCL) at an equity value of โน8,100 crore (โน395.4 per share), fully funded through internal accruals. The transaction triggered an open offer for an additional 26.0% stake from public shareholders, in accordance with regulatory requirements. Through this acquisition, Ambuja added 8.5 MTPA of operational cement capacity and 8.1 MTPA of ready-to-execute projects. OCL also owns a high-quality limestone mine in Chittorgarh, Rajasthan, capable of supporting an additional 6 MTPA of cement capacity in North India. OCL operates with 95 MW of captive power plant (CPP) capacity, 10 MW of waste heat recovery system (WHRS), and 13.5 MW of renewable power, with an additional 19.7 MW of renewable power currently under commissioning. Additionally, all of OCLโs plants are equipped with railway sidings, providing strong logistical advantages. Ambuja Cement Limited offers wide range of products, comprising Ordinary Portland Cement (OPC), Pozzolana Portland Cement (PPC), and Pozzolana Slag Cement (PSC), along with other sustainable and innovative building materials. To further add value to their customers, the company has launched innovative products like Ambuja Plus, Ambuja Cool Walls, Ambuja Kawach and Ambuja Compocem.
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#SALES #GROWTH
In FY25, revenue increased by 6% YoY to โน35,045 cr as. This was due to 10% YoY increase in volume to 65.2 MT and 4% YoY decline in cement realization to โน5,179 per tonne. Cement sales for the year increased by 6% YoY to โน33,768 cr. During the period under review, ready mix concrete (RMC) sales increased by 9% YoY to โน1,401 cr. Furthermore, in FY25 share of blended cement was 78% and premium products as a percentage of trade sales contributed 26%
In FY25, revenue increased by 6% YoY to โน35,045 cr as. This was due to 10% YoY increase in volume to 65.2 MT and 4% YoY decline in cement realization to โน5,179 per tonne. Cement sales for the year increased by 6% YoY to โน33,768 cr. During the period under review, ready mix concrete (RMC) sales increased by 9% YoY to โน1,401 cr. Furthermore, in FY25 share of blended cement was 78% and premium products as a percentage of trade sales contributed 26%
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#EBITDA #GROWTH
In FY25, EBITDA decreased by 7% YoY to โน5,971 cr. During the period gone by, overall cost of producing a ton of cement saw an improvement of 1% YoY. In FY25, other expenses increased on a YoY basis by 18% due to consolidation of Sanghi & Penna operations and increased consumption of spare parts due to overhauling and equipment upgradation work. Logistics cost per tonne for the period was โน1,273, a decline of 6% YoY and power & fuel cost was lower by 6% YoY to โน1,280 per tonne.
In FY25, EBITDA decreased by 7% YoY to โน5,971 cr. During the period gone by, overall cost of producing a ton of cement saw an improvement of 1% YoY. In FY25, other expenses increased on a YoY basis by 18% due to consolidation of Sanghi & Penna operations and increased consumption of spare parts due to overhauling and equipment upgradation work. Logistics cost per tonne for the period was โน1,273, a decline of 6% YoY and power & fuel cost was lower by 6% YoY to โน1,280 per tonne.
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#PAT #GROWTH
In FY25, PAT decreased by 9% YoY to โน5,145 cr. In the period under review, depreciation cost increased by 52% YoY and finance cost decreased by 22% YoY. During the year ended 31st March 2025, the company reassessed their tax positions based on favorable tax assessment orders. As a result, the company reversed various interest received and interest provisions. These amounts totaling to โน2,081 cr have been recorded as other income. For the period under review, other income increased by 128% YoY to โน2,654 cr. During the period, they incurred exceptional expense (net) of โน21 cr on account of various transactions.
In FY25, PAT decreased by 9% YoY to โน5,145 cr. In the period under review, depreciation cost increased by 52% YoY and finance cost decreased by 22% YoY. During the year ended 31st March 2025, the company reassessed their tax positions based on favorable tax assessment orders. As a result, the company reversed various interest received and interest provisions. These amounts totaling to โน2,081 cr have been recorded as other income. For the period under review, other income increased by 128% YoY to โน2,654 cr. During the period, they incurred exceptional expense (net) of โน21 cr on account of various transactions.
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#EBITDA #MARGIN
In FY25, EBITDA margin was 17%, a reduction of 226 bps YoY. The company consumed 28% energy from green and renewable power sources. Currently, WHRS capacity is ~218 MW. As a percentage of revenue raw material cost increased by 196 bps YoY to 18.6% and other expenses increased by 138 bps YoY to 12.8%. Employee cost decreased by 8 bps YoY to 4%, power & fuel cost decreased by 56 bps YoY to 3% and freight cost decreased by 44 bps YoY to 23.7%.
In FY25, EBITDA margin was 17%, a reduction of 226 bps YoY. The company consumed 28% energy from green and renewable power sources. Currently, WHRS capacity is ~218 MW. As a percentage of revenue raw material cost increased by 196 bps YoY to 18.6% and other expenses increased by 138 bps YoY to 12.8%. Employee cost decreased by 8 bps YoY to 4%, power & fuel cost decreased by 56 bps YoY to 3% and freight cost decreased by 44 bps YoY to 23.7%.
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#ROCE
In FY25, EBIT was โน6,138 cr, lower by 0.6% YoY and capital employed was higher by 27% YoY, leading to a reduction in ROCE to 13%.
In FY25, EBIT was โน6,138 cr, lower by 0.6% YoY and capital employed was higher by 27% YoY, leading to a reduction in ROCE to 13%.
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#ROE
In FY25, ROE was reported at 11.2%. During the year, net profit increased 9% YoY and net worth increased by 29% YoY.
In FY25, ROE was reported at 11.2%. During the year, net profit increased 9% YoY and net worth increased by 29% YoY.
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#COMPANY #POTENTIAL
โข India is the 2nd largest producer of cement, with an installed capacity of ~686 million ton (MT). Driven by sustained demand from the housing and infrastructure sectors, cement volumes reached 440-445 million MT in FY25. This growth is projected to continue, reaching 475-480 million MT in FY26. โข Indiaโs per capita cement consumption is 250 kg, far below Chinaโs 1,600 kg, offering substantial growth potential. Cement demand in India is expected to grow 1.2x to 1.5x of GDP. In FY26, Indiaโs GDP is envisaged to grow at ~6.5%. โข The Indian cement industry is set for significant growth, driven by infrastructure projects and urban development. Installed capacity is expected to reach 850 million tonne per annum (MTPA) by 2030 and 1,350 MTPA by 2050. In FY26, the industry is expected to add ~43-45 MTPA capacity. cement demand. cement demand. โข Indian cement sector is fragmented and regional industry - Adani Cement is a pan India player. Their current market share is ~15%, with a target of reaching 20% by FY28. โข The desire for homeownership, particularly in the post-pandemic era, is driving the growth of Indiaโs housing sector across both urban and rural areas. As the largest consumer of cement, the housing sector currently accounts for around 65% of the countryโs โข The Union Budget FY26 has allocated โน11.2 lakh cr for CAPEX, a 10% increase from the revised estimate of โน10.2 lakh cr FY25. The budget prioritizes infrastructure investment across key sectors. The infrastructure sector constitutes approximately 24% of total โข The company management envisages, industry supply to grow by 6% CAGR and demand to grow by ~7%-7.5% CAGR till FY30.
โข India is the 2nd largest producer of cement, with an installed capacity of ~686 million ton (MT). Driven by sustained demand from the housing and infrastructure sectors, cement volumes reached 440-445 million MT in FY25. This growth is projected to continue, reaching 475-480 million MT in FY26. โข Indiaโs per capita cement consumption is 250 kg, far below Chinaโs 1,600 kg, offering substantial growth potential. Cement demand in India is expected to grow 1.2x to 1.5x of GDP. In FY26, Indiaโs GDP is envisaged to grow at ~6.5%. โข The Indian cement industry is set for significant growth, driven by infrastructure projects and urban development. Installed capacity is expected to reach 850 million tonne per annum (MTPA) by 2030 and 1,350 MTPA by 2050. In FY26, the industry is expected to add ~43-45 MTPA capacity. cement demand. cement demand. โข Indian cement sector is fragmented and regional industry - Adani Cement is a pan India player. Their current market share is ~15%, with a target of reaching 20% by FY28. โข The desire for homeownership, particularly in the post-pandemic era, is driving the growth of Indiaโs housing sector across both urban and rural areas. As the largest consumer of cement, the housing sector currently accounts for around 65% of the countryโs โข The Union Budget FY26 has allocated โน11.2 lakh cr for CAPEX, a 10% increase from the revised estimate of โน10.2 lakh cr FY25. The budget prioritizes infrastructure investment across key sectors. The infrastructure sector constitutes approximately 24% of total โข The company management envisages, industry supply to grow by 6% CAGR and demand to grow by ~7%-7.5% CAGR till FY30.
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#COMPANY #OUTLOOK
โข They have ordered 11 General Purpose Wagon Inward System (GPWIS) rakes, of which 11 have been delivered and running in approved circuit. These rakes will enable cost-efficient clinker movement from mother plants to the clinker grinding units. In addition to these, they have also ordered 26 Bulk Cement Freight Consortium (BCFC) rakes for safe and cost-efficient transportation of fly ash from thermal power plants to their facilities. Of these 26 BCFC rakes, 8 rakes have been delivered in FY25. โข The Company aims to optimize lead distances by ~100 kms going forward, thereby improving overall logistics efficiency. In addition, it is targeting a modal shift in logistics, with 10% of cement transportation to be undertaken via sea routes by FY28. Marine to transport cement and clinker. logistics presents significant cost advantages, with estimated savings of ~30% compared to rail and ~60% compared to road transport on a per tonne per km basis. They currently have a fleet size of 14 dedicated sea vessels which enables them to dispatch 3 MT of cement annually, while operating across 11 strategically located terminals. The Company plans to add 10 more sea vessels โข The management aims 60% of their future cement capacity and 83% of clinker operations to be powered by green energy. Currently, 218 MW of Waste Heat Recovery Systems (WHRS), 200 MW of solar capacity, and 99 MW of wind energy from their Khavda facility is operational. Out of the remaining 707 MW of solar and wind power, 70% projects are slated for completion by June 2025, and the balance by December 2026. These investments are expected to reduce power costs by approximately โน90 per tonne by FY28. โข Consolidated capacity stood at 89 MTPA as on 31st March 2025 and ~100 MPTA as on April 2024 (acquisition of Orient Cement in (8.5 MTPA), the 2.4 MTPA expansion at Farakka, and a 0.5 MTPA through de-bottlenecking). The company is actively pursuing a major capacity expansion initiative of 19 MTPA across various regions, setting a clear roadmap to achieve 118 MTPA by FY26. Growth in the current fiscal would be largely driven by organic expansions.
โข They have ordered 11 General Purpose Wagon Inward System (GPWIS) rakes, of which 11 have been delivered and running in approved circuit. These rakes will enable cost-efficient clinker movement from mother plants to the clinker grinding units. In addition to these, they have also ordered 26 Bulk Cement Freight Consortium (BCFC) rakes for safe and cost-efficient transportation of fly ash from thermal power plants to their facilities. Of these 26 BCFC rakes, 8 rakes have been delivered in FY25. โข The Company aims to optimize lead distances by ~100 kms going forward, thereby improving overall logistics efficiency. In addition, it is targeting a modal shift in logistics, with 10% of cement transportation to be undertaken via sea routes by FY28. Marine to transport cement and clinker. logistics presents significant cost advantages, with estimated savings of ~30% compared to rail and ~60% compared to road transport on a per tonne per km basis. They currently have a fleet size of 14 dedicated sea vessels which enables them to dispatch 3 MT of cement annually, while operating across 11 strategically located terminals. The Company plans to add 10 more sea vessels โข The management aims 60% of their future cement capacity and 83% of clinker operations to be powered by green energy. Currently, 218 MW of Waste Heat Recovery Systems (WHRS), 200 MW of solar capacity, and 99 MW of wind energy from their Khavda facility is operational. Out of the remaining 707 MW of solar and wind power, 70% projects are slated for completion by June 2025, and the balance by December 2026. These investments are expected to reduce power costs by approximately โน90 per tonne by FY28. โข Consolidated capacity stood at 89 MTPA as on 31st March 2025 and ~100 MPTA as on April 2024 (acquisition of Orient Cement in (8.5 MTPA), the 2.4 MTPA expansion at Farakka, and a 0.5 MTPA through de-bottlenecking). The company is actively pursuing a major capacity expansion initiative of 19 MTPA across various regions, setting a clear roadmap to achieve 118 MTPA by FY26. Growth in the current fiscal would be largely driven by organic expansions.
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Ambuja Cements 450-525
Expected level 670
Support 404
Expected level 670
Support 404
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