Ambuja vs Ultratech: What Are the Brokerages Telling About the Cement Stocks Post Q3 Results?

Synopsis: Ambuja and UltraTech announced Q3FY26 results, where one saw 27 percent YoY net profit growth while the other reported a decline. Brokerages still highlight upon EBITDA margin expansion, cost optimization, and capacity expansion plans driving long-term growth prospects.

India’s cement industry is the world’s second largest, with installed capacity exceeding 700 million tonnes per annum and in FY23 the annual production crossed 390 million tonnes. Driven by infrastructure spending, housing demand, and urbanization, the sector is expected to grow at 7- 8 percent CAGR, supported by government-led capital expenditure and real estate recovery.

Ambuja Cement and UltraTech Cement are among the biggest and most influential players in the Indian cement industry. UltraTech, India’s largest producer, benefits from scale, strong distribution, and operational efficiency, while Ambuja, part of the Adani Group, is expanding aggressively through capacity additions, acquisitions, and cost optimization strategies.

Q3FY26 Result

In the latest quarterly result Ambuja Cements Ltd has seen its revenue from operations increase by 9 percent YoY, from Rs 9,411 Cr in Q3FY25 to Rs 10,277 Cr in Q3FY26, while the QoQ increased by 12 percent from Rs 9,174 Cr. The net profits fell by 86 percent, from Rs 2,663 Cr in Q3FY25 to Rs 367 Cr in Q3FY26, while the QoQ decreased by 84 percent from Q2FY26’s Rs 2,302 Cr.

In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 23 percent YoY, from Rs 24,094 Cr in 9MFY25 to Rs 29,554 Cr in 9MFY26. The net profits for the same period fell by 6 percent from Rs 3942 Cr to Rs 3686 Cr.

On the other hand, in the latest quarterly result, UltraTech Cement Ltd has seen its revenue from operations increase by 23 percent YoY, from Rs 17,779 Cr in Q3FY25 to Rs 21,830 Cr in Q3FY26, while the QoQ increased by 11 percent from Rs 19,607 Cr. The net profits grew by 27 percent going from Rs 1,363 Cr in Q3FY25 to Rs 1,729 Cr in Q3FY26, while the QoQ increased by 40 percent from Q2FY26’s Rs 1,238 Cr.

In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 18 percent YoY, from Rs 52,891 Cr in 9MFY25 to Rs 62,712 Cr in 9MFY26. The net profits for the same period grew by 45 percent going from Rs 3,564 Cr to Rs 5,188 Cr.

Brokerage Commentary

Ambuja Cement

ICICI Securities highlights that Ambuja Cement is driving premium product sales to 35 percent of trade volumes, recording 31 percent YoY growth and supporting a 5 percent YoY rise in realizations. Power costs for Ambuja Cement are expected to decline to Rs 4.5 per unit by FY28 from Rs 6.1 through higher green energy usage of 60 percent and WHRS expansion.

Motilal Oswal outlines Ambuja Cement’s capacity expansion to 115 MTPA by FY26E exit, 130- 132 MTPA by FY27E, and 155 MTPA by FY28E through debottlenecking and grinding expansions. Utilization of Ambuja Cement’s acquired assets improved sharply to 65 percent in Dec’25 from 37 percent YoY, reflecting strong integration progress.

Axis Securities notes that sector consolidation is benefiting Ambuja Cement, raising large players’ market share to 65- 70 percent by FY27- 28 and improving pricing discipline. Ambuja Cement is targeting production costs of Rs 3,650 per tonne and EBITDA of Rs 1,500 per tonne by FY28, supporting margin expansion to 20- 21 percent by FY27E.

Ultratech Cement

Motilal Oswal highlights UltraTech Cement’s integration progress at Kesoram with 69 percent brand conversion and ICEM at 58 percent, with cost capex benefits expected from 4QFY27. UltraTech Cement reduced lead distance by 13 km YoY to 363 km and expects utilization to exceed 90 percent in 4QFY26 amid strong infrastructure demand.

ICICI Securities projects UltraTech Cement’s capacity expansion to 241 MTPA by FY28E, including 27 MTPA additions during FY26- 27E. UltraTech Cement is expected to deliver a 12 percent volume CAGR during FY25- 28E, outperforming the industry, supported by targeted cost savings of Rs 300 per tonne over the next two to three years.

Geojit highlights UltraTech Cement’s Building Solutions network of 5,290 outlets contributing over 20 percent of trade volume, alongside RMC expansion across 163 cities. UltraTech Cement reported a 4 percent decline in cost per tonne to Rs 1,135, a 15 percent YoY fall in power cost to Rs 349 per tonne, and improved utilization to 77 percent from 72 percent.

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