Within the newest quarter (Q2 of FY26) ending September 2025, Ambuja Cement reported an enormous internet revenue. It has shot up by 389% in comparison with the identical time final 12 months (YoY). In the identical quarter final 12 months, the corporate reported Rs. 470 crore as in comparison with Rs. 2,297 crore this quarter.
It’s a very welcome leap for inventory traders. However I needed to know what has triggered such an enormous flip in its monetary outcomes?
I’ve regarded into their current submitting and have discovered the trigger.
Income and Income on the Transfer
First off, let’s take a look at the fundamentals.
Ambuja’s income from operations climbed 22% year-over-year to Rs. 9,174 crore. That’s strong development, particularly in a sector the place development demand will be very cyclical.
However in comparison with the earlier quarter (Q1 FY26), it dipped about 11% to Rs. 10,289 crore. It’s nothing alarming as a result of in contruction enterprise calls for can get unstable.
EBITDA earnings rose 35% to Rs. 1,794 crore, with margins holding regular round 19.6%.
The outcome is just not dangerous, however it’s nonetheless not so good that it might trigger the that revenue explosion of 389%.
| Description | Q2 FY26 (Sep 2025) | Q1 FY26 (Jun 2025) | Q2 FY25 (Sep 2024) | QoQ Change (%) | YoY Change (%) |
| Income from Operations | 9,174 | 10,289 | 7,516 | -10.80% | 22.06% |
| EBITDA | 1,794 | 2,255 | 1,326 | -10.20% | 35.29% |
| EBITDA Margin | 19.56% | 21.92% | 17.64% | 0.10% | 10.84% |
| Web Revenue (PAT) | 2,297 | 965 | 470 | 137.50% | 388.72% |
| EPS (Diluted) | 7.15 | 3.2 | 1.85 | 123.40% | 286.49% |
So, income and EBITDA are up properly, however internet revenue? It’s in one other league. What’s the key behind tha leap?
A Large Tax Reversal
The leap in revenue is just not due to elevated gross sales or improved margins. It’s attributable to a one-time tax credit score.
Ambuja booked an enormous Rs. 1,464 crore reversal on earnings tax provisions. It’s like getting an enormous refund test from the earnings tax division.
It is a one-time acquire. It isn’t from on a regular basis operations. We will say that it’s only a accounting cleanup that has evevated the web revenue a lot.
With out this, the revenue development would nonetheless be excessive than Q2 Sep’24 quarter, however nowhere close to 389%. The online revenue earlier than tax would’ve been approach decrease.
| Description | Sep’25 | Jun’25 | Sep’24 | Word |
| Web Revenue | 2297 | 965 | 470 | – |
| Tax | -1,464 | 362 | 239 | Rs. 1464 Cr tax revsersal in Sep’25 Quarter |
| Curiosity | 76 | 67 | 66 | – |
| Depreciation | 885 | 861 | 551 | – |
| EBITDA | 1794 | 2255 | 1326 | – |
Different Particulars
Ambuja Cements reported a 16.6 million tonnes of cement gross sales. That is up 20% from final 12 months. It was the very best Q2 ever for them. Demand from infrastructure and housing tasks is selecting up, they usually outpaced the business common.
Pricing energy can also be serving to Ambuja Cements. Higher realization per tonne meant more money from every bag of cement bought. EBITDA per tonne jumped 32% to Rs. 1,060. The corporate’s operations is getting extra environment friendly. Prices like energy and gas have held regular.
From the traits I’ve seen of their quarterly charts, this builds on regular features over the previous couple of years. Income’s been climbing since mid-2023, and margins have firmed up as they optimize their large capability (they’re a part of the Adani empire, in spite of everything, with huge growth plans).
Conclusion
When internet revenue leaps from Rs. 470 crore to Rs. 2,297 crore in a 12 months, it doesn’t look pure.
In Ambuja Cements, this internet revenue leap was turbocharged by Rs. 1,464 crore tax reversal. With out it, income nonetheless would’ve climbed, however certainly not by a lot (389%).
