Ambuja Cements shares in focus after Q1 PAT jumps 24% YoY, Motilal Oswal raises target price

Ambuja Cements shares are likely to be in the spotlight on Friday, August 1, after the Adani Group company reported a strong 24% year-on-year (YoY) rise in net profit for the first quarter ended June 2025. The company posted a net profit of Rs 970 crore, up from Rs 783 crore in the same period last year, driven by improved operating metrics and a sharp surge in revenue.

Revenue from operations also registered a significant 23% YoY growth, coming in at Rs 10,244 crore for Q1FY26, compared to Rs 8,292 crore in Q1FY25. However, on a sequential basis, the company's profit after tax (PAT) declined 24% from Rs 1,282 crore reported in the previous quarter.

Following the Q1 results, domestic brokerage firm Motilal Oswal Financial Services raised its target price for the stock to Rs 730 from Rs 700, while maintaining a ‘Buy’ rating.


Motilal Oswal noted that Ambuja's EBITDA exceeded estimates on the back of robust demand and favorable pricing. Industry-wide cement demand is now projected to grow at 7–8% in FY26, up from the earlier 6–7% range. Consolidated volumes for the company jumped 20% YoY, with per-tonne realization up 2% YoY.

Key drivers for future performance include improving profitability trends, execution of organic expansion plans, and realization of group-level synergies.

The brokerage projects a consolidated revenue/EBITDA/PAT CAGR of ~15%/29%/31% over FY25–FY27. EBITDA per tonne is expected to improve significantly to Rs 1,014 in FY26, Rs 1,150 in FY27, and Rs 1,230 in FY28, up from Rs 794 in FY25.

Valuation-wise, the stock is trading at 21x/17x FY26E/FY27E EV/EBITDA and at USD 158/USD 151 EV per tonne, suggesting room for further upside.

On Thursday, Ambuja Cements shares ended 4.11% lower at Rs 593 on BSE.

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(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)