Orient Cement (ORIENTCEM) Q3 25/26 earnings summary

Executive summary

• Achieved industry-leading volume growth at 2x the industry average, with consolidated cement volume of 53.8 MTPA for 9MFY'26, up 19% YoY, and revenue rising 17% to Rs 29,740 Cr; premium cement volumes rose 31% YoY, now 35% of trade sales.

• Amalgamation of ACC and Orient Cement with Ambuja Cements underway, creating a unified platform to enhance scale, synergies, and market leadership; Ambuja acquired majority control of a subsidiary, holding 72.66% equity as of June 18, 2025.

• Capacity utilization for acquired assets improved to 58% (up from 37% YoY), with December exit at 65% and a target of 80%; Sanghi clinker at 80% and cement at 65% in December.

• Strong demand driven by infrastructure, housing, and rural construction recovery; industry demand growth expected at 8% for FY 2026.

• Ambuja Cements Limited became majority owner of a subsidiary as of April 22, 2025, following a significant share acquisition and open offer.

Financial highlights

• Highest ever quarterly sales volume at 18.9 million tons, up 17% YoY; quarterly revenue reached INR 10,277 crores, up 20% YoY, with a INR 5 per bag improvement in realizations.

• PAT for the quarter was INR 328 crores, up 58% YoY (adjusted for exceptional items); normalized PAT for 9MFY'26 at Rs 1,984 Cr (+42% YoY).

• Operating EBITDA was INR 1,353 crores, up 53% YoY (excluding one-off items); Q3FY'26 EBITDA per tonne at Rs 718, up 31% YoY.

• Diluted EPS for the quarter was INR 0.82; 9MFY'26 EPS (diluted) at 11.36 (down 15% YoY due to normalization of one-time items).

• Cash and cash equivalents at Rs 1,512 Cr as of Dec'25, after major acquisitions.

Outlook and guidance

• Targeting cost reduction to INR 3,800 per ton by March 2027 and INR 3,650 by March 2028; aiming for Rs 1,500 EBITDA per tonne by Mar'28.

• Capacity to reach 115 million tons by March 2026 and 155 million tons by March 2028, with ongoing organic and inorganic growth.

• Double-digit volume and revenue growth expected to continue, with a focus on premium and blended cement.

• Green power share to reach 60% by Mar'28, supporting sustainability and cost efficiency.

• The company continues to monitor regulatory developments, especially regarding new Labour Codes and the proposed Scheme of Amalgamation.