In the latest quarter (Q2 of FY26) ending September 2025, Ambuja Cement reported a huge net profit. It has shot up by 389% compared to the same time last year (YoY). In the same quarter last year, the company reported Rs. 470 crore as compared to Rs. 2,297 crore this quarter.
It is a very welcome jump for stock investors. But I wanted to know what has caused such a huge flip in its financial results?
I’ve looked into their recent filing and have found the cause.
Revenue and Profits on the Move
First off, let’s look at the basics.
Ambuja’s revenue from operations climbed 22% year-over-year to Rs. 9,174 crore. That’s solid growth, especially in a sector where construction demand can be very cyclical.
But compared to the previous quarter (Q1 FY26), it dipped about 11% to Rs. 10,289 crore. It is nothing alarming because in contruction business demands can get volatile.
EBITDA earnings rose 35% to Rs. 1,794 crore, with margins holding steady around 19.6%.
The result is not bad, but it is still not so good that it can cause the that profit explosion of 389%.
| Description | Q2 FY26 (Sep 2025) | Q1 FY26 (Jun 2025) | Q2 FY25 (Sep 2024) | QoQ Change (%) | YoY Change (%) |
| Revenue 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% |
| Net Profit (PAT) | 2,297 | 965 | 470 | 137.50% | 388.72% |
| EPS (Diluted) | 7.15 | 3.2 | 1.85 | 123.40% | 286.49% |
So, revenue and EBITDA are up nicely, but net profit? It’s in another league. What’s the secret behind tha jump?
A Massive Tax Reversal
The jump in profit is not because of elevated sales or improved margins. It is caused by a one-time tax credit.
Ambuja booked a huge Rs. 1,464 crore reversal on income tax provisions. It is like getting a huge refund check from the income tax department.
This is a one-time gain. It is not from everyday operations. We can say that it is just a accounting cleanup that has evevated the net profit so much.
Without this, the profit growth would still be high than Q2 Sep’24 quarter, but nowhere near 389%. The net profit before tax would’ve been way lower.
| Description | Sep’25 | Jun’25 | Sep’24 | Note |
| Net Profit | 2297 | 965 | 470 | – |
| Tax | -1,464 | 362 | 239 | Rs. 1464 Cr tax revsersal in Sep’25 Quarter |
| Interest | 76 | 67 | 66 | – |
| Depreciation | 885 | 861 | 551 | – |
| EBITDA | 1794 | 2255 | 1326 | – |
Other Details
Ambuja Cements reported a 16.6 million tonnes of cement sales. This is up 20% from last year. It was the highest Q2 ever for them. Demand from infrastructure and housing projects is picking up, and they outpaced the industry average.
Pricing power is also helping Ambuja Cements. Better realization per tonne meant more cash from each bag of cement sold. EBITDA per tonne jumped 32% to Rs. 1,060. The company’s operations is getting more efficient. Costs like power and fuel have held steady.
From the trends I’ve seen in their quarterly charts, this builds on steady gains over the past couple of years. Revenue’s been climbing since mid-2023, and margins have firmed up as they optimize their massive capacity (they’re part of the Adani empire, after all, with big expansion plans).
Conclusion
When net profit leaps from Rs. 470 crore to Rs. 2,297 crore in a year, it does not look natural.
In Ambuja Cements, this net profit jump was turbocharged by Rs. 1,464 crore tax reversal. Without it, profits still would’ve climbed, but surely not by so much (389%).
