Orient Cement FY25 Report: Revenue Down 15% to Rs 2,728.70 Cr, Profit at Rs 91.25 Cr

Building Tomorrow, Sustainably: Orient Cement’s Transformative Year Underpins Long-Term Vision

NEW DELHI (India CSR): In a year marked by significant economic shifts and a landmark acquisition, Orient Cement Limited (OCL) demonstrated a strategic pivot towards enhanced operational excellence and sustainable growth, despite facing a challenging market environment in the Financial Year 2025. While the company’s financial performance reflected the broader industry pressures, its integration into the Adani Group and a steadfast commitment to efficiency, innovation, and community welfare are setting the stage for a resilient and expanded future. This comprehensive analysis delves into OCL’s financial outcomes, strategic initiatives, and commitment to sustainability, drawing on its latest annual report to offer a detailed perspective on its journey.

Orient Cement’s FY 2025 Highlights:

A Challenging Yet Transformative Financial Year

Orient Cement Limited reported a total income of Rs 2,728.70 crore for FY 2024-25, a notable decline of 15% compared to Rs 3,200.61 crore in the previous financial year. This downturn was primarily driven by a 12% year-on-year degrowth in total sales volume, which stood at 54 lakh metric tonnes for the year, down from 61 lakh metric tonnes in FY 2023-24. The retail segment, in particular, experienced a subdued demand environment.

The net profit (Profit After Tax) for FY 2024-25 also saw a significant reduction, settling at Rs 91.25 crore, compared to Rs 174.85 crore in FY 2023-24, representing approximately a 47.8% decrease. The company’s EBITDA (Earnings Before Interest, Depreciation, Amortisation, and Taxation) mirrored this trend, declining by 31% to Rs 321.19 crore from Rs 464.75 crore in the preceding year. These financial pressures were largely attributed to a confluence of factors, including the slowdown in commercial activities due to General and Maharashtra assembly elections, extreme weather conditions, and a liquidity crunch in OCL’s core markets, leading to cement prices hitting a decadal low in some regions.

However, even amidst these challenges, OCL’s strategic focus on operational efficiency, prudent financial management, and leveraging alternative fuels helped to partially mitigate the adverse impacts on its profitability. The company maintained a capacity utilisation of 64% for the full year.

The Ambuja Cements Acquisition: A Game-Changer

A pivotal moment for Orient Cement Limited in FY 2024-25 was its acquisition by Ambuja Cements Limited, an Adani Group company, in April 2025. This strategic move saw Ambuja acquiring a 46.66% stake in OCL. The acquisition is poised to significantly enhance Adani Cement’s presence in core markets and improve its pan-India market share by 2%. It adds an impressive 16.6 MTPA (million tonnes per annum) of cement capacity to Ambuja’s portfolio, with 8.5 MTPA already operational and 8.1 MTPA ready to execute. This accelerates Ambuja’s journey towards surpassing 100 MTPA operational capacity and moving closer to its 140 MTPA goal by 2028.

The Chairman of Orient Cement, Vinod Bahety, highlighted this acquisition as a “transformative moment,” representing “the convergence of legacies, values and aspirations”. The integration aims to combine collective strengths to “carve new pathways of growth, sustainability, and innovation”.

OCL’s existing efficient operations, supported by a 95 MW captive power plant, a 10 MW Waste Heat Recovery System (WHRS), and 33 MW of renewable energy, bring immense value to Ambuja Cements’ footprint. This synergy is expected to reduce lead distances, cut logistics costs, and expand market share. Furthermore, OCL’s significant limestone mining lease in Chittorgarh unlocks an additional 6 MTPA potential in North India, securing a steady supply of high-quality raw materials and strengthening the resource base. The acquisition enables Ambuja to optimize capacity utilization, enhance operational performance, and build enduring value for all stakeholders, while for OCL, it heralds “new opportunities for innovation, operational excellence and greater market presence across key Indian geographies”.

A critical first step following the acquisition has been the execution of a Master Supply Agreement and Master Service Agreement (MSA) with Ambuja and ACC. Under these agreements, OCL will source clinker and cement in bulk, which will then be marketed under the trusted Ambuja and ACC brands. This arrangement is expected to improve OCL’s financials, benefiting stakeholders including creditors, governments, shareholders, and employees. Integration initiatives, including de-bottlenecking and efficiency improvements, are already underway to boost OCL’s profitability in the near future. The Adani Group’s extensive infrastructure and capabilities across energy, logistics, mining, and digital technologies (such as AI) will provide significant operational efficiencies, margin expansion, and long-term value creation through shared infrastructure, unified cash management systems, and common digital platforms.

Core Business Segments and Product Portfolio

Orient Cement’s primary business activity is Clinker and Cement Manufacturing, which accounted for 99.82% of its total turnover in FY 2024-25. The company operates modern cement manufacturing plants and a dedicated clinker grinding unit. Its strategic footprint covers key markets including Maharashtra, Karnataka, Telangana, Andhra Pradesh, Madhya Pradesh, and South Gujarat.

OCL’s product portfolio is meticulously tailored to various construction needs, emphasizing durability, sustainability, and value. Key offerings include:

• Water-repellent Cement (Birla.A1 Dolphin): A super-premium, all-weather product with low permeability, significantly reducing water and air infiltration into concrete, thus preventing rusting of steel reinforcements for longer durability compared to conventional cement. Its special qualities have earned strong customer appreciation since its launch.
• Strong Cement (Birla.A1 StrongCrete): Expertly designed for concrete applications like foundations, beams, columns, and slabs, this product leverages innovative OptiMix18™ technology for robust strength and resilience, ensuring long-lasting structures. A 30-day radio campaign was conducted to strengthen its brand awareness. An on-site One-Day Strength Demonstration campaign conducted over 400 demonstrations, engaging more than 6,000 stakeholders and positively impacting market perception.
• Green Cement (Birla.A1 OrientGreen): This product has received ‘GreenPro accreditation’ from the CII – Green Products and Services Council, aligning with the company’s objective of creating sustainable ecosystems. It enhances concrete quality by reducing pores and increasing density, hindering chloride transport and corrosion. Its formulation requires less water, creating denser concrete and preventing seepage. The cement’s tamper-proof and water-resistant LPP packaging ensures protection and extended shelf life. A “Green Day” campaign was launched to promote the brand, involving tree plantation drives, drawing competitions, and market engagements.
• OPC 43 Grade (formerly Orient 43 Grade Cement): A cornerstone product delivering a minimum compressive strength of 43 MPa after 28 days of curing, known for its quality and reliability.
• OPC 53 Grade (formerly Orient Gold, now Premium Cement – OPC 53 Grade): Revolutionized building construction with its introduction in 1992, achieving a compressive strength of at least 53 MPa after 28 days of curing. Its high initial strength leads to economical construction by saving cement consumption and time.

The company’s strategy of focusing on premium products and best-in-class quality has yielded positive results. The proportion of premium products sold in the trade segment increased from 21% in FY 2023-24 to 25% in FY 2024-25. However, blended cement sales accounted for 53% in FY 2024-25, a slight decrease from 55% in the prior year, with lower B2C demand for blended cement leading to a higher ratio of Ordinary Portland Cement (OPC) production, which impacted production costs.

Operational and Environmental Sustainability

OCL’s commitment to sustainability is deeply integrated into its operations. The company aims to achieve a 25% Thermal Substitution Rate (TSR) and source 50% of its total energy from renewable sources and WHRS by 2030. In FY 2024-25, green energy (Renewable + WHRS) accounted for 17.50% of the company’s total energy mix.

Key initiatives in this regard include:

• Waste Heat Recovery Systems (WHRS): The second phase of the WHRS at the Chittapur plant was commissioned in FY 2024-25, operating at full capacity. This system generated 56,211 MW units, meeting 17% of the company’s total energy needs and reducing greenhouse gas (GHG) emissions by 95,558 tonnes. The proposed expansion of WHRS is underway at OCL’s plants.
• Solar Power: An additional 3.7 MW of solar power capacity was added for the Jalgaon plant under a group captive scheme, resulting in the plant consuming more than 70% of its energy from green sources. Overall, renewable and green power consumption increased to 40% from 17% year-on-year.
• Alternative Fuels and Raw Materials (AFR): OCL significantly increased its use of alternative fuels. AFR consumption increased to 17% TSR from 12% last year in cement manufacturing, and to 20% TSR in its captive power plants (from 6% last year). The company has expanded its alternative fuel portfolio to include plastic waste, paper cups, cow dung, and cloth waste, co-processing these materials at its integrated plants. Infrastructure for co-processing RDF/MSW waste has also been established at the Devapur plant.
• Fly Ash Utilisation: A new fly ash rake handling facility at the Chittapur plant, along with a leased fly-ash rake, has improved sourcing flexibility, reduced costs, and minimized road traffic and pollution. The company fully integrates fly ash from its captive power plant into the cement production process.
• Zero Liquid Discharge (ZLD): OCL upholds rigorous water stewardship, achieving Zero Liquid Discharge across all sites to safeguard water bodies and habitats. Wastewater from Captive Power Plant operations is treated and reused for dust suppression and green spaces.
• Emissions Reduction: The company strictly complies with environmental guidelines, with no significant notices or penalties in FY 2024-25. Efforts to reduce CO2 emissions include improving thermal and electrical energy use, clinker factor, renewable energy reliance, digitalization, bulk transport, biofuels, and electric vehicles. Scope 1, 2, and 3 emissions for FY 2024-25 have been independently assured by TUV India Private Limited.
• Biodiversity Initiatives: OCL recognizes the impact of mining operations on biodiversity and actively works with local forest authorities, planting approximately 26,400 saplings in FY 2024-25 with an impressive 92% survival rate.
• Circular Economy: The company co-processed 1.2 lakh metric tonnes of waste (including plastic material) in kilns and used 4,168 metric tonnes of waste in its CPP, achieving an 18% TSR and conserving approximately 1.47 lakh metric tonnes of Indian coal.

Marketing, Branding, and Customer Engagement

Orient Cement has been proactive in strengthening its brand positioning and market presence. Its premium products, including ‘Birla.A1 StrongCrete,’ ‘Birla.A1 OrientGreen,’ and ‘Birla.A1 Dolphin,’ continue to lead the market. Marketing initiatives include:

• Digital Marketing Expansion: A strategic push to increase digital marketing activities, including social media engagement, performance marketing, and influencer collaborations, aiming to boost brand recall. The Strong Cement campaign, “No Compromise on Home Building,” achieved a total reach of over 11 million across YouTube and Facebook, generating 55 million impressions on Facebook alone.
• Awards and Recognition: OCL received the “Green Concrete Initiative of the Year” award at the World of Concrete India Awards 2024. It was also recognized as one of India’s Top 500 Value Creators by Dun & Bradstreet and named the 3rd Fastest Growing mid-size Cement Company (2024–25) at the 8th Indian Cement Review Awards. The company also won “Best Digital Strategy Delivering Business Value (Cement Manufacturing)” award at the 7th Edition Technology Excellence Awards 2025.
• Customer-Centric Services: The “Concrete Xpert Bike Engineer” service was introduced across selected regions to provide on-site assistance by skilled engineers, expanding coverage to 70 additional units. The ‘We Care’ program also enhanced the well-being of channel partners, strengthening the company’s identity. OCL regularly conducts consumer surveys to assess customer satisfaction.

Investing in People and Community

Orient Cement continues to prioritize its workforce and the communities it operates within. The company achieved a remarkable “Zero fatality” record for seven consecutive years. Its operations are ISO 45001 certified for Occupational Health and Safety Management.

OCL’s commitment to its employees has been recognized nationally:

• Ranked 50th in the top 100 Best Companies to Work For – 2024 by Great Place to Work® Certified™.
• Featured in the Top 25 India’s Best Workplaces in Manufacturing – 2024, India’s Best Workplaces™ in Cement & Building Materials 2024, Top 50 India’s Best Workplaces™ for Millennials 2024, and Top 25 India’s Best Workplaces™ in Manufacturing 2025, and Top 50 India’s Best Workplaces™ Building a Culture of Innovation by All 2025.

Employee engagement is central to OCL’s culture, with initiatives like “Coffee with Leaders” chats, “Samvaad” sessions, and Town Halls promoting open dialogue and transparency, especially after the Adani Group integration. The company’s HR policies focus on talent and leadership development, internal mobility, and skills enhancement through programs like LEAP and LEAD. OCL increased its diversity hiring by 120% compared to the previous year, reinforcing its commitment to an inclusive workforce.

Through its Corporate Social Responsibility (CSR) initiatives, OCL spent Rs 5.76 crore in FY 2024-25, contributing to the holistic development of communities. These initiatives focus on:

• Health and Wellness: Renovation of government hospitals, free medical camps, nutrition-focused camps for schoolchildren, and blood donation drives.
• Rural Development: Construction of community halls, borewells, roads, and a market yard for local vendors. Year-long food supplies to ashrams in Devapur were also provided.
• Quality Education: Running a CBSE-accredited school in Devapur with modern infrastructure, supporting a government girls’ high school and hostel in Chittapur, equipping primary schools with LCD projectors, and improving hygiene facilities. The New India Literacy Programme benefited over 3,600 women in Devapur, enhancing craft skills and literacy.

Financial Resilience and Prudent Management

Despite the decline in revenue and profit, Orient Cement demonstrated financial resilience through several key indicators:

• Debt-to-Equity Ratio: Significantly improved to 0.02 in FY 2024-25 from 0.07 in FY 2023-24, indicating effective debt repayment through internally generated funds. The balance sheet is now nearly net debt-free.
• Interest Coverage Ratio: Improved to 50.49 in FY 2024-25 from 31.43 in FY 2023-24, also due to debt repayment.
• Working Capital Management: Successfully managed working capital despite increased B2B sales (involving longer credit periods) and petcoke imports.

While the Operating Profit Margin and Net Profit Margin saw declines (11.86% from 14.59% and 3.32% from 5.47% respectively), these were partially offset by the focus on renewable power, AFR usage, operational efficiency, and digital tools. The company’s efforts in cost optimization and efficient resource mobilization, including exploring new suppliers and enhancing rail transportation for cement, further contributed to managing expenses.

Outlook: Forging a Stronger Future Together

Looking ahead, Orient Cement is strategically positioned to capitalize on India’s robust economic trajectory, driven by surging construction activities and infrastructure development. The Government’s increased capital allocation in the Union Budget 2025-26 (Rs 11.21 lakh crore) and investments in flagship initiatives like Pradhan Mantri Awas Yojana are expected to catalyze cement demand. The Indian cement industry is projected to grow at 6.5% in FY 2025-26, with sustained demand from housing and infrastructure sectors.

As part of the Adani Group, OCL is poised to leverage Group synergies, an enhanced distribution network, an enriched product portfolio, and advanced technological capabilities to contribute meaningfully to India’s infrastructure-led development. The company’s cultural transformation through the values of RESQ (Reliability, Environment, Safety, and Quality) will guide its operational integrity, stakeholder trust, and sustainable outcomes. Orient Cement remains committed to its long-term vision of achieving Net Zero Carbon emissions by 2070, aligning with India’s national targets and global efforts against climate change.

In conclusion, while FY 2024-25 presented financial challenges for Orient Cement Limited, the period was also one of significant strategic realignment and internal strengthening. The acquisition by Ambuja Cements Limited marks a new chapter, promising enhanced capabilities and market presence. Coupled with its deep-rooted commitment to sustainable practices, employee well-being, and community development, OCL is demonstrating remarkable resilience, laying down solid foundations for a future of growth and continued value creation for all its stakeholders.

(India CSR)