By Reuters

(Reuters) - India's Ambuja Cements (ABUJ.NS) reported a nearly threefold jump in its fourth-quarter profit on Monday, helped by tax gains and record ​cement sales volumes.

The Adani Group-owned cement maker posted a profit after ‌tax of 16.44 billion rupees ($173.06 million) for the quarter ended March 31, up from 5.55 billion rupees a year earlier.

Cement sales volumes increased 10% year-on-year to 19.9 million ​metric tons, the company's highest-ever quarterly volume, supported by infrastructure-led demand.

The ​company booked a tax credit of roughly 14.6 billion rupees ⁠in the March quarter, boosting bottom-line growth.

Ambuja booked the tax credit after ​reversing excess tax provisions from earlier years, following favorable court rulings and a ​reassessment of its tax positions.

India's cement demand grew about 6%–7% year-on-year in the March quarter, supported by infrastructure spending, though demand moderated toward the end of the quarter, analysts ​at HDFC Securities said.

Ambuja said higher fuel, diesel, and packaging costs linked ​to the conflict in West Asia and currency weakness weighed on costs during the quarter ‌and ⁠are likely to pressure costs in the first half of the new fiscal year.

The company added that India's long‑term infrastructure growth story remains fundamentally strong, but the outlook for fiscal 2027 growth is soft due to geopolitical challenges ​and an early ​forecast of a ⁠below‑normal monsoon.

"We expect industry demand at ~5% for FY27," CEO Vinod Bahety said in a statement.

Analysts at Elara Capital see ​slowing demand after the peak season, and seasonal weakness ​in the ⁠June quarter could pressure profitability in the coming months.

Revenue from operations rose 5.5% to 69.72 billion rupees in the reported quarter, driven by stronger volumes and ⁠improved pricing.