- Q1 revenue at ₹5,808 crore; operating EBITDA at ₹457 crore amid maintenance shutdowns and higher MSA volumes
- Cement sales volume at 10 MnT; trade share rises 5 percentage points to 81%, premium products reach 44%
- Green power contribution climbs to 31% from 26%; focused cost optimisation offsets geopolitical headwinds
- Salai Banwa 2.4-MTPA grinding unit begins trial run; Kalamboli expansion to add 1 MTPA capacity
- One Cement Platform moves ahead as SEBI NOC received and NCLT application filed for ACC-Ambuja amalgamation
- RMX network expands to 119 plants; volume rises 17% YoY, while FY27 group cost-reduction target stands at ₹250 per tonne
NE BUSINESS BUREAU
AHMEDABAD, JULY 25
For a cement company, resilience is tested not merely by how much it sells, but by how effectively it protects value when volumes, costs and geopolitical risks move in opposite directions. ACC Limited has begun FY27 with a performance that reflects this balancing act — strengthening its trade and premium mix, increasing green-power usage and advancing capacity expansion even as planned maintenance and West Asia-linked cost pressures weighed on profitability.
Part of the diversified Adani Cement portfolio, ACC reported consolidated revenue from operations of ₹5,808 crore for the quarter ended June 30, 2026, while operating EBITDA stood at ₹457 crore.
Cement sales volume stood at 10 MnT, with the company noting that the figure included higher MSA volumes with parent Ambuja Cements. The quarter also saw a substantial improvement in the sales mix, with trade share rising by 5 percentage points year-on-year to 81% and premium products accounting for 44% of trade sales, up from 41% a year earlier.
₹5,808-crore revenue; profitability absorbs maintenance and MSA impact
ACC reported PAT of ₹147 crore and diluted EPS of ₹7.8 in Q1 FY27.
Operating EBITDA margin stood at 7.9%, while operating EBITDA per tonne was ₹458.
The company said profitability during the quarter reflected the impact of planned maintenance at larger integrated units and higher MSA volumes with parent Ambuja Cements, even as it continued to focus on value-led growth and quality earnings.
“We have commenced FY’27 with a resilient performance, driven by a higher share of trade volumes and continued premiumization,” said Vinod Bahety, Whole-Time Director & CEO, ACC Limited.
“During the quarter, profitability reflected the impact of planned maintenance of larger Integrated Units, higher MSA with parent Ambuja Cements, even as we continued to prioritize value-led growth and quality earnings,” he added.
Premiumisation becomes the earnings shield
ACC’s Q1 operating metrics point to a continued emphasis on improving the quality of sales.
Trade share rose to 81% from 76% a year earlier, while premium products increased to 44% of trade sales from 41%.
Direct dispatch improved to 52% from 51%, while primary lead distance declined to 254 km from 290 km, supporting logistics efficiency.
Power cost also declined to ₹5.6 per kWh from ₹6.1 per kWh in the year-ago quarter.
The company’s green power share stood at 31%, compared with 26% in Q1 FY26, reinforcing its efforts to reduce exposure to conventional energy and improve the sustainability profile of operations.
₹250 per tonne cost-reduction ambition across Adani Cement
ACC said it achieved a marginal sequential reduction in costs through focused optimisation initiatives despite headwinds arising from the conflict in West Asia.
The company is pursuing fuel-mix optimisation, greater renewable-energy adoption, logistics efficiencies, higher-margin market focus and disciplined cost management.
Bahety said the company’s journey towards building a simpler, stronger and more integrated business would continue through the proposed One Cement Platform.
“Combined with strategic capacity expansions at Salai Banwa and Kalamboli, CiNOC-enabled operational excellence and customer-focused solutions, we have a good visibility of improved performance in the coming quarters,” he said.
“Leveraging the strength of our integrated business model and group synergies, Adani Cement at consolidated level remains committed to delivering approximately ₹250 PMT cost reductions in FY’27,” Bahety added.
Capacity expansion gathers pace; Salai Banwa begins trial run
ACC’s capacity expansion programme is moving into execution.
The company has commenced the trial run of its 2.4 MTPA grinding unit at Salai Banwa in Uttar Pradesh.
The expansion at Kalamboli, Maharashtra, is expected to add a further 1 MTPA capacity in the September 2027 quarter.
These projects are expected to support the company’s long-term volume growth while strengthening its ability to serve strategically important markets.
One Cement Platform: ACC-Ambuja integration advances
The proposed amalgamation of ACC with Ambuja Cements has progressed further.
ACC received the SEBI No-Objection Certificate on June 4, 2026, and an application was filed with the National Company Law Tribunal on June 29, 2026.
The transaction remains subject to statutory and regulatory approvals and is expected to be completed during FY27.
The proposed One Cement Platform is aimed at simplifying the group structure and leveraging operational, commercial and strategic synergies across the cement businesses.
RMX business accelerates as concrete footprint reaches 119 plants
ACC’s ready-mix concrete business continued its growth trajectory.
The RMX footprint increased to 119 plants, while volume rose 17% year-on-year to 0.97 million cubic metres.
The business reported EBITDA of ₹33 crore, highlighting the growing contribution of concrete solutions to the broader building-materials portfolio.
Green power and sustainability move deeper into the portfolio
ACC increased its green power share to 31% in Q1 FY27 from 26% a year earlier.
The company received CII’s GreenPro certification for its blended cement portfolio and GRIHA certification across its entire B2B and B2C blended cement portfolio.
The company said the certifications, including additional recognition for Life Cycle Assessment (LCA) and innovation based on Environmental Product Declaration (EPD), extend its sustainability credentials beyond individual products to validated lifecycle performance.
ACC was also recognised as India’s Most Sustainable Company 2026 in the Cement Sector by Business Today.
The company launched its Digital BRSR for FY 2025-26, providing stakeholders with interactive access to ESG disclosures and sustainability performance information.
West Asia conflict creates near-term fuel and freight pressure
ACC said the Indian cement sector faced cost pressures during Q1 FY27 due to higher prices of imported fuels, including petcoke and thermal coal, as well as elevated freight and logistics costs linked to geopolitical developments in West Asia.
Given the industry’s 60–90-day fuel inventory cycle, the impact of peak fuel-cost inflation could coincide with the seasonally weaker second quarter, potentially affecting near-term industry profitability.
ACC said it would continue to mitigate the pressure through fuel-mix optimisation, renewable-energy adoption, logistics efficiencies, focus on higher-margin markets and disciplined cost management.
Strong balance sheet supports the next capex cycle
ACC reported net worth of ₹20,562 crore and cash and cash equivalents of ₹375 crore.
The company continues to maintain the highest AAA/A1+ credit ratings from CRISIL and CARE, while healthy cash flows are supporting its capital expenditure programme.
With cement demand expected to remain soft at around 5% in FY27 amid monsoon seasonality, geopolitical uncertainties and input-cost volatility, the company said the long-term industry outlook remains constructive, supported by infrastructure investment, urbanisation and housing demand.
ACC’s FY27 opening quarter therefore presents a mixed but strategically significant picture: near-term earnings face cost and volume pressures, but premiumisation, green-power expansion, capacity additions, integration with Ambuja and operational efficiencies are steadily reshaping the company’s longer-term growth engine.
