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ACC Ltd reported a 68.27% year-on-year decline in consolidated net profit to INR 238.3 crore for the March quarter of FY26, even as it recorded its highest-ever quarterly revenue of INR 7,124.47 crore. The Adani Group cement firm attributed revenue growth to a higher share of premium products and improved trade sales, alongside record sales volumes of 11.9 million tonnes. Total expenses rose 22.7% during the quarter, impacting profitability. For the full financial year, net profit declined 11% to INR 2,137.23 crore, while total income increased to INR 26,363.8 crore. The company remains debt-free and continues to progress on its proposed merger with Ambuja Cements, expected to conclude by FY27. ACC indicated near-term demand may remain moderate amid macroeconomic and geopolitical factors, though long-term infrastructure demand remains supportive.
ACC Limited reported a 68.27% year-on-year decline in consolidated net profit to INR 238.3 crore for the March quarter of FY26, compared with INR 751.04 crore in the corresponding period a year earlier, despite recording its highest-ever quarterly revenue and sales volumes. The financial results were disclosed earlier in the past week through a regulatory filing. Advertisement
Revenue from operations during the quarter rose 17.96% to INR 7,124.47 crore, compared with INR 6,039.70 crore a year ago. The company attributed this growth to a higher share of premium cement in its product mix, which increased from 41% to 45% of trade sales. Sales volumes reached 11.9 million tonnes during the quarter, marking the highest level recorded by the company.
However, profitability was impacted by a rise in operating costs. Total expenses increased by 22.7% to INR 6,826.24 crore, reflecting cost pressures linked to energy inputs and broader macroeconomic factors. The increase in expenses offset gains from higher volumes and improved product mix.
Segment-wise, revenue from the cement business rose 16% to INR 6,656.53 crore, while the ready-mix concrete (RMC) segment reported revenue of INR 573.82 crore, up 36.64% year-on-year. Total income, including other income, stood at INR 7,198.52 crore, reflecting a growth of 14.1% during the quarter.
For the full financial year FY26, ACC reported an 11% decline in net profit to INR 2,137.23 crore. Total consolidated income for the year increased by 14.66% to INR 26,363.8 crore, indicating continued revenue growth despite margin pressures.
The company’s management indicated that performance during the quarter was supported by improved utilisation of existing assets, increased trade sales and sustained demand for premium products. The chief executive officer conveyed that the company recorded its highest-ever sales volume and revenue during the period, despite operating in a challenging environment characterised by global volatility and elevated energy costs.
ACC maintained a debt-free balance sheet, with a reported net worth of INR 20,554 crore and cash and cash equivalents of INR 918 crore. The company also provided an update on its proposed amalgamation with Ambuja Cements, stating that necessary applications have been filed with stock exchanges for no-objection certificates. The merger remains subject to statutory approvals, including clearance from the National Company Law Tribunal, and is expected to be completed by FY27.
In response to cost inflation linked to geopolitical developments in West Asia, the company indicated that it is implementing measures such as fuel mix optimisation, increased use of renewable energy, logistics efficiencies and long-term sourcing arrangements to mitigate input cost pressures.
Looking ahead, ACC expects cement demand growth in FY27 to remain moderate at around 5%, citing factors such as forecasts of a below-normal monsoon and continued volatility in fuel prices. However, the company noted that the long-term outlook for infrastructure-led demand in India remains stable.
Separately, the board has recommended a dividend of INR 7.50 per equity share of face value INR 10 for FY26, subject to shareholder approval.
Source - PTI
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