Quarterly Earnings Release
ACC Q1 FY2027 Results: Resilient Performance Despite Cost Pressures, Revenue at ₹5,808 Crore
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ACC Limited reported a resilient performance for Q1 FY2027 amid higher fuel and logistics costs driven by geopolitical developments. The company recorded revenue from operations of ₹5,808 crore with cement sales volume of 10.0 million tonnes. While profitability declined year-on-year due to planned maintenance shutdowns and input cost inflation, ACC continued expanding capacity, advanced its proposed merger with Ambuja Cements, and strengthened its sustainability initiatives.
PRICE-SENSITIVE TRIGGER
Event: Q1 FY2027 Financial Results Announcement
Type: Quarterly Earnings Release
Impact: Neutral
Immediate Effect: The company maintained healthy operating performance despite margin pressure from higher fuel costs and lower cement volumes. Operational improvements, cost optimisation initiatives and strategic expansion projects continued to support long-term growth.
Metrics:
Key Financial Metrics:
- Revenue from Operations: ₹5,808 crore
- Operating EBITDA: ₹457 crore
- EBITDA Margin: 7.9%
- PAT: ₹147 crore
- Diluted EPS: ₹7.8
- Sales Volume: 10.0 million tonnes
- Operating EBITDA per MT: ₹458
- Net Worth: ₹20,562 crore
- Cash & Cash Equivalents: ₹375 crore
Operational Metrics:
- Trade Market Share: 81% (up 5 percentage points YoY)
- Premium Product Mix: 44% of trade sales (up 3 percentage points YoY)
- Green Power Share: 31% (up from 26% YoY)
- Direct Dispatch: 52%
- Primary Lead Distance: 254 km
Highlight:
- Revenue from Operations: ₹5,808 crore
What Happened ?
ACC began FY2027 with resilient operating performance despite headwinds from elevated imported fuel prices and logistics costs. Profitability was impacted by planned maintenance at major integrated plants and lower cement volumes, while higher market share, premium product mix and ongoing cost optimisation initiatives helped support operational performance. The quarter also witnessed continued progress in strategic capacity expansion and the proposed amalgamation with Ambuja Cements.
key details
Operational & Business Highlights:
- Cement sales volume stood at 10.0 million tonnes during the quarter.
- Trade market share improved to 81%, while premium products contributed 44% of trade sales.
- Trial run commenced for the 2.4 MTPA grinding unit at Salai Banwa (Uttar Pradesh).
- Kalamboli expansion project remains on track to add 1 MTPA capacity during September 2026 quarter.
- Green power usage increased from 26% to 31% year-on-year.
- SEBI issued a No Objection Certificate for the proposed amalgamation with Ambuja Cements, with the application already filed before NCLT.
- Ready-mix concrete business expanded to 119 plants, with volumes increasing 17% YoY to 0.97 million cubic metres.
- Continued implementation of operational excellence initiatives under the CiVOC programme to improve efficiency and reduce costs.
- Digital BRSR for FY2025-26 was launched to strengthen ESG disclosures.
Note:
- The proposed merger with Ambuja Cements remains subject to regulatory approvals and is expected to be completed during FY2027.
Risk Analysis
Summary:
- Near-term profitability continues to face pressure from imported fuel inflation, freight costs and seasonal demand softness, although management expects operational efficiencies and expansion projects to support long-term performance.
Key Risks:
- Elevated petcoke and thermal coal prices increased production costs.
- Freight and logistics expenses remain affected by geopolitical developments in West Asia.
- Seasonal monsoon weakness may impact cement demand during Q2.
- Profitability remains sensitive to energy costs and input price volatility.
- The proposed amalgamation with Ambuja Cements is subject to statutory and regulatory approvals.
Worst Case:
- Sustained fuel inflation, weaker construction demand and delays in strategic expansion or regulatory approvals could continue to pressure margins and earnings.
Risk Level: Medium
Company Commentary
- Management stated that ACC began FY2027 with resilient operational performance supported by higher trade sales and continued premiumisation.
- The company reiterated its focus on value-led growth, quality earnings and operational excellence despite near-term cost pressures.
- Management expects the proposed One Cement Platform with Ambuja Cements to strengthen integration and improve long-term efficiency.
- ACC remains committed to achieving approximately ₹250 per metric tonne cost reduction during FY2027 through operational synergies and cost optimisation initiatives.
- The company remains focused on capacity expansion, renewable energy adoption and sustainable business practices.
Official Exchange Filing: ACC Limited
