ACC begins FY27 with resilient performance, eyes stronger quarters ahead
New Delhi, July 24
ACC Ltd has begun FY27 with a resilient performance, supported by a higher share of trade volumes and continued premiumisation, while expressing confidence in improved operational performance in the coming quarters on the back of capacity expansion, cost optimisation and the proposed One Cement Platform, the company said on Friday.
Quarterly cement sales volume stood at 10 million tonnes, with the share of trade sales rising five percentage points year-on-year to 81 per cent.
The Adani Group cement company reported consolidated revenue from operations of Rs 5,808 crore for the April-June quarter (Q1 FY27), while operating EBITDA stood at Rs 457 crore with a margin of 7.9 per cent.
Profit after tax (PAT) came in at Rs 147 crore during the quarter.
In addition, premium products accounted for 44 per cent of trade sales, up three percentage points from a year ago.
Commenting on the performance, ACC Whole-Time Director and CEO Vinod Bahety said the company delivered a resilient quarter despite the impact of planned maintenance at larger integrated plants and higher material supply agreement (MSA) volumes with parent company Ambuja Cements.
"We have commenced FY27 with a resilient performance, driven by a higher share of trade volumes and continued premiumisation. We continued to prioritise value-led growth and quality earnings during the quarter," he said.
Bahety said the company expects better performance in the coming quarters, supported by the proposed One Cement Platform, strategic capacity additions and operational efficiencies driven by the group's digital initiatives.
The company said trial runs have commenced at its 2.4 MTPA grinding unit at Salai Banwa in Uttar Pradesh, while the Kalamboli expansion in Maharashtra is expected to add 1 MTPA capacity during the September quarter of FY27.
On the proposed amalgamation with Ambuja Cements, ACC said it has received SEBI's no-objection certificate and has filed an application with the National Company Law Tribunal (NCLT). The transaction is expected to be completed during FY27, subject to regulatory approvals.
The company also said it achieved marginal sequential cost reduction during the quarter through focused cost optimisation initiatives despite headwinds arising from the West Asia conflict.
At the consolidated Adani Cement level, the group remains committed to delivering around Rs 250 per metric tonne (PMT) cost reductions during FY27, according to the company.
On the sustainability front, ACC increased the share of green power in its operations to 31 per cent during the quarter from 26 per cent a year ago.
The company also received the Confederation of Indian Industry's GreenPro certification for its blended cement portfolio and GRIHA certification for its B2B and B2C blended cement products.
— IANS
Reader Comments
Resilience is the key word here! With infrastructure projects booming across India, ACC's capacity expansion in UP and Maharashtra is perfectly timed. But I hope they keep an eye on rising fuel costs—those West Asia conflict headwinds are real. Still, 31% green power is impressive progress! 🇮🇳
Seems like ACC is making the right moves—premiumisation, cost optimization, and green power. But I wonder if the MSA reliance on Ambuja Cements is a risk. In any market, when a subsidiary relies too heavily on its parent, it can mask true operational efficiency. Let's see the Q2 numbers before getting too excited.
As someone tracking the construction sector, this is reassuring. The trade sales share rising to 81% means more local dealers are preferring ACC over competitors—that's a strong retail play. Plus, the GreenPro and GRIHA certifications for blended cement are a big plus for eco-conscious builders. Solid quarter overall! 👍
A 7.9% EBITDA margin seems slim for a cement company, but I get it—planned maintenance can hit margins. The capacity expansion in Salai Banwa and Kalamboli should help in H2. Also, the SEBI no-objection for the Ambuja amalgamation is great news; merging operations should streamline everything. But Rs 250 PMT cost reduction is a bold target—let's see if they meet it.
Happy to see ACC pushing green energy to 31%! That's more than many industrial players. The GRIHA certification for B2C blended
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