ACC Ltd has kicked off FY27 with a strong performance, driven by increased trade volumes and a focus on premium products. The company is optimistic about future operational improvements due to capacity expansion, cost efficiencies, and the upcoming One Cement Platform. Quarterly cement sales volume reached 10 million tonnes, with trade sales accounting for 81 percent, a five-percentage-point increase year-on-year.
The Adani Group’s cement arm reported consolidated revenue of Rs 5,808 crore in the April-June quarter, with an operating EBITDA of Rs 457 crore and a margin of 7.9 percent. Profit after tax for the quarter stood at Rs 147 crore. Furthermore, premium products constituted 44 percent of trade sales, marking a three-percentage-point rise from the previous year.
Vinod Bahety, ACC’s Whole-Time Director and CEO, highlighted the company’s resilient performance despite challenges like planned maintenance and increased material supply agreements. Bahety emphasized the focus on value-led growth and quality earnings in the quarter. Looking ahead, ACC anticipates enhanced performance in the upcoming quarters, supported by strategic capacity expansions and operational efficiencies from digital initiatives.
ACC has initiated trial runs at its 2.4 MTPA grinding unit in Uttar Pradesh and expects to add 1 MTPA capacity in Maharashtra by the September quarter of FY27. The company is also progressing with its proposed merger with Ambuja Cements, having received SEBI’s no-objection certificate and filed an application with the NCLT. The amalgamation is slated for completion in FY27, pending regulatory approvals.
Despite challenges from the West Asia conflict, ACC achieved marginal cost reductions through focused optimization efforts in the quarter. The Adani Group aims to achieve cost reductions of around Rs 250 per metric tonne at the consolidated Adani Cement level in FY27. Additionally, ACC increased its green power usage to 31 percent during the quarter and received certifications for its sustainable practices.
