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    ACC Limited

    ACC
    Construction Materials·30 Jan 2026
    Management Summary

    ACC delivered a strong Q3 FY26, achieving record volumes and revenue, with significant growth in PAT and EBITDA, driven by improved realizations and ongoing cost efficiencies. The company is progressing well on its capacity expansion to 155 MTPA by March '28 and remains debt-free. While one-off expenses impacted Q3 costs, management expects normalization, and is actively integrating acquired assets despite some initial ramp-up challenges.

    Highlights

    5

    • Achieved highest ever quarterly sales volume at 18.9 million tons, up 17% YoY, and market share improved to 16.6%.

    • Reported highest quarterly revenue at ₹10,277 crores, up 20% YoY, supported by INR5 per bag improvement in realizations.

    • Adjusted PAT for the quarter was ₹378 crores, a jump of 258%, and Operating EBITDA grew 53% to ₹1,353 crores, with EBITDA/ton at ₹718, up 31% YoY.

    • Significant progress in cost reduction initiatives, with kiln fuel cost down 6%, power cost down 15%, and logistics costs down 1% YoY.

    • Total capacity now stands at 109 MTPA, with a clear roadmap to 155 MTPA by March '28, and the company remains debt-free with a net worth of ₹69,854 crores.

    Concerns

    3

    • Q3 cost/ton was impacted by approximately ₹150-250 per ton in one-off expenses (branding, O&M, freight, legal), though December exit was below ₹4,000/ton.

    • Sanghi's ramp-up has been slower than initial guidance, operating around 50% utilization due to past issues like flooding, damaged equipment, and low-voltage transmission lines.

    • Commissioning of Warisaliganj grinding unit is delayed by 3 months, now scheduled for Q1 FY27.

    What Changed2

    vs Q4 FY26

    Guidance items10 → 23 (+13)Q&A highlights6 → 8 (+2)
    Key financials

    Metrics

    8

    Periods

    2

    Headline

    7
    • Revenue
      ₹10,277 Cr
      YoY+20%
    • Sales Volume
      18.9 MT
      YoY+17%
    • Operating EBITDA
      ₹1,353 Cr
      YoY+53%
    • EBITDA/ton
      ₹718
      YoY+31%
    • PAT (Adjusted)
      ₹378 Cr
      YoY+2.6%

    Q3 Average

    1
    • Cost/ton
      ₹4,500

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹9,000 crores

    Debt

    Gross ₹0 crores · Net ₹0 crores · 0.0x EBITDA

    M&A

    ACC and Orient Cement

    merger · pending regulatory

    Guidance & targets

    22
    CategoryTargetPriority
    Capacity
    Total capacity
    115 MTPA
    		High
    Capacity
    Total capacity
    130-132 MTPA
    		Medium
    Capacity
    Total capacity
    155 MTPA
    		High
    Capacity
    Debottlenecking capacity
    15 MTPA
    		High
    Cost
    Cost/ton
    ₹3,800 per ton
    		High
    Cost
    Cost/ton
    ₹3,650 per ton
    		High
    Cost
    Power cost per unit
    ₹4.5 per unit
    		High
    Cost
    Power cost reduction
    ₹100-125 per ton
    		Medium
    Cost
    Fuel cost reduction
    ₹150 per ton
    		Medium
    Cost
    Logistics cost reduction
    ₹150 per ton
    		Medium
    Cost
    Raw material cost reduction
    ₹100 per ton
    		Medium
    Cost
    Overall cost reduction
    ₹300-350 per ton
    		Medium
    Capacity Utilization
    Acquired assets utilization
    80%
    		High
    EBITDA
    EBITDA/ton (acquired assets)
    ₹1,250-1,300 per ton
    		High
    EBITDA
    EBITDA/ton (acquired assets)
    ₹1,500 per ton
    		Medium
    Industry Demand
    Industry demand growth
    8%
    		High
    Industry Demand
    Industry demand growth
    8%
    		High
    Green Power
    Renewable energy capacity
    1,122 MW
    		High
    Market Mix
    Trade vs Non-trade sales
    70%-30%
    		Medium
    Commissioning
    Penna commissioning
    February
    		High
    Commissioning
    Maratha clinker unit commissioning
    Q1 to Q2
    		Medium
    Commissioning
    Assam new line (4 MTPA)
    18-24 months
    		Medium

    Cost/ton (March '26 exit)

    March '26
    Current₹4,500/ton (Q3 average), below ₹4,000/ton (Dec exit)
    TargetBelow ₹4,000/ton

    Why it matters

    Verifying the sustained reduction in cost/ton, especially after Q3's one-off📎 expenses, is crucial for profitability outlook.

    Therefore, exit of December already, as I said, we are below INR4,000 a ton.

    How to verify

    key_financials.metrics[label='Cost/ton (Dec Exit)']

    Risks & concerns

    4
    RiskSeverity

    One-off expenses impacting quarterly costs

    Q3 cost/ton was impacted by approximately ₹150-250 per ton due to one-off expenses related to branding, O&M, freight, and legal costs. — Management acknowledged

    medium

    Volatility in O&M costs

    Historically, O&M costs have shown volatility, which management plans to address by amortizing these costs over 12 months from the next fiscal year. — Management acknowledged

    medium

    Slower-than-expected ramp-up of Sanghi assets

    Sanghi's utilization has been sub-50% for a while due to past issues like flooding, damaged equipment, and low-voltage transmission lines, impacting its contribution. — Analyst acknowledged

    medium

    Delay in Warisaliganj commissioning

    The commissioning of the Warisaliganj grinding unit has been delayed by 3 months, now expected in Q1 FY27. — Management acknowledged

    low

    Q&A highlights

    8

    “Orient, if I exclude, that would come somewhere like 8%. And if I completely remove all the acquired assets and then if I go with the base capacities, Navin, that comes to in fact, that is a tad better than the industry, it comes to closer to around 6%, yes.”

    Clarified the underlying organic growth rate of Ambuja and ACC, showing it was still competitive even without the acquired assets.

    asked by Navin Sahadeo

    3 min read6 chapters

    Detailed Narrative

    01

    Strong Q3 FY26 Performance Driven by Volume and Realization Growth

    ACC delivered a robust Q3 FY26, achieving its highest ever quarterly sales volume of 18.9 million tons, marking a 17% year-on-year growth and improving market share to 16.6%. Revenue also reached a record ₹10,277 crores, up 20% YoY, supported by a ₹5 per bag improvement in realizations. Adjusted PAT surged by 258% to ₹378 crores, and Operating EBITDA increased by 53% to ₹1,353 crores, translating to an EBITDA/ton of ₹718, a 31% YoY increase.

    02

    Ambitious Capacity Expansion and Roadmap

    The company's total capacity currently stands at 109 MTPA, with a revised target of 115 MTPA by March '26, factoring in the mothballing of 2 MTPA of unviable units. ACC aims to further expand to 130-132 MTPA by March '27 and a significant 155 MTPA by March '28, including an additional 15 MTPA from debottlenecking at lower capex. Key commissioning events include the Marwar Grinding Unit (2.4 MTPA) ahead of schedule, Penna in February, and the Maratha clinker unit in Q1-Q2 FY27. A new 4 MTPA line in Assam is also planned for commissioning within 18-24 months.

    03

    Focused Cost Management and Efficiency Initiatives

    While the average cost/ton for Q3 was ₹4,500, the company exited December below ₹4,000/ton, indicating the impact of approximately ₹150-250 per ton in one-off📎 expenses during the quarter. ACC is committed to achieving a cost/ton of ₹3,800 by March '27 and ₹3,650 by March '28. This will be driven by targeted reductions of ₹100-125 per ton in power costs, ₹150 per ton in fuel costs, ₹150 per ton in logistics costs, and ₹100 per ton in raw material costs. From the next fiscal year, O&M costs will be amortized over 12 months to reduce quarterly volatility.

    04

    Integration and Performance of Acquired Assets

    The integration of acquired assets like Sanghi and Penna is progressing, with Sanghi's clinker utilization reaching 80% in December and cement at 65%. Penna's December utilization was 52-55%, with its commissioning expected in February, which should lead to sharp improvements. Management targets 80% utilization for all acquired assets and an EBITDA/ton of ₹1,250-1,300, with a long-term goal of ₹1,500 per ton. Past issues at Sanghi, such as flooding and low-voltage transmission lines, are being addressed with infrastructure improvements.

    05

    Advancing Green Energy and Sustainability Goals

    ACC's renewable energy footprint stands at 900 MW, with a target to reach 1,122 MW by FY27, providing long-term insulation against energy price volatility. The green power share increased by 15% to 37%, contributing to a 15% reduction in power cost. The overall power cost is currently ₹6.1 per unit (excluding green power sale), with a target of ₹4.5 per unit by FY28. The company is also implementing innovative technologies like Coolbrooks RDH for kiln electrification and an Indo-Swedish carbon capture pilot project.

    06

    Market Dynamics and Realization Strategy

    Management remains bullish on cement demand, projecting an 8% industry growth for both FY26 and Q4 FY26. The company expects to achieve double-digit volume growth, balancing volume and value. Realizations improved by ₹5 per bag YoY, with trade pricing outperforming non-trade, widening the gap to ₹31 per bag. Premium cement volumes grew 31% YoY, now accounting for 35% of trade sales, with a long-term target to increase trade sales share to 70%.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.