Highlights

• ACC reports highest-ever quarterly sales volume at 11.9 MnT in Q4 FY’26.
• Profit after tax declines sharply due to higher input and logistics costs.
• Premium product share and RMC volumes show steady operational shift.

ACC Limited (NSE:ACC) reported its highest-ever quarterly sales volume of 11.9 MnT in Q4 FY’26, reflecting an 8% YoY increase. Revenue from operations rose 17% YoY to Rs 7,146 Cr, supported by higher premium cement contribution, which increased to 45% of trade sales.

Ready Mix Concrete volumes also reached a record 1.14 Mn cubic meters, rising 33% YoY, indicating broader business diversification beyond cement.

Profitability Impacted by Cost Pressures

Despite revenue growth, operating EBITDA declined to Rs 627 Cr from Rs 830 Cr in the same quarter last year. EBITDA margin contracted to 8.8% from 13.6% YoY.

Profit after tax showed a sharp decline of approximately 68% YoY, impacted by higher fuel, logistics, and packaging costs. Management noted increased kiln fuel costs and broader energy price pressures during the quarter.

On a normalised basis, FY’26 EBITDA stood at Rs 2,950 Cr, marking a 22% YoY improvement after adjusting for one-time items in FY’25.

Operational Efficiency and Cost Management Efforts

Green power usage increased to 31% in Q4 FY’26 from 22% YoY, while WHRS contribution rose to 16.4%. The company focused on fuel mix optimisation, logistics efficiency, and increased renewable energy usage to manage cost pressures.

Capacity utilisation improved sequentially to around 80%, supported by better asset deployment and demand stability across key markets.

Strategic Expansion and Industry Position

ACC announced expansion projects at Salai Banwa (UP) and Kalamboli (MH), expected to add 3.4 MTPA capacity in Q1 FY’27.

The proposed merger with Ambuja Cements under the “One Cement Platform” is under regulatory review and is expected to complete in FY’27, subject to approvals.

Stock Performance Overview

ACC Limited trading  at ₹1,398.50, down ₹23.60 or -1.66%. Volume stood at 428.19K. Overall, stock shows continued weakness after recent recovery attempt, facing resistance near moving average. Short-term outlook remains cautious with limited upside momentum.

Risks

• Rising fuel and energy costs may continue impacting margins.
• Demand slowdown due to monsoon variability may affect cement consumption.
• Logistics disruptions and input cost inflation may pressure earnings.
• Regulatory delays in merger approvals may affect strategic timelines.

Summary

ACC Limited (NSE:ACC) reported record quarterly volumes and revenue growth in Q4 FY’26, driven by higher premium cement mix and RMC expansion. However, profitability declined sharply due to rising fuel and logistics costs, resulting in significant margin compression. Stock performance remains weak over longer periods despite short-term recovery. Strategic expansion and merger plans remain key focus areas going forward.

FAQs

1. Why did ACC profit decline in Q4 FY’26?
   Profit declined mainly due to higher fuel, logistics, and packaging costs despite revenue growth.
2. Did ACC’s revenue increase during the quarter?
   Yes, revenue rose 17% YoY driven by higher sales volume and premium product contribution.
3. What is ACC’s current stock performance trend?
   Stock shows weak long-term returns but mild short-term recovery over the past month.