Highlights

• ACC reported a sharp 68.00% YoY decline in Q4 net profit to ₹238.00 crore
  • Revenue hit a record ₹7,124.00 crore, supported by strong premium product mix
  • Rising fuel, diesel, and logistics costs significantly impacted margins
  • Dividend of ₹7.50 per share announced for shareholders
  • Stock closed near ₹1,422.10, down 1.01% after results
  • RSI near 49.17 indicates neutral momentum after recent consolidation

Overview

ACC Limited (NSE: ACC) ended the session near ₹1,422.10, slipping 1.01% after announcing its Q4 FY26 results. While the company reported its highest-ever quarterly revenue, profitability came under significant pressure due to rising input and operational costs.

The contrasting performance highlights a key theme—strong demand and pricing power on one side, but margin compression on the other.

Fundamental View

ACC reported a consolidated net profit of ₹238.00 crore in Q4 FY26, marking a steep 68.00% decline on a year-on-year basis. The drop was primarily driven by elevated costs across fuel, diesel, and packaging, which increased significantly during the quarter.

Despite this, revenue rose to a record ₹7,124.00 crore, supported by a stronger premium product mix, which contributed around 45.00% of total sales. This reflects the company’s focus on value-added products and improved realizations.

However, cost inflation—especially linked to energy and logistics—offset these gains, resulting in weaker margins. The ongoing geopolitical tensions and rupee weakness further added to input cost pressures.

On the shareholder front, the company announced a dividend of ₹7.50 per share, indicating continued capital return despite earnings pressure.

ACC also outlined expansion plans, including capacity additions of 3.40 MTPA expected to be completed by Q1 FY27, aimed at supporting long-term growth.

Why Margins Are Under Pressure?

The sharp fall in profit is largely attributed to rising fuel and energy costs, which form a significant portion of cement production expenses. Diesel and freight costs also increased, impacting distribution margins.

Additionally, the broader macro environment—including elevated crude oil prices and currency weakness—has increased input costs across the value chain.

While demand remains stable, cost pressures have limited the company’s ability to fully translate revenue growth into profitability.

Technical View

ACC is currently trading near ₹1,422.10 and remains below its 50-day Simple Moving Average near ₹1,456.62, indicating a slightly weak near-term structure.

The price action reflects a recovery from recent lows near ₹1,300.00, followed by a phase of consolidation. The structure shows an attempt to stabilise but lacks strong directional momentum.

The 14-day RSI is near 49.17, hovering around the neutral zone, suggesting balanced momentum without clear bullish or bearish dominance.

The immediate support zone is placed around ₹1,300.00–1,220.00. On the upside, resistance is seen near ₹1,535.00–1,690.00. A sustained move above the 50-day SMA could improve the short-term outlook.

Latest News

ACC’s Q4 results reflected a sharp divergence between revenue growth and profitability. While demand trends and pricing supported record revenues, rising cost pressures—particularly fuel and logistics—impacted margins significantly.

The company also highlighted expectations of continued cost pressures in the near term, along with a cautious demand outlook influenced by macro conditions and weather-related factors.

Key Risks

• Continued rise in fuel and logistics costs may pressure margins
  • Weak demand outlook due to macro and seasonal factors
  • Currency depreciation could increase input cost burden
  • Failure to sustain above ₹1,300.00 may weaken price structure

Summary

ACC Limited delivered strong revenue growth in Q4 FY26, but rising costs led to a sharp decline in profitability. The earnings reflect the ongoing challenge of balancing growth with margin pressures in a volatile cost environment.

From a technical perspective, the stock is stabilising after a recent decline but remains below key moving averages. The next directional move will depend on whether the company can manage cost pressures while sustaining revenue momentum.

FAQs

Why did ACC profit fall despite strong revenue?
Profit declined due to rising fuel, diesel, and operational costs, which impacted margins.

What was ACC’s Q4 FY26 revenue?
ACC reported record revenue of ₹7,124.00 crore in Q4 FY26.

What are the key levels to watch for ACC stock?
Support is near ₹1,300.00–1,220.00, while resistance is around ₹1,535.00–1,690.00.