 "ACC Q1FY26 results: Net profit grows 4% amid increased sales volumes")
Cement major ACC’s consolidated profit (attributable to the owners of the company) for the first quarter of the financial year 2026 (Q1 FY26) grew by 4.4 per cent year-on-year (YoY), to Rs 375.4 crore, amid a 12 per cent growth in sales volume.
The cement and clinker volume of Ambuja Cements' subsidiary stood at 11.5 million tonnes, the highest ever in the first quarter for the company. Meanwhile, trade sales volume grew by 6 per cent, and the share of premium products in trade sales stood at 41 per cent, up by 7 percentage points YoY. However, the profit missed the Bloomberg analysts’ poll estimate of Rs 547 crore.
The company’s revenue for the quarter grew by 17.3 per cent YoY, to Rs 6,098.1 crore, amid higher trade sales volume and a higher share of premium products in trade sales. The revenue comfortably surpassed the analysts’ estimate of Rs 5,718.1 crore.
The company’s total expenses for the quarter stood at Rs 5,594.25 crore, up 16.84 per cent YoY.
Vinod Bahety, whole-time director and chief executive officer, ACC, said, “With a purpose-driven accelerated start to the year, our performance reflects the strength of our integrated strategy—anchored in premium sales, operational excellence, cost leadership, and a deep commitment to sustainability. The consistent growth in volumes, efficiency gains, and digital transformation initiatives are enabling us to deliver greater value to our customers and stakeholders.”
ACC’s operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) during Q1 FY26 stood at Rs 778 crore, up by 14.6 per cent. However, its operating EBITDA margin declined to 12.8 per cent in Q1 FY26 from 13.1 per cent in Q1 FY25.
Sequentially, the company’s revenue declined marginally by 30 basis points, but the profit dipped by 50 per cent. These results come amid an all-India quarterly cement price hike of 6 per cent during the quarter, following a low base from Q1 FY25, which was affected by general elections. According to Elara Capital, the average pan-India cement prices rose by 3 per cent quarter-on-quarter (QoQ) in Q1 FY26 to Rs 377 per bag.
Cement demand growth in Q1 FY26 remained strong at 4 per cent, supported by favourable macroeconomic conditions and sustained demand from the housing and infrastructure sectors, the company noted.
During Q1 FY26, the company’s kiln fuel cost reduced by 10 per cent, thanks to the use of low-cost imported petcoke, improved linkage and captive coal consumption, and synergies with group companies. The company’s logistics costs also reduced by 5 per cent to Rs 972 per tonne.
"Healthy upticks in volumes, operational efficiency, cost control, and capex management affirm our progress and reinforce our commitment to industry-leading cost competitiveness," the company stated.
During the quarter under review, ACC’s net worth increased by Rs 228 crore to Rs 18,787 crore as of June 30, 2025.
The outlook for Q2 FY26 remains strong. For FY26, cement demand is expected to grow between 6 and 7 per cent due to a rise in demand for affordable housing (both rural and urban) and higher spending on infrastructure and the commercial sector, which includes increased investment in the core and allied infrastructure sectors, ACC noted.
Additionally, ACC’s shares listed on the Bombay Stock Exchange closed at Rs 1,893.40 per equity share on Thursday (24 July).