Tax reversal, strong volumes power ACC's 460% profit jump in Q2FY26

ACC's second-quarter profit rose 460% year-on-year to Rs 1,119 crore on tax reversal gains and higher premium sales, as the cement major reported its best-ever Q2 revenue

ACC, a subsidiary of Ambuja Cement, on Friday reported that its consolidated profit (attributable to the owners of the company) for the second quarter of financial year 2026 (Q2FY26) surged by 460.6 per cent on year to ₹1,119.23 crore, amid higher premium sales and due to tax adjustment relating to earlier periods.

 

In Q2FY26, ACC reassessed its tax liabilities and provisions following favourable High Court rulings in similar cases. Based on these judgments, the management determined that certain provisions from earlier years were no longer required and reversed ₹658.42 crore (₹12.36 crore as of March 31, 2025), disclosed under tax adjustment/write-back relating to earlier periods (net).

 

 

ACC's profit before tax (PBT) in Q2FY26 grew by 139.2 per cent year-on-year (Y-o-Y) to ₹763 crore.

 

ACC’s revenue for the quarter stood at ₹5,932 crore, up by 23.8 per cent Y-o-Y, the highest ever in the Q2 series, driven by higher premium product as a percentage of trade sales at 47 per cent. The company also reported the highest-ever volumes in Q2 series at 10 million tonnes, up 16 per cent Y-o-Y.

 

The firm said that cement demand in Q2FY26 was moderate and grew 5.2 per cent Y-o-Y. The GST reduction from 28 per cent to 18 per cent has improved economic sentiments.

 

The profit beat the Bloomberg analysts’ poll estimate of ₹295.4 crore. The revenue too fairly surpassed the analysts’ estimate of ₹5,307.7 crore. 

 

Vinod Bahety, whole-time director and chief executive officer, ACC, said, “This quarter has been instrumental for the cement sector. Despite the challenges from prolonged monsoons, the sector stands to benefit from several favourable developments, including GST 2.0 reforms, the Carbon Credit Trading Scheme (CCTS), and the withdrawal of coal cess. These developments will support steady demand momentum going forward.”

 

ACC’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) during Q2FY26 stood at ₹846 crore, up 94 per cent Y-o-Y, while Ebitda margin stood at 14.3 per cent, up 4.8 percentage points Y-o-Y.

 

In H1FY26, the company’s revenue grew by 22.22 per cent Y-o-Y to ₹12,018.9 crore, while its profit grew by 167.2 per cent, to ₹1.494,61 crore. Sequentially, the company’s revenue declined by 2.6 per cent, but the profit grew by 198.2 per cent.

 

During Q2FY26, the company’s net worth increased by ₹1,151 crore and stood at ₹19,937 crore as of September 2025.

 

Additionally, ACC has a current capacity of 40.4 mtpa. With the ongoing expansion of Salai Banwa & Kalamboli plants, which are expected to be commissioned in Q3, the capacity will improve to 43.7 mtpa.

 

ACC noted that as part of the larger Adani Cement family and under the parentage of Ambuja Cements, it is benefitting from

 

the Group’s integrated ecosystem -- spanning logistics, renewable energy, and innovation. Parent Ambuja is investing ₹6,000 crore to set up 1000 megawatt (MW) of renewable power which will also supply power to ACC.

 

“Ambuja’s strategic investments in this ecosystem are also helping ACC’s expansion, cost improvement and transformation. The outlook for the balance of FY26 remains positive, led by cost improvement, premiumisation and digitisation,” ACC added.