ACC Q1 profit falls 60% as volumes, margins weaken
ACC reported Q1 net profit of ₹147 crore, down 60% year-on-year, as sales volumes fell 7% and higher fuel, logistics and supply-agreement costs hit margins. Revenue declined 8% to ₹5,790 crore, while EBITDA fell 41% to ₹457 crore. Its merger with Ambuja Cements is targeted for FY27.
What happened
Adani Group cement maker ACC reported a 60% Q1 profit decline as higher Ambuja supply-agreement routing, planned plant maintenance and fuel and logistics costs
Key facts
- Q1 net profit ₹147 crore, down 60% year-on-year from ₹375 crore
- Revenue ₹5,790 crore, down 8% from ₹6,277 crore
- Sales volume 10 million tonnes, down 7% year-on-year
- EBITDA ₹457 crore, down 41%
Why this matters
The planned FY27 merger with Ambuja Cements becomes more strategically important as ACC’s standalone profitability weakens, increasing the value of credible synergy, procurement and logistics integration plans.
What to watch
- Monthly cement price trends in ACC's core markets, especially post-monsoon.
- Quarterly sales-volume growth versus industry dispatch growth.
- EBITDA per tonne and management commentary on fuel, freight and power costs.
- Petcoke, coal, diesel and railway-freight movements.
- Capacity commissioning and competitive pricing by major cement peers.
- Infrastructure award execution, housing starts and monsoon intensity.
- Regulatory, shareholder and operational milestones for the FY27 merger.
- Push higher-price realization actions by region while defending dealer network share.
- Shift fuel sourcing and increase use of alternative fuels to reduce energy-cost volatility.
- Use Ambuja group scale for freight, procurement and supply-agreement renegotiation.
- Prioritize premium cement, ready-mix concrete and value-added product mix over volume-only growth.
- Accelerate integration planning ahead of the targeted FY27 ACC-Ambuja merger.