Adani Group-owned cement major ACC Limited on Wednesday reported a sharp 63% year-on-year (YoY) decline in its consolidated net profit for the third quarter ended December 31, 2025. The company posted a net profit of ₹404.25 crore, compared with ₹1,091.73 crore in the corresponding quarter of the previous fiscal, as rising operational costs and one-time charges weighed on the bottom line.

Revenue growth and sales milestone

Despite the slump in net profit, the company’s consolidated revenue from operations grew 8.6% YoY to ₹6,391.17 crore. This growth was supported by infrastructure-driven consumption and the company achieving its highest-ever quarterly sales volume of 11.3 million tonnes, a 15% increase over Q3 FY25.

The ready mix concrete (RMC) segment also delivered a record performance, with volumes hitting 0.97 million cubic meters, up 36% compared to the same period last year.

Operational pressures and exceptional items

The steep fall in profitability can be attributed to several factors, including a high base in the previous year and current operational headwinds:

• Operating costs: The company faced pressure from volatile power and fuel costs and increased logistics expenses.

On an operational level, the company’s EBITDA for the quarter stood at ₹700 crore, with a margin of 10.8%.

Merger with Ambuja Cements

In a move aimed at consolidating the Adani Group’s cement holdings, the board approved the amalgamation of ACC Limited into its parent company, Ambuja Cements. Under the proposed scheme, ACC shareholders will receive 328 shares of Ambuja Cements (face value of ₹2 each) for every 100 shares of ACC (face value of ₹10 each).

This merger aims to create a unified "One Cement Platform," enhancing operational synergies, optimising supply chains, and strengthening the group's position as India's second-largest cement producer.

Management remains optimistic about the long-term demand for cement, citing the government’s continued focus on infrastructure development and a recovery in the housing sector. The company maintains a debt-free balance sheet with a net worth of ₹20,326 crore, providing it with a foundation for its ongoing capacity expansion and efficiency initiatives.

Over the past year, ACC has dipped more than 15%, sharply underperforming the benchmark Nifty 50, which gained nearly 12% during the same period.