ACC Q3 net profit plunges 63% to ₹404 crore; revenue rises amid amalgamation

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.

• Exceptional charges: Profits were further impacted by a one-time provision of ₹49.54 crore related to the implementation of new national labour codes.

• Base effect: The net profit in Q3 FY25 was significantly higher due to a one-time government grant of over ₹636 crore, which did not recur this year.

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.