ACC records highest-ever Q2 revenue of ₹5,932 crore as volumes grow 16% YoY to 10 million tonnes

ACC said on Friday that it has recorded its highest-ever revenue in the second quarter of ₹5,932 crore, up 28% year-on-year. Its net profit was ₹1,119 crore, including a one-time reversal of a tax provision of ₹671 crore. The profit before tax was ₹763 crore in the second quarter, more than double that of the ₹284 crore in the same period last year.

“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. Salai Banwa, Kalamboli expansion projects will add 3.4 MTPA during this year,” said Vinod Bahety, whole-time director and CEO, ACC, in a statement.

According to Bahety, plant debottlenecking will unlock 5.6 MTPA of capacity, and logistics debottlenecking will improve utilisation levels by 3%. “Ambuja’s strategic investments in this ecosystem are also helping ACC’s expansion, cost improvement and transformation. The upcoming clinker capacities of Ambuja of around 30 MTPA, 1000 MW of renewable energy power will also be available for ACC under MSA, which will continue its growth momentum. The outlook for the balance of FY26 remains positive, led by cost improvement, premiumisation and digitalisation,” he added.

According to ACC, Adani Cement’s average age in 2022 was 38 years, influenced by the legacy of ACC assets (average age of 50 years). The average age has improved by almost 40% and will continue to improve sharply to 155 MTPA by FY 2028. This will provide opportunities for improved efficiency and better operating leverage.

ACC also stands to benefit from the parent company’s investment in renewable energy (including solar and wind) under the MSA, as its power costs have decreased by 9% from ₹6.54 to ₹5.95/kWh. Along with the parent company, ACC continues to work on cost leadership and targets to achieve ₹3,650/MT by FY28. The company said it would share further details in due course.

The company said cement demand in the second quarter was moderate, rising 5.2% year-on-year. “With GST reduction from 28% to 18%, improved economic sentiments, and higher investments both from public and private sectors, the demand is expected to see an uptick, and we stand by our earlier annual growth estimate of 7-8%,” it added.

ACC shares closed 1.05% higher on Friday at ₹1,879 apiece.