ACC Q3 FY26 Performance Shows How Profits Roared Back
Newzdaddy Business Updates
ACC Limited has delivered one of its strongest quarterly performances in recent years, and the numbers clearly show why the market is paying attention. A sharp jump in profit, record-breaking volumes and steady control over costs point to a company that is not only growing fast but doing so with discipline. For the quarter ended December 31, 2025, ACC reported a massive year-on-year rise in profit after tax on a normalised basis, driven mainly by higher sales, better prices and stronger demand across key regions.
The cement maker achieved its highest-ever quarterly sales volume of 11.3 million tonnes. This matters because volume growth is the clearest sign of demand strength in a price-sensitive industry like cement. Industry studies from bodies such as the Cement Manufacturers’ Association show that volume growth above 10 per cent in a single quarter usually reflects strong infrastructure spending and a recovery in housing activity. ACC’s 15 per cent growth, therefore, places it well ahead of the broader market trend.
Revenue growth followed the same path. With revenues rising 22 per cent year-on-year on a normalised basis, ACC benefited not just from selling more cement, but from selling better-quality and premium products. Research across the Indian cement sector shows that premium cement typically earns higher margins because it is used in complex projects such as highways, metros and high-rise buildings. ACC’s premium products now form a large share of its trade sales, which helps explain why its prices were higher than those of many peers.
The company’s ready-mix concrete business also stood out. ACC reported its highest-ever quarterly RMX volume, up 36 per cent year-on-year. This reflects a wider industry shift. Urban developers increasingly prefer ready-mix concrete for speed, quality control and lower wastage. Market reports from construction consultancies indicate that RMX demand in Indian cities has been growing faster than bagged cement, especially in metro rail, commercial buildings and large housing projects. ACC’s expanded network of RMX plants across 45 cities puts it in a strong position to tap this trend.
Profitability improved despite cost pressures faced by the wider industry. ACC’s EBITDA margin rose to 10.8 per cent, supported by lower power and fuel costs and better logistics planning. Energy costs are one of the biggest challenges for cement producers, often making up over 30 per cent of total costs. ACC’s growing use of green power, waste heat recovery systems and alternative fuels reflects global best practices in cement manufacturing. International cement studies show that companies investing early in energy efficiency are better protected against fuel price swings, something ACC appears to be achieving.
The company’s balance sheet strength also deserves attention. Remaining debt-free in a capital-heavy industry is rare. Credit rating agencies often view a strong net worth and low debt as key indicators of long-term stability, especially during periods of economic uncertainty. ACC’s AAA ratings from domestic agencies underline market confidence in its financial discipline and cash management.
A major development during the quarter was the announced amalgamation of ACC with Ambuja Cements Limited, creating a single cement platform. Large mergers in the cement sector are usually aimed at cost savings, better logistics and stronger market reach. Past examples in India and overseas show that combined procurement, shared transport networks and unified branding can significantly improve efficiency. While regulatory approvals are still pending, the proposed integration is expected to strengthen ACC’s position as part of a larger national cement powerhouse under the broader Adani Group portfolio.
Digital initiatives such as the Cement Intelligent Network Operating Centre are another important part of ACC’s strategy. Across manufacturing industries, digital tools are being used to improve forecasting, reduce downtime and respond faster to market changes. By equipping its sales teams with smart devices and real-time data, ACC is following a proven global approach to improve productivity and customer service.
On the sustainability front, ACC’s strong ESG performance aligns with growing investor and policy focus on greener construction. Cement is one of the most carbon-intensive industries globally. Studies by international climate bodies highlight that emissions reduction in cement will be critical to meeting long-term climate goals. ACC’s investments in green power, carbon reduction technologies and water conservation place it among the more forward-looking players in the sector.
The industry outlook also supports ACC’s positive momentum. Analysts expect cement demand in India to grow steadily, driven by government spending on roads, railways, housing and urban infrastructure. With demand recovery already visible in the second half of the financial year, companies with strong brands, wide distribution and cost control are likely to gain market share.
Overall, ACC’s Q3 FY26 performance reflects more than just a good quarter. It shows a company benefiting from favourable market conditions while also executing well on strategy, costs and sustainability. If demand remains strong and planned capacity additions come on time, ACC appears well placed to maintain its growth path and play a key role in India’s expanding infrastructure story.
