ACC Limited reported a sharp fall in profit for the July-September quarter of 2026, even as it increased its cement capacity and sold more premium products. The Ahmedabad-based cement maker, part of the Adani Group, recorded a consolidated net profit of Rs 93 crore, down about 92% from Rs 1,119 crore in the same quarter last year.

The company announced its results on 27 October 2026. Revenue from operations stood at Rs 5,689 crore, while operating EBITDA fell to Rs 401 crore, for a 7% margin. EBITDA per tonne was Rs 414.

The fall in earnings came during a difficult period for cement producers. Higher fuel costs, monsoon-related construction delays, seasonal plant shutdowns and limited domestic coal supplies put pressure on the sector. ACC also faced a high comparison with last year’s profit, which included a tax provision reversal of Rs 659 crore and interest of Rs 205 crore on an income tax refund.

Cement sales volume reached 9.72 million tonnes in the quarter, compared with 10 million tonnes a year earlier. For the first half of FY27, sales stood at 19.72 million tonnes, against 20.6 million tonnes in the same period last year.

ACC’s sales mix showed some improvement. Trade sales, which serve individual buyers, contractors and smaller construction projects, accounted for 78% of total sales, up seven percentage points from a year earlier. Premium products made up 47% of trade sales, while blended cement accounted for 85% of total sales, compared with 78% in the same quarter last year.

These figures matter because cement makers face pressure to protect their earnings when production and transport costs rise. Higher sales of premium cement can help improve the average price earned per tonne, although the company has not said how much this change added to its profit.

ACC’s ready-mix concrete business also grew. Sales volume reached 1.07 million cubic metres in the quarter, up 19% year on year. For the first half of FY27, volume rose 18% to 2.04 million cubic metres. Ready-mix concrete is used in construction projects where builders need a measured mix delivered to the site.

The company added 3.4 million tonnes per annum (MTPA) of cement capacity during the quarter. A new 2.4 MTPA grinding unit at Salai Banwa in Uttar Pradesh began operations. Bulk Cement Corporation (India) Limited, an ACC subsidiary, commissioned a blending unit at Kalamboli in Maharashtra, adding 1 MTPA of cement capacity.

The new facilities will help ACC supply cement to markets in northern and western India. Their financial benefit will depend on demand, transport costs and how much of the added capacity the company can sell.

India’s cement industry remains closely linked to housing, roads, railways and other construction work. Government spending on infrastructure is a key source of demand. Central government capital expenditure rose 18% year on year to Rs 5.1 lakh crore between April and August FY27, compared with Rs 4.3 lakh crore in the same period last year, according to the figures cited by ACC.

Industry estimates also point to continued growth. ICRA expects cement volumes to rise by 6% to 7% in FY27, after growth of 8.6% in FY26. The agency has warned that higher fuel and freight costs could reduce operating earnings per tonne, even if demand increases.

ACC reported that its green power share rose to 34.4% in Q2 FY27, compared with 30.3% a year earlier. Its kiln fuel cost increased to Rs 1.81 per 1,000 kilocalories from Rs 1.57, while gross power cost fell to Rs 5.84 per kilowatt-hour from Rs 5.95.

The company also reported a debt-free balance sheet, net worth of Rs 20,680 crore and cash and cash equivalents of Rs 578 crore. Its credit ratings remain AAA and A1+ from CRISIL.

A major corporate development is the proposed merger of ACC with Ambuja Cements. Shareholders of both companies approved the scheme at meetings held on 29 September 2026. More than 95% of votes cast by ACC shareholders and 99% of votes cast by Ambuja shareholders supported the proposal.

The merger now awaits the National Company Law Tribunal’s final sanction and other required approvals. The scheme is expected to simplify the corporate structure and improve coordination in manufacturing, logistics and market operations. Completion is expected during FY27, subject to approvals.

ACC’s sustainability score also improved. Its 2025 S&P Global Corporate Sustainability Assessment net score rose from 72 to 82, while its gross score remained at 89 out of 100. The company reported a water-positive status of 5.46 times in Q2 and said all manufacturing facilities continued to operate with zero liquid discharge.

For ACC, the next few quarters will show whether added capacity and a stronger sales mix can help offset high energy costs. The company has expanded its production base, but its earnings remain closely tied to cement demand, selling prices and the cost of moving goods to customers.

Must Read:

Adani Total Gas Reports 34% Revenue Growth in Q2 as Gas Costs Rise