ACC reported a 60.8% year-on-year decline in consolidated profit for Q1, with profit after tax falling to ₹147 crore compared with ₹375 crore in the same quarter last year. Sequentially, profit declined from ₹238 crore in Q4FY26. Diluted earnings per share stood at ₹7.8, compared with ₹19.9 a year earlier and ₹12.7 in the March quarter. According to The Economic Times, revenue from operations declined to ₹5,790 crore from ₹6,277 crore a year earlier, with the previous quarter reporting revenue of ₹7,146 crore. The company also reported a 3.35% decrease in total expenses to ₹5,639 crore for the quarter under review. Profit before tax in Q1 FY27 stood at ₹200 crore, down by 64.5% from ₹563 crore in Q1 FY26. Revenue from the cement business was down 9.73% to ₹5,376 crore in the June quarter, compared with ₹5,956 crore in the corresponding period a year ago.
Operating EBITDA fell significantly to ₹457 crore from ₹779 crore in Q1FY26 and ₹626 crore in Q4FY26. EBITDA margin narrowed to 7.9% from 12.3% a year earlier and 8.8% in the March quarter. EBITDA per tonne stood at ₹458, compared with ₹730 a year ago and ₹525 in the previous quarter. ACC's quarterly sales volume was down 13% to 10 million tonnes in Q1 FY27 from 11.5 million tonnes in Q1 FY26. The company attributed the decline in sales volume and operating EBITDA to the higher master supply agreement (MSA) with parent firm Ambuja Cements, along with planned maintenance at larger integrated plants. As per The Economic Times, profitability reflected the impact of planned maintenance of larger Integrated Units, higher Master Services Agreement with parent Ambuja Cement, even as the company continued to prioritise value-led growth and quality earnings.
Despite operational challenges, ACC saw improved trade sales with the company's trade share rising by 5 percentage points year-on-year to 81%, while premium products as a share of trade sales increased by 3 percentage points to 44%. According to The Economic Times, in Q1/FY27, premium products contributed 44% of trade sales, up from 41% in the corresponding period a year ago. The company began FY27 with resilient performance, helped by a higher share of trade volumes and continued premiumisation. ACC saw marginal sequential cost reduction through focused cost optimisation efforts, despite headwinds from higher fuel and logistics costs. The contribution of premium products within trade sales also improved by 3 percentage points to 44%, reflecting the company's continued focus on value-added products.
Power and fuel cost declined to ₹785 crore from ₹864 crore a year earlier, representing an 8.93% decrease. The company reported a 10.29% decline in cost of materials consumed to ₹1,002 crore. Freight and forwarding expenses stood at ₹1,047 crore, down 8.47% year-on-year. Power cost declined to ₹5.6 per kWh from ₹6.1 per kWh a year earlier and ₹5.8 per kWh in the March quarter. Kiln fuel cost rose to ₹1.67 per 1,000 kCal from ₹1.56 a year earlier and ₹1.65 in Q4FY26. Green power share increased to 31% from 26% a year earlier and remained flat sequentially. Primary lead improved to 254 km from 290 km a year earlier and 273 km in the previous quarter, while direct dispatch stood at 52% compared with 51% a year ago and 50% in Q4FY26.
The master supply agreement (MSA) between ACC and parent firm Ambuja Cements allowed higher share of sales to be routed through the arrangement during Q1, impacting profitability. As reported by The Economic Times, ACC has received the no-objection certificate (NOC) from SEBI for the proposed amalgamation with Ambuja on 4 June 2026, with an application filed with NCLT on 29 June 2026. The transaction is expected to be completed during FY27, subject to regulatory approvals. In a separate filing, ACC informed its board has approved the acquisition of 26% equity shares in Amplus Andhra Power Pvt Ltd for approximately ₹5.31 crore, with the proposed acquisition expected to be completed before October 30, 2026. The Adani Group under 'One Cement Platform' is strategically consolidating its assets under Ambuja Cements by merging other group companies ACC and Orient Cement into a single unified corporate structure. Over the industry outlook, ACC expects cement demand to remain 'soft at 5%' for FY27, with near-term demand potentially impacted by seasonal monsoon softness, geopolitical uncertainties, and input cost volatility.
