ACC reported a significant decline in profitability for the third quarter of FY26, with net profit falling 63% year-on-year to ₹404 crore, according to reports from Stock Market News. Despite the profit decline, the cement major demonstrated resilience in revenue generation, with total revenue jumping 21.7% to ₹6,391 crore during the same period. The company achieved its highest-ever quarterly sales volume during the period, aided by stronger demand and an improved product mix.
EBITDA increased 53.5% year-on-year to ₹608 crore, while EBITDA margin expanded significantly to 9.5% from 7.5% a year earlier, reflecting operating leverage and a higher share of trade, premium cement and ready-mix concrete (RMX). The company's revenue growth was supported by higher volumes and improved product mix, with the cement maker achieving its highest-ever quarterly sales volume during the period. According to The Economic Times, excluding a non-recurring government grant of ₹637 crore in Q3/9M FY25, the normalised EBITDA margin stood at 9% for Q3FY25 and 10.5% for 9MFY25.
The profit decline was partly driven by a one-time impact of ₹49.5 crore related to the implementation of new labour codes, which led to higher gratuity and leave encashment provisions. Whole-Time Director and CEO Vinod Bahety noted that higher trade and premium sales, along with continued RMX expansion, supported better realisations compared with industry peers, even as the company focused on addressing key cost levers such as power, fuel efficiency and logistics.
ACC's Q3 results reflect the ongoing challenges in the cement industry, where profitability has been affected by rising input costs and competitive pressures. The company continues to navigate these market conditions while maintaining its position as a significant player in India's cement sector. The revenue growth indicates resilience in demand despite the profitability challenges faced by the company, with the company achieving its highest-ever quarterly sales volume during the period. According to The Economic Times, the company's concrete business footprint increased through the addition of 14 plants year-on-year, now 117 plants spread over 45 cities. Volume rose 36% at 0.97 Mn m3 year-on-year, with EBITDA at ₹72 crore, surging 56% year-on-year.
During the quarter, ACC announced the proposed amalgamation with Ambuja Cements to create a unified 'One Cement Platform', aimed at improving operational efficiency, capital allocation and long-term growth, subject to statutory approvals. The company reiterated that it remains debt-free, with a net worth of ₹20,326 crore, and continues to hold AAA credit ratings from CRISIL and CARE. Shares of ACC Ltd were trading at ₹1,681.60 on the NSE on Wednesday, down 0.37% following the earnings announcement.
