ACC Q2 Sales Volume Hits 9.7 Million Tonnes; Revenue at Rs 5,689 Crore
ACC Limited reports Q2 FY27 sales volume of 9.7 million tonnes and revenue of Rs 5,689 crore. Check the full financial breakdown here.
ACC Limited has announced its financial results for the second quarter of FY27, reporting a cement sales volume of 9.7 million tonnes. While the company maintained a strong presence in the market, the figures reflect a slight dip compared to the previous year's performance. The company's revenue from operations for the quarter stood at Rs 5,689 crore.
Financial Breakdown: Revenue and Profits
The company's financial health showed some volatility when compared to the same quarter last year (Q2 FY26). Revenue from operations saw a decline from the Rs 6,005 crore reported in the previous year. Similarly, the operating EBITDA dropped to Rs 401 crore, down from Rs 846 crore in the year-ago quarter.
The impact was most visible in the profit after tax (PAT), which stood at Rs 93 crore for Q2 FY27. In contrast, the profit for Q2 FY26 was significantly higher at Rs 1,119 crore. However, it is important to note that the previous year's profit was bolstered by a reversal of an income tax provision amounting to Rs 659 crore and interest of Rs 205 crore on an income tax refund.
Key Operational Metrics
- Operating Margin: The operating margin for the quarter was 7 per cent, compared to 14.1 per cent in the corresponding quarter last year.
- EBITDA per Tonne: The company recorded an EBITDA of Rs 414 per tonne.
- Trade Share: There was a positive shift in trade share, which increased by 7 percentage points year-on-year to reach 78 per cent.
- Premium Products: High-end premium products now account for 47 per cent of the total trade sales.
Product Mix and Capacity Expansion
ACC has successfully shifted its focus toward more sustainable and value-added products. The share of blended cement improved to 85 per cent, up from 78 per cent in the same period last year. Additionally, the company saw a significant jump in ready-mix concrete volumes, which rose by 19 per cent year-on-year to hit 1.07 million cubic metres.
To fuel future growth, ACC has expanded its production capabilities. The company commissioned 3.4 million tonnes per annum (MTPA) of additional cement capacity. This was achieved through:
- A 2.4 MTPA greenfield grinding unit located at Salai Banwa in Uttar Pradesh.
- An additional 1 MTPA capacity increase at Kalamboli in Maharashtra.
The Road Ahead: Market Outlook and Mergers
Vinod Bahety, the Whole-time Director and CEO of ACC, described the performance in Q2 and the first half of FY27 as "resilient," attributing the results to a better sales mix and higher volumes of premium products. He noted that industry demand has remained supportive and is expected to gain further momentum following the monsoon season.
The company anticipates that demand will be driven by three primary factors:
- Growth in the housing sector.
- Increased infrastructure development.
- Rising capital expenditure.
ACC believes that improving pricing momentum will help offset the challenges posed by high fuel and energy costs. On the corporate front, the company confirmed that its proposed amalgamation with Ambuja Cements is moving forward. Following approval from shareholders, the process will now proceed to the National Company Law Tribunal (NCLT) for final sanction.