ACC Reports Strong FY26 Results Amid Merger Progress and Legal Scrutiny

ACC Limited announced its audited financial results for the fiscal year ended March 31, 2026. The company reported consolidated revenue of ₹25,961.85 crore and a profit after tax of ₹2,402.27 crore. Standalone revenue for the period stood at ₹25,566.33 crore with a profit after tax of ₹2,424.56 crore.

Financials and Dividend Approval

The Board of Directors has approved the company's audited financial results for FY26. ACC Limited has recommended a dividend of ₹7.50 per equity share for the fiscal year, subject to shareholder approval at the upcoming Annual General Meeting (AGM).

The company also appointed M/s. P.M. Nanabhoy & Co. as Cost Accountants and M/s. Grant Thornton Bharat LLP as Internal Auditor for FY 2026-27. The audited financial results received an unmodified opinion from statutory auditors M/s. SR BC & Co. LLP.

The 90th AGM is scheduled for June 26, 2026, with June 12, 2026, designated as the record date for dividend entitlement. Dividend payments are expected on or after July 1, 2026.

Why This Matters

This annual financial update from ACC Limited provides a clear picture of its performance in FY 2025-26, including profitability and a shareholder reward via dividend. However, this performance occurs against a backdrop of complex legal battles with the Competition Commission of India (CCI) and the ongoing regulatory process for its amalgamation with Ambuja Cements. These external factors will heavily influence future value.

Company Background

ACC, now part of the Adani Group, has a long history in India's cement sector since its inception in 1936. The company, along with its parent Ambuja Cements, is undergoing a significant restructuring. In December 2025, Ambuja Cements' board approved a scheme to merge ACC Ltd and Orient Cement Ltd into itself, aiming to create a unified pan-India cement platform. This move, announced after Adani Group's acquisition of Holcim's Indian assets in May 2022, seeks to streamline operations and unlock synergies. The appointed date for ACC's merger into Ambuja was January 1, 2026, with the overall process expected to take about a year, subject to approvals.

Simultaneously, ACC faces persistent legal challenges. The Competition Commission of India (CCI) has been investigating ACC, Ambuja, and other cement makers for alleged cartelisation and anti-competitive practices since at least 2016. Although CCI had imposed substantial fines previously, these matters are currently under appeal before the Supreme Court and NCLAT.

Key Developments for Shareholders and Operations

• Shareholders can expect a dividend payout of ₹7.50 per share for FY 2025-26, pending final approval.
• The company's financial reporting and auditing processes for FY26 have been completed with an unmodified auditor opinion.
• The ongoing amalgamation with Ambuja Cements, if approved, will eventually lead to ACC ceasing to exist as a separate listed entity.
• ACC's operational integration into the broader Adani Cement strategy is expected to continue, aiming for enhanced efficiencies.
• The company will continue to engage with regulatory bodies and courts regarding the CCI litigation.

Risks to Watch

• Regulatory and Legal Hurdles: The proposed amalgamation scheme with Ambuja Cements requires multiple statutory and regulatory approvals, including from the BSE, NSE, and NCLT. Delays or adverse decisions could impact the integration timeline.
• Competition Commission of India (CCI) Litigation: Ongoing court cases concerning alleged cartelisation and price-fixing remain a key challenge. While ACC maintains it acts in compliance with competition laws, adverse outcomes could lead to substantial penalties and reputational damage.
• Merger Ratio Valuation: Although the merger ratios are approved by the boards, any perceived unfairness in the share swap ratio for ACC shareholders could lead to market dissent or shareholder challenges.

Peer Comparison

ACC operates in a highly competitive Indian cement market. Its primary rival, UltraTech Cement, is India's largest producer with a capacity of 156.66 MTPA and aims for 200 MTPA by FY27. The Adani Group's consolidated entity, post-merger of Ambuja and ACC, is projected to hold about 16.6% market share, significantly less than UltraTech's 28%. Other key competitors include Shree Cement and Dalmia Bharat, who are also actively expanding capacity and market reach.

Key Financial Metrics

• The company's consolidated revenue from operations was ₹25,961.85 crore for FY2026, compared to ₹19,958.92 crore in FY2024.
• Consolidated profit after tax stood at ₹2,402.27 crore in FY2026, contrasted with ₹2,650 crore in FY2025.
• ACC's dividend yield was approximately 0.52% based on a ₹7.50 dividend and a market price around ₹1436 in April 2026.

What to Track Next

• Monitor the progress of statutory and regulatory approvals for the Ambuja Cements amalgamation scheme.
• Follow developments in the Supreme Court and NCLAT regarding the CCI litigation.
• Observe shareholder sentiment and any announcements related to the dividend payout process.
• Track the integration progress and synergy realization post-amalgamation with Ambuja Cements.
• Watch for any new capacity expansion plans or strategic acquisitions by the Adani Group's cement division.