ACC Ltd Achieves Record Q4 Revenue of ₹7,146 Cr as Merger Nears

Record Q4 Performance Amid Strategic Moves

ACC Limited has reported its financial results for the fourth quarter and full fiscal year ending March 31, 2026, highlighting a record performance. The company achieved its highest-ever quarterly sales volume, reaching 11.9 million tonnes (MnT), and posted a record quarterly revenue of ₹7,146 crore.

For the full fiscal year 2026, ACC's normalised EBITDA increased by 22% year-on-year to ₹2,950 crore. Consolidated Profit After Tax (PAT) for the year was ₹1,304 crore. ACC also announced a dividend of ₹7.5 per share for FY'26.

Although Q4 FY'26 revenue grew by a strong 17% compared to the previous year, the operating EBITDA for the quarter saw a decrease, coming in at ₹627 crore against ₹830 crore in Q4 FY'25. Looking ahead, capacity expansion projects are advancing, with plans to add 3.4 million tonnes per annum (MTPA) in the first quarter of FY'27.

Merger and Capacity Expansion Drive Strategy

These results demonstrate ACC's operational capabilities in achieving record sales and revenue, even with industry pressures. The ongoing merger with Ambuja Cements, slated for completion by FY'27, is a key strategic development. This merger aims to create a larger, integrated cement business with increased scale and substantial cost synergies. Management's confidence in future demand is further indicated by planned capacity expansions, positioning ACC to capitalize on growth in India's infrastructure and housing markets.

Adani Group's Cement Consolidation

ACC is a key part of the Adani Group's expanding cement portfolio, which also includes Ambuja Cements. Since acquiring Holcim's stake in 2022, the Adani Group has concentrated on integrating its cement assets to achieve greater scale and operational efficiency. The merger with Ambuja Cements is central to this strategy, aiming to streamline the corporate structure, eliminate redundancies, and use combined logistics and procurement for better cost efficiency. The broader Indian cement industry is also undergoing consolidation, with major companies like UltraTech Cement and Shree Cement similarly investing in capacity growth and operational improvements.

Impact of Merger and Expansion

The merger process is set to result in a more unified corporate structure under a combined Ambuja Cement entity, offering shareholders a streamlined investment. The integration is designed to unlock significant cost synergies, which could lead to enhanced profitability for the consolidated business. ACC's capacity expansions will also support the Adani Group's broader ambitions for cement production scale. Operational integration is expected to foster a more efficient supply chain and increase bargaining power across the group.

Key Risks to Monitor

• Input Cost Pressures: Fluctuations in fuel, diesel, and packaging material costs, worsened by currency movements and regional geopolitical issues, are expected to pressure margins in the first half of FY'27.
• Demand Outlook: Forecasts for FY'27 suggest moderate demand growth, around 5%. Below-normal monsoons could negatively impact demand in the agricultural and housing sectors, posing a risk to projections.
• Merger Integration: While the merger is moving forward, the successful integration of operations and systems post-completion will be critical to realizing the anticipated synergies and benefits.

Industry Landscape and Peers

ACC operates within a competitive landscape alongside peers like UltraTech Cement and Shree Cement. The cement industry is marked by substantial capacity additions planned to meet anticipated demand growth of 6-8% for FY'27. However, all major companies are contending with similar challenges, including increasing input costs and the necessity for operational efficiency to sustain profitability.

Investor Watchlist

Investors will be closely watching several key areas:

• The finalization and regulatory approvals for the merger with Ambuja Cements.
• The effectiveness of cost-reduction measures and the outlook for fuel prices in relation to ACC's profitability.
• Broader industry demand trends for FY'27, especially the impact of monsoon forecasts and government infrastructure spending.
• The successful integration and performance of new capacity expansions.