ACC Cement Reports Massive 460% Profit Jump in Q2 FY26, Driven by Land Sale Gain

ACC Cement announced a remarkable 460% year-on-year growth in its profit after tax (PAT) for the second quarter of fiscal year 2025-26, reaching Rs 1,119 crore. This substantial increase was largely attributed to a one-time gain of Rs 369.01 crore realized from the sale of land and related assets at its Thane facility.

Revenue from operations also demonstrated robust growth, rising 29.8% year-on-year to Rs 5,896 crore in Q2 FY26, compared to Rs 4,542 crore in the same period last fiscal. The company's operational performance showed strength, with operating EBITDA climbing 94% year-on-year to Rs 846 crore, up from Rs 436 crore in Q2 FY25. This also led to an improvement in the operating EBITDA margin, which expanded to 14.3% from 9.4% year-on-year.

Segment-wise, revenue from cement and ancillary services grew 26% to Rs 5,519 crore, while the ready-mix concrete segment saw a substantial 56% increase to Rs 453 crore. Cement sales volume rose to 10 million tonnes.

Impact: This strong financial performance, particularly the profit surge boosted by the land sale, could positively influence investor sentiment towards ACC Cement. While the one-off gain skews the profit numbers, the underlying operational improvements in revenue and EBITDA suggest underlying business strength. The market reaction will depend on how investors weigh the one-time gain against the operational growth. Rating: 7/10.

Difficult Terms: Profit After Tax (PAT): The net profit of a company after all taxes have been deducted. Year-on-Year (YoY): A comparison of financial data between the current period and the same period in the previous year. Revenue from Operations: The income generated from the primary business activities of a company. Operating EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization, from core operations. It indicates the company's operational profitability before financing and accounting decisions. Operating EBITDA Margin: Operating EBITDA expressed as a percentage of revenue, showing how efficiently a company generates profit from its sales. Ancillary Services: Additional services or products that are related to the main business. Ready-Mix Concrete (RMC): Concrete that is manufactured in a batching plant and then transported to the construction site.