ACC

Q1 Results: Net profit plunges 61% YoY to ₹147 crore; revenue declines 8% amid margin pressure

Synopsis:

reported a sharp decline in Q1 FY27 earnings as lower revenue, higher low-margin MSA volumes with Ambuja Cements, and elevated input costs weighed on profitability. Ltd posted a 61% YoY decline in consolidated net profit to ₹147 crore for Q1 FY27, while revenue from operations fell 8% to ₹5,808 crore from ₹6,328 crore a year ago. The decline was driven by higher low-margin MSA volumes supplied to parent Ambuja Cements, planned maintenance shutdowns, and elevated fuel costs. Operating EBITDA dropped to ₹457 crore, with the EBITDA margin narrowing to 7.9% from 12.3% in the year-ago quarter. Despite margin pressure, trade market share improved to 81%, while premium products accounted for 44% of trade sales, up from 41% last year. Cement sales volume stood at 10 million tonnes, compared with 10.7 million tonnes in Q1 FY26. Meanwhile, the ready-mix concrete (RMX) business recorded 17% YoY volume growth to 0.97 million cubic metres, with EBITDA of ₹33 crore. On the strategic front, continued progress on its proposed merger with Ambuja Cements, with the NCLT application filed after receiving SEBI's no-objection certificate. The transaction is expected to conclude during FY27, subject to regulatory approvals. The company also strengthened its sustainability initiatives, increasing green power usage to 31% from 26% a year earlier. Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.