ACC

Q1 Results: Net profit tumbles 61% YoY to ₹147 crore; revenue declines 8%

Synopsis:

reported a weak start to FY27, with first-quarter earnings hit by lower revenue, a higher share of low-margin MSA supplies to Ambuja Cements, and rising input costs, putting pressure on margins. reported a 61% year-on-year decline in consolidated net profit to ₹147 crore for the June quarter of FY27. Revenue from operations slipped 8% to ₹5,808 crore, compared with ₹6,328 crore in the corresponding quarter last year. The earnings decline was primarily due to increased low-margin MSA dispatches to parent Ambuja Cements, planned maintenance at key plants, and higher fuel and energy costs. Operating EBITDA fell to ₹457 crore, while the EBITDA margin contracted to 7.9%, compared with 12.3% in the year-ago quarter. Despite the pressure on profitability, the company expanded its trade market share to 81%, while premium products contributed 44% of trade sales, up from 41% a year earlier. Cement dispatches stood at 10 million tonnes, against 10.7 million tonnes in Q1 FY26. The ready-mix concrete (RMX) business delivered a strong performance, with volumes rising 17% YoY to 0.97 million cubic metres and EBITDA reaching ₹33 crore. On the strategic front, made further progress on its proposed amalgamation with Ambuja Cements, filing its application with the NCLT after receiving SEBI's no-objection certificate. The merger is expected to be completed during FY27, subject to the necessary regulatory approvals. The company also advanced its sustainability goals, with green power usage increasing to 31%, up from 26% in the corresponding quarter last year. Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.