ACC Q3 Results: Consolidated Profit Plummets 63% YoY to Rs 404 Crore, Revenue Increases by 22%
ACC’s recent financial report for Q3 has revealed significant shifts in its performance, making it a crucial subject for investors and market analysts alike.
– Net Profit Decline: ACC reported a staggering 63% year-on-year (YoY) drop in consolidated net profit to Rs 404 crore for the December quarter, down from Rs 1,092 crore a year prior.
– Revenue Growth: Despite the profit decline, the company’s revenue surged by 22%, reaching Rs 6,391 crore in Q3FY26, compared to Rs 5,252 crore in the same period last year.
– Sequential Profit Drop: The profit after tax (PAT) experienced a 64% sequential decline, dropping from Rs 1,119 crore in Q2FY26, although revenue showed a 7% increase quarter-on-quarter, climbing to Rs 5,969 crore from July to September FY26.
– Normalized EBITDA Margin: Excluding a one-time government grant of Rs 637 crore in Q3/9M FY25, the normalized EBITDA margin was reported at 9% for Q3FY25 and 10.5% for the first nine months of FY25.
Operational Highlights
– RMC Expansion: ACC bolstered its concrete business footprint by adding 14 plants YoY, bringing the total to 117 plants across 45 cities. The volume for ready-mix concrete (RMC) surged 36%, hitting 0.97 million m³ YoY, with an EBITDA of Rs 72 crore, marking a 56% increase YoY.
– Cement Pricing: The company noted that cement prices rose by Rs 11 per bag, outpacing many peers. This achievement contributed to a record quarterly RMC volume.
– Debt-Free Status: ACC’s net worth stands at Rs 20,326 crore, having increased by Rs 389 crore during the quarter, maintaining a debt-free status.
Strategic Developments
In its filing, ACC emphasized the advantages of the merger with Ambuja Cements, which has established a unified One Cement Platform intended for long-term growth and value creation. The initiative aims to streamline operations and enhance cost leadership through group-wide synergies in procurement, manufacturing, and distribution.
Management Insights
Vinod Bahety, Whole-Time Director & CEO, commented on the company’s performance, stating that ACC has maintained a strong growth momentum, achieving record quarterly volumes. He attributed this success to increased sales in trade and premium cement, alongside robust expansion in RMC, which improved revenue realizations compared to industry competitors.
Bahety also noted that the transition to the One Cement Platform is anticipated to expedite efficiency and growth. This initiative will provide deeper synergies once regulatory approvals are obtained. He mentioned a digitalization agenda under the CiNOC program, designed to significantly enhance productivity and operational optimization.
Conclusion
ACC’s Q3 results signal a complex picture: while net profit saw a dramatic decrease, the significant revenue growth and operational milestones paint a promising path for future performance. As the company continues to innovate and expand its market presence, it remains essential for investors and analysts to monitor these developments closely and consider the ongoing impacts of strategic initiatives and market conditions.