ACC (ACC) Q2 25/26 earnings summary

Executive summary

• Achieved record cement sales volume of 16.6 million tons in Q2 FY'26, up 20% year-on-year, significantly outpacing industry growth.

• Profit after tax surged 364% year-on-year to ₹2,302 crore, aided by a one-time tax write-back and income tax provision reversal.

• Market share increased by 1% to 16.6%, with premium products contributing 35% of trade sales.

• Integration of acquired assets (Penna, Orient, Sanghi) progressing well, driving profitability and operational synergies.

• Board approved unaudited financial results for Q2 and H1 FY26, with statutory auditor review completed.

Financial highlights

• Revenue rose 21% year-on-year to ₹9,174 crore in Q2 FY'26, the highest ever for a Q2.

• Quarterly EBITDA stood at ₹1,761 crore, up 58% year-on-year, with EBITDA margin at 19.2%.

• Earnings per share for the quarter at ₹7.2, up 267% year-on-year; H1 FY'26 EPS (diluted) at ₹10.55, up 131%.

• Exceptional tax write-backs and refunds contributed to higher net profit, including a reversal of ₹658.42 crore and a cash refund of ₹827.96 crore.

• Company remains debt-free with AAA (stable) / A1+ credit ratings and strong cash flows.

Outlook and guidance

• Targeting cement capacity of 155 million tons and clinker capacity of 96 million tons by FY 2028, with debottlenecking at $48/ton CapEx.

• Cost per ton targeted to reduce from ₹4,200 (Q2 exit) to ₹4,000 by March 2026, ₹3,800 by March 2027, and ₹3,650 by March 2028.

• Green power share expected to reach 60% by FY 2028, reducing power costs by ₹1.5/unit.

• Double-digit volume and revenue growth expected to continue, with premium cement and market share expansion as key drivers.

• Management expects continued benefits from government incentives and tax credits, with ongoing legal matters not expected to materially impact operations.