ACC (ACC) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly cement sales of 16.6 million tons in Q2 FY'26, up 20% year-over-year, with H1 FY'26 volumes at 35.0 million tons, also up 20% year-over-year, significantly outpacing industry growth.

• Revenue rose 21% year-over-year to INR 9,174 crore, the highest ever for a Q2, with premium products comprising 35% of trade sales.

• Profit after tax surged 364% year-over-year to INR 2,302 crore in Q2 FY'26, aided by a significant income tax provision reversal; EPS rose 267% to INR 7.2.

• Company remains debt-free with net worth at INR 69,493 crore and maintains healthy cash flows to support ongoing capex.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025.

Financial highlights

• EBITDA for Q2 FY'26 was INR 1,761 crore, up 58% year-over-year, with EBITDA margin improving to 19.2%.

• Cost per ton reduced by INR 238 year-over-year, with total cost at INR 4,200 per ton at September exit.

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

• Working capital increased by INR 2,000 crore due to higher receivables, inventory, and coal stock.

• CapEx for the quarter was INR 1,400 crore, with a full-year run rate of INR 8,000 crore.

Outlook and guidance

• Targeting cost per ton reduction to INR 4,000 by March 2026 and INR 3,650 by March 2028.

• Capacity expansion plan revised to 155 million tons cement and 96 million tons clinker by FY 2028, to be achieved via debottlenecking at $48 per ton CapEx.

• Double-digit volume and revenue growth expected to continue, supported by capacity additions and premium product focus.

• Green power share to reach 60% by FY 2028, reducing power cost per unit from INR 6 to INR 4.5.

• EBITDA per ton target of INR 1,500 by FY 2028.