ACC Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript ACC Ltd filed with BSE on 03 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Ambuja Cements reported Q1 FY27 revenue of INR9,500 crores with operating EBITDA of INR1,589 crores, EBITDA margin improving 331 basis points to 16.7%, and PAT of INR660 crores. Management said trade volumes declined 2% and non-trade volumes fell 21% year-on-year as the company prioritized value over volume, while net operating cost fell to INR4,241 per metric ton, a reduction of INR206 per ton sequentially. The company temporarily suspended around 3.5 million tons of older manufacturing capacity for optimization and highlighted progress on capacity expansion projects at Dahej, Salai Banwa, Bhatinda, Jodhpur, Kalamboli and Warisaliganj.
Numbers mentioned
Revenue: INR9,500 crores (Q1 FY27)
p. 5
“Revenue of INR9,500 crores, operating EBITDA of INR1,589 crores”
Vinod Bahety, page 5 of the filed PDF · View the filing
Operating EBITDA: INR1,589 crores (Q1 FY27)
p. 5
“Revenue of INR9,500 crores, operating EBITDA of INR1,589 crores”
Vinod Bahety, page 5 of the filed PDF · View the filing
EBITDA margin: 16.7% (Q1 FY27)
p. 5
“EBITDA margin, which has improved 331 basis points to now 16.7%”
Vinod Bahety, page 5 of the filed PDF · View the filing
EBITDA per ton: INR931 (Q1 FY27)
p. 5
“EBITDA per ton of INR931 net cost reduced by INR206 per metric ton sequentially”
Vinod Bahety, page 5 of the filed PDF · View the filing
PAT: INR660 crores (Q1 FY27)
p. 5
“PAT of INR660 crores and net worth of almost INR72,000 crores”
Vinod Bahety, page 5 of the filed PDF · View the filing
Net worth: INR72,000 crores (Q1 FY27)
p. 5
“PAT of INR660 crores and net worth of almost INR72,000 crores”
Vinod Bahety, page 5 of the filed PDF · View the filing
Net operating cost: INR4,241 per metric ton (Q1 FY27)
p. 4
“Net operating cost reduced to INR4,241 per metric ton, a reduction of INR 206 PMT from the previous quarter.”
Vinod Bahety, page 4 of the filed PDF · View the filing
Trade sales share: 78% (Q1 FY27)
p. 4
“Trade sales share has actually improved from 74% to now 78% of our overall sales.”
Vinod Bahety, page 4 of the filed PDF · View the filing
Premium products share of trade sales: 34% (Q1 FY27)
p. 4
“Our premium strategy continues to gain traction with premium products comprising 34% of our trade sales.”
Vinod Bahety, page 4 of the filed PDF · View the filing
Clinker factor: 64% (Q1 FY27)
p. 4
“our clinker factor improved by approximately 3% to now 64%, while share of blended cement increased 85%”
Vinod Bahety, page 4 of the filed PDF · View the filing
Trade volume growth: -2% Y-o-Y (Q1 FY27)
p. 4
“In all, we have a 2% negative Y-o-Y growth on the trade and a 21% Y-o-Y negative growth on non-trade.”
Vinod Bahety, page 4 of the filed PDF · View the filing
RE power capacity: 973 megawatts (Q1 FY27)
p. 4
“Our RE power capacity is now at 973 megawatts, up almost 500 megawatts over past 1 year.”
Vinod Bahety, page 4 of the filed PDF · View the filing
WHRS capacity: 228 megawatts (Q1 FY27)
p. 4
“WHRS capacity stands at 228 megawatts, and this has helped us to reduce our unit of power cost from INR5.9 per kWH to almost INR4.9.”
Vinod Bahety, page 4 of the filed PDF · View the filing
Installed capacity: 109 million tons (Q1 FY27)
p. 5
“Today, Ambuja has evolved into a 109 million tons of capacity integrated cement platform.”
Vinod Bahety, page 5 of the filed PDF · View the filing
Capacity utilization: 65% (Q1 FY27)
p. 13
“Overall capacity is 65%. But if I look at so yes, ballpark 65% on a totality basis.”
Vinod Bahety, page 13 of the filed PDF · View the filing
Capex spent in Q1: INR1,500 crores to INR1,600 crores (Q1 FY27)
p. 12
“25% is there around closer to INR1,500 crores to INR1,600 crores, which we have invested.”
Vinod Bahety, page 12 of the filed PDF · View the filing
RMC EBITDA: INR33-odd crores (Q1 FY27)
p. 11
“in terms of the RMC EBITDA for the quarter, we are at about INR33-odd crores”
Vinod Bahety, page 11 of the filed PDF · View the filing
Green power units sold: 45 crore units (Q1 FY27)
p. 7
“45 crores units right, has been sold in first quarter out of our operating assets.”
Vinod Bahety, page 7 of the filed PDF · View the filing
Power sales revenue: INR140-odd crores (Q1 FY27)
p. 17
“The sales revenue, I can say, for example, ballpark around INR140-odd crores is the sales number for the quarter.”
Vinod Bahety, page 17 of the filed PDF · View the filing
Fly ash sales revenue: INR15 crores (Q1 FY27)
p. 34
“it is ~INR15 crores for the first quarter, and you are right, around INR50 crores for the last quarter.”
Vinod Bahety, page 34 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Net operating cost — INR4,250 per ton · FY27
stated firmly by Vinod Bahety
p. 4
“Thus, it puts us firmly in terms of our guidance to achieve INR 4,250 per ton for this financial year.”
Vinod Bahety, page 4 of the filed PDF · View the filing
Cost savings from efficiency initiatives — INR130 to INR150 per ton
stated conditionally by Vinod Bahety
p. 5
“In all, these initiatives are expected to deliver savings of almost INR130 to INR150 per ton, providing a strong visibility towards our cost leadership target and enhancing long-term competitiveness.”
Vinod Bahety, page 5 of the filed PDF · View the filing
Installed capacity — 119 million tons · end of FY27
stated firmly by Vinod Bahety
p. 5
“These projects will increase our installed capacity to 119 million tons by end of this financial year, and it will also help us to improve on our efficiency and overall costs.”
Vinod Bahety, page 5 of the filed PDF · View the filing
Trade volume growth — 8% · FY27
stated firmly by Vinod Bahety
p. 6
“And therefore, it gives me a good level of confidence to continue with our estimation and guidance of 8% growth, which we are targeting for this financial year.”
Vinod Bahety, page 6 of the filed PDF · View the filing
Green power share of consumption — 60% · FY28
stated firmly by Vinod Bahety
p. 8
“So, we are absolutely well on our plan in terms of green power to achieve 60% by FY28.”
Vinod Bahety, page 8 of the filed PDF · View the filing
Trade sales share — upwards of 75%
stated firmly by Vinod Bahety
p. 11
“It is going to be upwards of 75%”
Vinod Bahety, page 11 of the filed PDF · View the filing
AFR utilization — 10% to 15% · this fiscal year
stated firmly by Vinod Bahety
p. 16
“So immediately, right now, for example, in this fiscal year, we are targeting to hit almost 12% to 15%.”
Vinod Bahety, page 16 of the filed PDF · View the filing
AFR utilization long-term target — 25%
stated as an aspiration by Vinod Bahety
p. 16
“We have highlighted to you before that our target is to achieve 25% of the AFR down the line.”
Vinod Bahety, page 16 of the filed PDF · View the filing
Cost per ton — INR4,000 or below · end of FY28
stated firmly by Vinod Bahety
p. 23
“the way we have worked upon is the next year also, we want to bring another INR250 reduction in the cost so that by end of FY28, we reach up to INR4,000 or below in terms of cost per metric ton.”
Vinod Bahety, page 23 of the filed PDF · View the filing
Capacity utilization target — 70% to 75%
stated firmly by Vinod Bahety
p. 25
“I think our targeted utilization now that our focus on value and all in that background, I'm saying around 70% to 75%.”
Vinod Bahety, page 25 of the filed PDF · View the filing
Annual capacity addition — 8 million to 10 million tons per year · FY28 onwards
stated as an aspiration by Vinod Bahety
p. 14
“Generally, we expect every year 8 million to 10 million tons of capacity additions, and that's like how we will plan it out.”
Vinod Bahety, page 14 of the filed PDF · View the filing
Maratha clinker line commissioning — first quarter of FY28
stated firmly by Vinod Bahety
p. 18
“First yes, so like absolutely, first quarter of next year.”
Vinod Bahety, page 18 of the filed PDF · View the filing
FY27 capex — INR6,500 crores · FY27
stated firmly by Vinod Bahety
p. 10
“So, capex is overall, say, closer to INR6,500 crores and which is well between the growth and the efficiency capex, but that's like we are working on.”
Vinod Bahety, page 10 of the filed PDF · View the filing
Mundra clinker project timeline — 18 to 24 months
stated firmly by Vinod Bahety
p. 33
“Mundra is expected about, say, 18 to 24 months from here. So 2029 basically.”
Vinod Bahety, page 33 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said trade volumes are already showing 8% growth in July and reaffirmed the 8% growth guidance for the year, driven by brand equity and channel momentum.
Answered by Vinod Bahety
Asked by Navin Sahadeo: Will the strategy of prioritizing value over volume lead to muted volume growth for FY27 given Q1 losses versus prior guidance of ~80 million tons?
p. 6
“As we speak in the month of July, and I would not shy highlighting that we are already seeing an 8% improvement on the trade volumes.”
Vinod Bahety, page 6 of the filed PDF · View the filing
Management clarified the 34% figure was reported on a consumption basis, and if sold units are included, the share is already 48%, moving to 60% with additional capacity.
Answered by Vinod Bahety
Asked by Navin Sahadeo: On green power, why does incremental 13% capacity take the share from 34% to 60%?
p. 8
“Actually, if I consider the sold units, this 34% is actually reported on a consumption basis. I would have actually shared on an overall revenue plus consumption, then my green power share is almost 48%.”
Vinod Bahety, page 8 of the filed PDF · View the filing
Management said Orient is already well-utilized, Penna needs channel investment more than capital investment, and Sanghi is investing about INR600 crores in jetty expansion.
Answered by Vinod Bahety
Asked by Manish Somaiya: When will Sanghi, Penna, Orient reach normalized utilization and EBITDA levels, and what capex is required?
p. 8
“Sanghi, for example, what we are doing is now an investment of closer to, say, INR600-odd crores, which is planned in terms of the jetty expansion”
Vinod Bahety, page 8 of the filed PDF · View the filing
Management attributed it partly to differing NSP accounting/Incoterms treatment across companies and said price is a market-force outcome, while cost remains the controllable lever.
Answered by Vinod Bahety
Asked by Indrajit Agarwal: Why has ASP growth sequentially been one of the lowest in the industry despite higher trade sales?
p. 10
“So we actually put certain expenditures, which are netting off the NSP compared to some of the other industry players who may not do it, number one.”
Vinod Bahety, page 10 of the filed PDF · View the filing
Management said there are no such plans for a brand merger, only the announced company merger.
Answered by Vinod Bahety
Asked by Rajesh Ravi: Are there plans to merge the ACC and Ambuja brands into an Adani Cement brand?
p. 11
“So Rajesh, no such plans for the brand merger. Whatever the plan is for the company merger, which we have announced.”
Vinod Bahety, page 11 of the filed PDF · View the filing
Management attributed the decline to geopolitical disruptions affecting diesel and packing bag availability during the quarter, noting recovery to 8% trade growth in July.
Answered by Vinod Bahety
Asked by Raashi: Why did trade and non-trade volumes decline despite the focus on trade, and what was the regional dynamic?
p. 12
“basically, Y-o-Y, for example, this quarter had the severe most impact of all the geopolitical tensions in terms of the diesel availability, in terms of the issues on interim issues on the packing back availability”
Vinod Bahety, page 12 of the filed PDF · View the filing
Management attributed savings to fly ash sourcing efficiency, RE power cost reduction, and improved clinker factor, noting the improvement was net of an INR110 hit from West Asia escalation.
Answered by Vinod Bahety
Asked by Raashi: Where exactly did the INR206 per ton sequential cost decline show up?
p. 13
“By the way, is after absorbing the INR110, which ballpark, which we believe also has hit us from the West Asia escalation. So this INR206 plus INR110, if I have to gross it up, actually, my savings is INR316 actually.”
Vinod Bahety, page 13 of the filed PDF · View the filing
Management said the ICDs are within approved shareholder limits, carry an 8% coupon, and relate to the merger process consolidating entities onto one platform.
Answered by Vinod Bahety
Asked by Ritesh Shah: What is the rationale for the ICDs from ACC and Orient to the parent given available group-level cash?
p. 15
“we are in the advanced stages of now merger. I think so these ICDs are well within the approved limits of the shareholders and carries a coupon of 8%.”
Vinod Bahety, page 15 of the filed PDF · View the filing
Management said AFR is a current focus area, targeting 10-15% this fiscal year versus the longer-term 25% goal, citing progress each quarter.
Answered by Vinod Bahety
Asked by Ritesh Shah: How does the company plan to reach its 2030 TSR/AFR target of 23% from the current 7%?
p. 16
“AFR, for example, while we are I agree with you that we are on a lower side at, say, 7%, and that is one of our key focus area to improve the this component of KPI, and you will see a good progress in coming quarters.”
Vinod Bahety, page 16 of the filed PDF · View the filing
Management cited disruptions from diesel shortages and logistics issues in western and eastern regions that kept logistics costs elevated despite lead distance improvements.
Answered by Vinod Bahety
Asked by Kunal Shah: Given lead distance fell year-on-year, why has freight cost per ton stayed stable?
p. 25
“there was this disruption of the diesel shortages and more so like in some of the plants in Western side and all, basically, which hampered the distribution and therefore, escalated the escalation of the costs.”
Vinod Bahety, page 25 of the filed PDF · View the filing
Management explained that non-trade volumes at acquired assets were often at negative or marginal EBITDA, dragging performance, so they are prioritizing value over volume even at lower utilization.
Answered by Karan Adani
Asked by Satyadeep Jain: Why did the company shift more volumes to non-trade in recent years and why is it now moving back to trade despite only 65% utilization?
p. 31
“And most of the volume was happening at a negative EBITDA or a marginal EBITDA. And that was actually dragging the overall performance of the company down.”
Karan Adani, page 31 of the filed PDF · View the filing
Management said the ultimate goal is 100% in-house consumption, but grid connectivity for some plants is still being built out, creating a transition-phase mismatch.
Answered by Karan Adani
Asked by Satyadeep Jain: Why is the company selling RE power and fly ash externally instead of fully consuming internally given long-term agreements?
p. 31
“The ultimate goal is to consume everything in-house. It is a transition phase because we have as we as a lot of our systems come online.”
Karan Adani, page 31 of the filed PDF · View the filing
Risks flagged
Higher imported fuel prices and elevated freight costs pressuring industry profitability
p. 3
“while profitability across the industry remained under pressure from the higher imported fuel prices, elevated freight costs and geopolitical developments in West Asia.”
Vinod Bahety, page 3 of the filed PDF · View the filing
Additional maintenance cost from scheduled kiln shutdowns
p. 3
“We used this as an opportunity to perform scheduled maintenance for almost 12% of our kilns, absorbing additional cost of INR 50 per metric ton this quarter”
Vinod Bahety, page 3 of the filed PDF · View the filing
Potential further cost increases if geopolitical tensions continue
p. 9
“we are expecting, if at all, this kind of geopolitical situation continues, ballpark about say, INR100, for example, potential rise in the cost.”
Vinod Bahety, page 9 of the filed PDF · View the filing
Diesel and packing bag availability disruptions affecting distribution and costs
p. 25
“there was this disruption of the diesel shortages and more so like in some of the plants in Western side and all, basically, which hampered the distribution”
Vinod Bahety, page 25 of the filed PDF · View the filing
South region volumes consciously reduced due to low margins
p. 4
“So far as South is concerned, we have consciously reduced our lower margin volumes, while we continue to increase our channel network and focus on trade volumes”
Vinod Bahety, page 4 of the filed PDF · View the filing
Temporary suspension of older manufacturing capacity
p. 19
“So around six months basically.”
Vinod Bahety, page 19 of the filed PDF · View the filing
NSP and margins remain dependent on market forces beyond company control
p. 33
“Margin is a factor of a combination of NSP and cost. That leg of NSP, for example, I would say that it is still market forces driven.”
Vinod Bahety, page 33 of the filed PDF · View the filing
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