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ACC LtdQ4 FY26 earnings call

· All quarters

Summary generated by AI from the official transcript ACC Ltd filed with BSE on 10 May 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 FY26 annual sales volume of 73.7 million tonnes, up 16% year-on-year, with normalized EBITDA of INR6,539 crores and PAT of INR2,647 crores. Management attributed higher-than-expected costs during the quarter to freight, packing, fuel and branding expenses, along with slower-than-planned turnarounds at the acquired Sanghi and Penna assets. For FY27, management guided to consolidated volumes of around 80 million tonnes and a cost reduction target of INR250 per tonne from the reported quarterly peak.

Numbers mentioned

Annual sales volume: 73.7 million tonnes (FY26)

p. 3
achieving its highest ever annual sales volume of 73.7 million tonnes, up 16% Y-on-Y, year-on-year in that manner

Vinod Bahety, page 3 of the filed PDF · View the filing

Normalized EBITDA: INR6,539 crores (FY26)

p. 3
the EBITDA of INR6,539 crores, up 31% at INR887 per metric ton

Vinod Bahety, page 3 of the filed PDF · View the filing

PAT: INR2,647 crores (FY26)

p. 3
the PAT of INR2,647 crores, up 17%

Vinod Bahety, page 3 of the filed PDF · View the filing

Trade sales volume growth: 10% (FY26)

p. 3
Trade sales volume grew steady at 10%, while the premium cement accounted for 35% of the trade sales during the year

Vinod Bahety, page 3 of the filed PDF · View the filing

Cement capacity: 109 million tonnes (FY26)

p. 3
company's cement capacity increased to 109 million tonnes, supported by commissioning of 10.7 million tonnes of new grinding capacity

Vinod Bahety, page 3 of the filed PDF · View the filing

Cost per tonne: INR4,400 a tonne (FY26)

p. 5
we have achieved a figure of INR4,400 a tonne, which is almost 10% higher to our own target

Vinod Bahety, page 5 of the filed PDF · View the filing

Cost per tonne: INR4,500 a tonne (Q4 FY26)

p. 7
we are at now INR4,500 a tonne for the quarter of March

Vinod Bahety, page 7 of the filed PDF · View the filing

Clinker capacity: 69 million tonnes (current)

p. 7
we are sitting on 69 million tonnes of clinker capacity

Vinod Bahety, page 7 of the filed PDF · View the filing

FY26 capex: INR7,500-odd crores (FY26)

p. 8
FY '26 is closer to about INR7,500-odd crores

Vinod Bahety, page 8 of the filed PDF · View the filing

Green power share: 32% (Q4 FY26)

p. 4
My green power share increased almost 32% now in Q4 compared to 26% before

Vinod Bahety, page 4 of the filed PDF · View the filing

Sanghi capacity utilization: 57% (current)

p. 4
Sanghi still remains at around, say, at 57% on cement capacity utilization, while Penna is 46%

Vinod Bahety, page 4 of the filed PDF · View the filing

Premium cement share of trade sales: 36% (Q4 FY26)

p. 5
Almost 36% of my trade sales has been premium cement sales for Q4

Vinod Bahety, page 5 of the filed PDF · View the filing

Full year RMX EBITDA: INR300 crores (FY26)

p. 20
Around INR300 crores. So full year RMX EBITDA is a number of INR300 crores basically for the FY '26

Vinod Bahety, page 20 of the filed PDF · View the filing

Branding and advertisement cost per tonne: INR70 a tonne (FY26)

p. 17
we are closer to almost like INR700 a tonne basically -- INR70 a tonne basically -- yes, INR70 a tonne basically on the full year basis of '26

Vinod Bahety, page 17 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.

Consolidated volumes — around 80 million-odd tonnes · FY27

stated firmly by Vinod Bahety

p. 5
On our overall consol volumes, we are expecting it to grow in FY '28 -- '27 by almost, say, 8% to around 80 million-odd tonnes.

Vinod Bahety, page 5 of the filed PDF · View the filing

Industry volume growth — 5% to 5.5% · FY27

stated conditionally by Vinod Bahety

p. 5
we believe that given the headlines of inflation and weak monsoon, the industry may grow at around, say, 5% to 5.5%.

Vinod Bahety, page 5 of the filed PDF · View the filing

Total cement capacity — almost 119 million tonnes · end of FY27

stated firmly by Vinod Bahety

p. 6
We are expecting to hit capacity of almost 119 million tonnes by end of FY '27.

Vinod Bahety, page 6 of the filed PDF · View the filing

Cost per tonne — INR4,250 a tonne · FY27

stated firmly by Vinod Bahety

p. 19
So essentially, then it would mean INR4,250 as a target for '27.

Vinod Bahety, page 19 of the filed PDF · View the filing

Cost savings from raw material and green energy — INR150 to INR200 savings

stated conditionally by Vinod Bahety

p. 5
Therefore, I strongly believe INR150 to INR200 savings will come from these components.

Vinod Bahety, page 5 of the filed PDF · View the filing

FY27 capex — INR6,000 crores to INR6,500 crores · FY27

stated conditionally by Vinod Bahety

p. 8
for FY '27, we are keeping an estimate of almost INR6,000 crores to INR6,500 crores.

Vinod Bahety, page 8 of the filed PDF · View the filing

Cost reduction — INR250 a tonne, then another INR250 a tonne · this year and next year

stated firmly by Karan Adani

p. 16
cost, we are looking at roughly INR250 a tonne reduction this year and then another reduction of INR250 next year as well.

Karan Adani, page 16 of the filed PDF · View the filing

Long-term cost target — INR3,650

stated as an aspiration by Karan Adani

p. 16
But that does not mean that we don't have the runway to go to the earlier target that we have said.

Karan Adani, page 16 of the filed PDF · View the filing

New clinker capacity timeline (Mundra and Assam) — 24 to 28 months

stated firmly by Vinod Bahety

p. 20
Let's say 24 to 28 years, 28 months is what we are targeting.

Vinod Bahety, page 20 of the filed PDF · View the filing

Q1 FY27 cost — INR4,500 · Q1 FY27

stated conditionally by Vinod Bahety

p. 19
Almost like INR4,500, I would peg it for say, Q1.

Vinod Bahety, page 19 of the filed PDF · View the filing

Debottlenecking capacity target — 15 million tonnes

stated firmly by Karan Adani

p. 16
So those still continues. I think it's just timing, which will differ based on where we get the maximum return of the -- return on the investment.

Karan Adani, page 16 of the filed PDF · View the filing

Sanghi/Penna utilization improvement — increase utilization by at least 5% to 10% · FY27

stated as an aspiration by Vinod Bahety

p. 5
the target is to increase the utilization by at least 5% to 10% for these assets.

Vinod Bahety, page 5 of the filed PDF · View the filing

Project IRR — 18%

stated firmly by Karan Adani

p. 18
the project IRR has to be 18%. this is all equity money.

Karan Adani, page 18 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.

Bahety said March quarter volumes were muted but FY27 growth is supported by stabilizing acquired assets and new capacity commissioning.

Answered by Vinod Bahety

Asked by Navin Sahadeo: Whether volume growth is under pressure given FY27 guidance of 80 million tonnes against a softer industry outlook.

p. 6
we have the visibility in terms of, a, stabilizing the acquired assets of Sanghi, Penna, which I told you; b, the ongoing expansions, which will get commissioned in the next few months

Vinod Bahety, page 6 of the filed PDF · View the filing

Bahety said the primary focus remains organic and that the earlier FY28 capacity target may shift to around FY30.

Answered by Vinod Bahety

Asked by Navin Sahadeo: When will the company provide clarity on its next phase of capex and whether inorganic growth is being considered.

p. 7
the target plans of FY '28, it could move a year or 2, let us say, on a safer side, I would say that FY '30.

Vinod Bahety, page 7 of the filed PDF · View the filing

Bahety said INR4,500 per tonne was likely a peak and could decline INR150-200 absent further global cost escalation.

Answered by Vinod Bahety

Asked by Raashi Chopra: What was the average quarterly cost, and will costs decline if global prices stabilize.

p. 8
you will see a journey which will actually start coming down in passing quarters.

Vinod Bahety, page 8 of the filed PDF · View the filing

Bahety said price levels were sustained near INR254 a bag with modest sequential improvement, and further benefits would show in coming quarters.

Answered by Vinod Bahety

Asked by Indrajit Agarwal: Why realization moved little quarter-on-quarter versus peers despite higher trade and premium mix.

p. 9
What we have done is we have sustained the price levels at INR254 a bag compared to in December.

Vinod Bahety, page 9 of the filed PDF · View the filing

Bahety cited higher branding spend, repairs and maintenance including breakdowns at acquired assets, and elevated heat consumption as reasons for higher costs versus peers.

Answered by Vinod Bahety

Asked by Jashandeep Singh Chadha: Why Ambuja's cost structure rose more than peers, and rationale for planned shutdowns during high-volume quarters.

p. 10
there have been a few breakdowns also of the acquired assets of Penna's and all. So under the planning and also under out of planning, we will do it.

Vinod Bahety, page 10 of the filed PDF · View the filing

Karan Adani confirmed a partial reset in timeline, not in the target itself, citing execution shortfalls versus earlier commitments.

Answered by Karan Adani

Asked by Amit Murarka: Whether the softer FY27 guidance reflects a reset in the earlier ambition to double capacity and volume.

p. 18
Yes, partially, there is a reset. We are not moving away from the target. Yes, we are moving away from the time line.

Karan Adani, page 18 of the filed PDF · View the filing

Karan Adani listed discipline on L1 plant delivery, trade versus non-trade mix, raw material and energy cost reduction, and channel network improvement as the focus areas.

Answered by Karan Adani

Asked by Ritesh Shah: What prompted the reset and what are the five key monitorables for the coming year.

p. 17
One is L1 plants delivering to the market, the discipline on L1 plants delivering to the respective markets.

Karan Adani, page 17 of the filed PDF · View the filing

Karan Adani cited contractor selection issues, lack of an execution team at acquisition time, and incomplete engineering as reasons for delays, and breakdowns concentrated at acquired assets.

Answered by Karan Adani

Asked by Raghav Maheshwari: Why capex projects have been continually delayed and what is causing breakdowns at major plants.

p. 20
I think one is we did not choose the right contractor for execution.

Karan Adani, page 20 of the filed PDF · View the filing

Risks flagged

Higher freight, packing, fuel and branding costs increased overall cost per tonne.

p. 4
higher freight cost due to increase in the overall sale lead, primary and secondary both, increase in some of the states like the additional goods tax, especially in Himachal

Vinod Bahety, page 4 of the filed PDF · View the filing

West Asia geopolitical conflict disrupted packing costs in March.

p. 4
The higher packing costs, which we more so have seen that in the month of March, which has seen some abruptions given the West Asia war.

Vinod Bahety, page 4 of the filed PDF · View the filing

Slower-than-expected turnaround and utilization at newly acquired Sanghi and Penna assets.

p. 4
The turnaround initiatives have taken a little longer than the expected time lines.

Vinod Bahety, page 4 of the filed PDF · View the filing

Weak monsoon and inflationary pressure expected to soften cement demand in FY27.

p. 6
with the expected inflationary pressure, weak monsoon and cement demand is expected to remain a little soft

Vinod Bahety, page 6 of the filed PDF · View the filing

Industry unable to fully pass on cost increases to cement prices amid softer demand.

p. 8
despite the circumstances of costs gone up, unfortunately, industry is still under the relentless pressure and not able to pass on the price.

Vinod Bahety, page 8 of the filed PDF · View the filing

Breakdowns at acquired assets increased repairs and maintenance costs.

p. 14
there have been a couple of breakdowns also and therefore, which has increased my higher repairs and maintenance for the quarter of March number one.

Vinod Bahety, page 14 of the filed PDF · View the filing

Delayed capex execution due to contractor selection and incomplete engineering.

p. 21
a lot of these projects were started without full engineering being done in place.

Karan Adani, page 21 of the filed PDF · View the filing

Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.