ACC Limited Earnings Summary — Q1 FY2027
ACC Reports Q1 Profit Decline Amid Strategic Review and Temporary Plant Suspensions
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 18.7% sequentially in Q1 FY2027.
- Revenue of ₹5,808 Cr is 4.6% lower year-on-year.
- Revenue has compounded at 3.2% annualised over the last 10 quarters.
- Net profit of ₹147 Cr is 60.8% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -56.2% annualised across the period.
- Operating margin stands at 7.9% in Q1 FY2027.
- Operating margin compressed by 491 bps year-on-year.
- Over the last two years operating margin has contracted by 519 bps.
- PBT margin is 3.4%.
- Expenses grew 0.8% against revenue growth of -4.6%.
- Operating profit of ₹457 Cr is 41.3% lower year-on-year.
- Operating leverage has been under pressure recently.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 36/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 5,808 | 7,146 | 6,483 | 6,005 | 6,087 | 6,115 | 5,972 | 4,634 | 5,199 | 5,409 |
| Expenses | Stable | 5,351 | 6,520 | 5,783 | 5,159 | 5,309 | 5,284 | 4,856 | 4,198 | 4,520 | 4,572 |
| Operating Profit | Volatile | 457 | 627 | 700 | 846 | 778 | 830 | 1,116 | 436 | 679 | 837 |
| Operating Margin | Stable | 7.9% | 8.8% | 10.8% | 14.1% | 12.8% | 13.6% | 18.7% | 9.4% | 13.1% | 15.5% |
| Other Income | Volatile | 31 | 50 | 91 | 225 | 70 | 330 | 649 | 124 | 73 | 350 |
| Interest | Volatile | 27 | 27 | 26 | 29 | 30 | 14 | 28 | 33 | 33 | 67 |
| Depreciation | Stable | 261 | 279 | 306 | 279 | 255 | 265 | 260 | 242 | 235 | 237 |
| Profit Before Tax | Volatile | 200 | 370 | 460 | 763 | 563 | 882 | 1,477 | 284 | 484 | 883 |
| Tax | Volatile | 53 | 132 | 56 | -356 | 188 | 131 | 385 | 84 | 124 | -60 |
| Net Profit | Volatile | 147 | 238 | 404 | 1,119 | 375 | 751 | 1,092 | 200 | 360 | 943 |
| Net Margin | Volatile | 2.5% | 3.3% | 6.2% | 18.6% | 6.2% | 12.3% | 18.3% | 4.3% | 6.9% | 17.4% |
Key Takeaways
- Revenue fell 8.5% YoY to ₹5,740 crore, impacted by lower volumes and strategic suspensions of certain manufacturing facilities.
- Consolidated Net Profit dropped significantly to ₹147 crore, weighed down by exceptional items and higher power and fuel costs relative to revenue.
- Management approved the temporary suspension of manufacturing at select facilities to improve long-term operational efficiency and capital allocation.
- The company extended Inter-Corporate Deposits (ICDs) worth ₹3,900 crore to its holding company, Ambuja Cements Limited, at an 8% interest rate.
- ACC announced the acquisition of a 26% stake in Amplus Andhra Power Private Limited for ₹5.31 crore to secure renewable energy under a captive consumption framework.
- Ongoing legal proceedings continue regarding a ₹1,148 crore CCI penalty; the matter is currently being argued before the Supreme Court as of late July 2026.
- The proposed merger with Ambuja Cements is progressing, with no-objection certificates received from BSE and NSE and a joint application filed with the NCLT.
Management Guidance
Management is focusing on long-term value creation through the strategic review of production facilities. Operations at certain plants are considered 'temporary' suspensions aimed at enhancing competitiveness and optimizing the business structure for foreseeable market conditions.
Sentiment Shift
Deteriorating
A sharp decline in both top-line and bottom-line figures, coupled with plant suspensions and significant inter-corporate lending to the parent, indicates a volatile transition phase.
Outlook
The outlook is contingent on the successful amalgamation with Ambuja Cements and the outcome of Supreme Court litigation. While cost-saving measures and renewable energy shifts are underway, immediate performance remains pressured by lower realization and strategic shutdowns.
From the Annual Report (Key Quotes)
“The decision [to suspend operations] is aimed at improving operational efficiency, optimizing capital allocation and enhancing competitiveness.”
“The Management supported by legal opinion, has assessed that it is entitled to refund of all such Cess amounts paid since inception.”
“Pursuant to the approval of the shareholders... the Company has given loan in the nature of ICDs aggregating to ₹3,900 Crore to Holding Company, Ambuja Cements Limited.”
Official Quarterly Documents
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This summary is AI-generated from ACC Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.