ACC's September-Quarter Profit Falls 92% as Cement Costs and Sales Pressure Earnings

Indian cement producer ACC reported a steep fall in profit for the quarter ended September 30, 2026, as weaker sales and higher operating costs weighed on earnings. The year-on-year comparison was also amplified by a substantial one-time tax benefit recorded in the corresponding quarter of 2025.

ACC's consolidated profit after tax was approximately ₹93 crore in the second quarter of financial year 2026-27, down from ₹1,119 crore a year earlier, a decline of about 92%. Consolidated revenue from operations decreased roughly 5% to ₹5,666 crore from ₹5,969 crore. The results were reported on October 27.

The headline profit drop should not be interpreted entirely as a deterioration in recurring operations. The year-earlier result included a reversal of tax provisions relating to previous periods, which lifted reported earnings. In the latest quarter, the company also recorded an exceptional charge for employee termination benefits. These accounting effects make a direct comparison of the two reported profit figures less representative of the underlying business trend.

The operating environment was difficult nonetheless. ACC cited higher fuel and energy costs, constrained domestic coal supplies, seasonal monsoon-related demand weakness and interruptions at some facilities. Its reported cement sales volume was about 9.7 million tonnes, lower than the corresponding period a year earlier.

On a standalone basis, which excludes the results of consolidated subsidiaries, ACC reported profit after tax of about ₹101 crore and revenue from operations of ₹5,612 crore. These standalone figures differ from the consolidated amounts and should not be mixed when calculating growth rates.

The company also commissioned a cement grinding unit with annual capacity of 2.4 million tonnes at Salai Banwa in Uttar Pradesh and added 1.0 million tonnes of capacity at Kalamboli in Maharashtra. Additional production capacity can support future volumes, but does not by itself establish that demand or profitability will improve.

ACC shareholders approved a proposed merger with parent Ambuja Cements in September. The transaction remains subject to the required statutory and tribunal approvals; it is not a completed merger.

Management expects cement demand to strengthen after the monsoon period, supported by housing and infrastructure investment. That is an outlook rather than a confirmed outcome. The next results will help show whether the company can offset energy-cost pressures through higher volumes, better pricing and changes in its sales mix.