This article first appeared on GuruFocus .
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EBITDA:INR 1,060 per metric tonne, a 32% YoY increase.
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EBITDA Margin:19.2%, up from 14.2% last year.
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Total Costs:Reduced by 5% YoY.
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Sales Volume:16.6 million tonnes, up 20% YoY.
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Revenue:INR 9,174 crore, up 21% YoY.
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Profit After Tax:INR 2,302 crore, up 364% YoY.
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Earnings Per Share:INR 7.2, up 267% YoY.
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Net Worth:INR 69,493 crore, increased by INR 3,057 crore for the quarter.
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Debt Status:Company remains debt-free.
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Green Power Share:Increased to 33% in Q2.
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Market Share:Increased by 1% to 16.6%.
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Premium Products Share:35% of total trade sales.
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Cost Reduction Target:Aiming for INR 4,000 per metric tonne by March '26.
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Capacity Expansion:Current capacity at 107 MTP, targeting 155 MTPA by FY28.
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Warning! GuruFocus has detected 6 Warning Signs with BOM:500410.
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Release Date: November 03, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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ACC Ltd ( BOM:500410 ) reported a significant increase in EBITDA, reaching INR 1,060 per metric tonne, a 32% year-over-year growth.
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The company achieved a record sales volume of 16.6 million tonnes, marking a 20% year-over-year increase, significantly outpacing the industry average growth of 4%.
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ACC Ltd ( BOM:500410 ) has successfully reduced total costs by 5% year-over-year, driven by lower kiln and fuel costs.
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The company is targeting a further reduction in total costs to INR 4,000 per metric tonne by the end of FY26, with plans to reduce it further to INR 3,650 by FY28.
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ACC Ltd ( BOM:500410 ) remains debt-free with a strong credit rating of Crisil AAA stable and short-term A1+.
Negative Points
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Despite the positive financial performance, the company faces challenges with increased working capital, which rose by INR 2,000 crore in the first half of the fiscal year.
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The integration of acquired assets like Penna and Sanghi has resulted in lower EBITDA contributions compared to the base capacity.
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There are concerns about the sustainability of the 20% volume growth, as the acquired assets mature and the base increases.
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The company has experienced delays in the commissioning of several projects due to external factors like torrential rains.
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ACC Ltd ( BOM:500410 ) faces challenges in maintaining high utilization rates, with current consolidated capacity utilization at around 65% to 67%.
Q & A Highlights
Q: Can you explain the reduction in other expenses per tonne in Q2 despite it being a maintenance quarter? A: The reduction in other expenses, which decreased from INR774 to INR712 per tonne, is due to improved synergies and efficiency gains. Maintenance has been conducted, and the benefits will be seen in upcoming quarters. Additionally, we have optimized our sales promotion and marketing strategies, focusing on more effective media channels. - Vinod Bahety, CEO
Q: What is causing the increase in working capital, and how do you plan to address it? A: The increase in working capital, approximately INR2,000 crore, is due to higher receivables from B2B sales, increased inventory of finished goods, and maintenance supplies. We have also built up coal inventory at favorable prices, which will help sustain low kiln costs. We have strong improvement plans for Q3 to address these factors. - Vinod Bahety, CEO
Q: Can you provide more details on the debottlenecking of clinker capacity? A: We plan to add three new kilns, increasing clinker capacity from 84 million tonnes to 96 million tonnes by FY28. This includes expansions at Bhatapara and potential developments at Sanghi, which has the potential to become a low-cost clinker producer. - Vinod Bahety, CEO
Q: How sustainable is the 20% volume growth, and how are you balancing pricing and volume as you move upmarket? A: We are targeting double-digit growth, supported by strong brand presence and capacity expansions. The balance between premium cement and overall volume growth will be maintained, with both market share and premium cement sales expected to progress well. - Vinod Bahety, CEO
Q: What is the expected impact of new technologies on operational efficiencies and plant age? A: New technologies will reduce heat consumption to 680 kilocalories and power consumption to less than 50 units per tonne of clinker. This will improve overall efficiency and reduce the average plant age by 40% by FY28. We are also reassessing the useful life of assets to optimize depreciation. - Vinod Bahety, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
