ACC Reports 68% Drop in Q4 Net Profit Amid Rising Costs Despite Revenue Growth
ACC Q4 net profit plunges 68% on rising costs; revenue, volumes grow
Business Standard
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ACC, a major cement producer in India, reported a 68.27% decline in net profit for Q4 FY26, totaling ₹238.25 crore due to rising costs and currency depreciation. However, revenue increased by 16.87% to ₹7,146.18 crore, driven by higher sales volumes and a premium product mix.
- 01ACC's net profit fell 68.27% to ₹238.25 crore in Q4 FY26.
- 02Revenue rose 16.87% year-on-year to ₹7,146.18 crore.
- 03The company achieved its highest-ever quarterly sales volume of 11.9 million tonnes.
- 04Total expenses increased by 22.71% to ₹6,826.24 crore.
- 05The proposed amalgamation with Ambuja Cements is expected to complete by FY27.
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ACC, a leading cement manufacturer in India, reported a significant drop in net profit for the March quarter of FY26, with a 68.27% decline year-on-year, resulting in a profit of ₹238.25 crore. This downturn was attributed to rising costs, particularly in fuel and packaging, as well as the depreciation of the Indian rupee influenced by geopolitical tensions in West Asia. Despite these challenges, ACC's revenue grew by 16.87% to ₹7,146.18 crore, driven by a robust sales volume of 11.9 million tonnes, marking a 7.2% increase from the previous year. The company also noted a shift towards premium products, which now constitute 45% of trade sales, up from 41% in the same quarter last year. Operating earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 24.45% to ₹627 crore, with the EBITDA margin decreasing to 8.8% from 13.6% in Q4 FY25. Looking ahead, ACC anticipates continued cost pressures in the first half of FY27. The company is also progressing with its amalgamation with Ambuja Cements, pending necessary regulatory approvals, expected to finalize by FY27.
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The decline in profits may impact investor confidence and future funding for projects, while the increase in revenue and sales volume indicates strong market demand.
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