We are submitting the transcript of earnings call held on May 04, 2026, for the Audited Financial results of the Company for the quarter and year ended on March 31, 2026.
ACC · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Ambuja Cements (parent of ACC) reported FY26 annual sales volume of 73.7 million tonnes, up 16% YoY, with EBITDA of INR6,539 crores (up 31%) and PAT of INR2,647 crores (up 17%). However, the company faced significant cost pressures with per-tonne cost at INR4,400 for full year and INR4,500 for Q4—10% above its internal target of INR4,000. Cost escalation was attributed to higher freight, fuel, packing costs (worsened by West Asia conflict), and increased branding/advertising for premium cement push. The acquired Sanghi and Penna assets continue to underperform expectations with utilization at 57% and 46% respectively. Management guided for FY27 volume growth of 8% to ~80 million tonnes against expected industry growth of 5-5.5%, with focus on improving acquired asset utilization. Karan Adani committed to INR250/tonne cost reduction in both FY27 and FY28 (totaling INR500 over 2 years) while maintaining the long-term cost target of INR3,650/tonne. Capex plans are being recalibrated with disciplined capital allocation.
The company faces margin pressure from cost overruns it cannot fully pass on to customers amid soft demand, creating near-term earnings uncertainty. However, management's explicit cost reduction roadmap and focus on stabilizing underperforming acquired assets could improve profitability in FY27-28. The reset in growth ambitions (capacity target pushed to FY30) suggests more conservative capital deployment.