ACC Reports 92% Drop in Q2 Net Profit to ₹93 Crore Amid Higher Costs and Lower Sales

Adani Group cement company ACC reported a 92% decline in net profit to ₹93 crore for the September quarter, driven by higher overall expenses, a dip in sales volume, and a high base effect from the previous year. Revenue from operations also saw a 5% decrease year-on-year.

ACC, an Adani Group company, has reported a 92 percent decline in its net profit for the September quarter, coming in at ₹93 crore compared to ₹1,119 crore in the corresponding period of the previous year. The company attributed the sharp fall to higher costs and lower sales, alongside the fact that the year-ago profit included an income-tax provision reversal of ₹659 crore.

Revenue from operations for the quarter stood at ₹5,666 crore, marking a 5 percent decrease from ₹5,969 crore in the year-ago period. Overall expenses rose to ₹5,602 crore compared to ₹5,457 crore previously. Consequently, EBITDA more than halved, dropping to ₹401 crore from ₹846 crore. However, the company noted that its share of green power usage rose to 34 percent year-on-year, up from 30 percent last year.

Sales volume for the quarter declined to 9.7 million tonnes from 10 million tonnes, a shift influenced by the master supply agreement (MSA) with its parent entity, Ambuja Cements. Realisation per tonne also decreased to ₹414 from ₹849. Vinod Bahety, Whole-Time Director and CEO of ACC, stated that the reported numbers are not directly comparable due to the impact of the MSA, adding that the underlying business momentum remains encouraging and supported by trade partners.

During the quarter, ACC commissioned an additional 3.4 million tonnes per annum (mtpa) of cement capacity at Salai Banwa and Kalamboli to strengthen its presence in key markets. The cement industry during the period faced headwinds from geopolitical uncertainties, monsoon impacts, seasonal shutdowns, and elevated energy costs alongside domestic coal availability constraints. Despite these challenges, the company stated that the medium-term demand outlook remains supported by infrastructure investments, urbanisation, rural housing, and industrial activity.

To support operational reliability, ACC recently signed a multi-year ABB Motion OneCare service agreement with ABB for its Jamul cement plant in Chhattisgarh. The framework includes scheduled reconditioning, digital monitoring, and energy appraisals.

Looking ahead, ACC continues to focus on operational efficiency, premiumisation, logistics optimisation, and disciplined capital allocation. The company also noted that its proposed merger with Ambuja Cements is expected to enable closer coordination across their combined manufacturing, logistics, and market networks.

"ACC's quarterly performance highlights the short-term pressures of structural reorganizations, such as master supply agreements, alongside rising operational and energy costs in the manufacturing sector. However, the company's continuous investments in capacity expansion, logistics optimisation, and green power usage indicate a long-term strategic focus. For businesses operating in heavy industries, balancing margin pressures with disciplined capital allocation and operational efficiency remains crucial during cyclical market phases." — Dr. Shishir Gupta, Founder & CEO, StartupLanes