ACC expects cost pressures to continue in H1 FY27

ACC Ltd, part of the Adani Group, said fourth quarter of FY2026 was impacted by cost pressures due to the West Asia Conflict. The company also expects a softer cement demand due to weaker monsoon.

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Cost pressures from fuel, diesel, packaging bag supply constraint, and rupee depreciation impacted the quarter and impact expected to continue in the first-half of 2027, the company said in a statement. 

ACC said it is actively strengthening cost-mitigation measures through fuel mix optimisation, higher renewable energy usage, reducing logistics costs via rail and sea, and disciplined production and inventory management.

The company recorded highest ever quarterly revenue of Rs 7,146 crore, up 17 percent from the last year and also highest ever sales volume of 11.9 million tonnes, which grew 8 per cent. Highest ever sales volume in a quarter at 11.9 MnT, a growth of 8% YoY.

ACC’s net profit declined to Rs 238 crore in the fourth quarter, when compared to Rs 751 crore in the same period last year. After reconciliation for certain items, the net profit dropped to Rs 214 crore from Rs 542 crore.

“Despite headwinds, we recorded a highest ever sales volume and revenue in the quarter. Volume growth was driven by a higher share of trade and premium cement, continued momentum in ready-mix concrete, and improved utilisation of our existing asset base,” Vinod Bahety, Whole-Time Director & CEO, ACC, said in a statement.

Cement demand remained strong through FY26. However, demand growth for FY27 is expected to remain soft at 5 per cent, factoring in early forecasts of a below normal monsoon, which could adversely impact agricultural output and housing demand, as well as ongoing West Asia conflicts leading to fuel price volatility, the company said.

ACC said it continues to focus on strengthening brand penetration, scaling up trade sales, and driving premiumisation across its portfolio. India’s long term infrastructure growth outlook remains strong despite near term geopolitical challenges.

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