ACCNSEMay 10, 2026

ACC Limited

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Management on call

Dharmesh Shah

JM FINANCIAL

Key numbers — 40 extracted

73.7 million

delivered a resilient performance for the year, achieving its highest ever annual sales volume of 73.7 million tonnes, up 16% Y-on-Y, year-on-year in that manner. And on a normalized basis, the EBITDA of INR6

16%

rformance for the year, achieving its highest ever annual sales volume of 73.7 million tonnes, up 16% Y-on-Y, year-on-year in that manner. And on a normalized basis, the EBITDA of INR6,539 crores, up

INR6,539 crore

lion tonnes, up 16% Y-on-Y, year-on-year in that manner. And on a normalized basis, the EBITDA of INR6,539 crores, up 31% at INR887 per metric ton, which is on a PMT basis, up 12% and the PAT of INR2,647 crores

31%

Y-on-Y, year-on-year in that manner. And on a normalized basis, the EBITDA of INR6,539 crores, up 31% at INR887 per metric ton, which is on a PMT basis, up 12% and the PAT of INR2,647 crores, up 17%.

INR887

year-on-year in that manner. And on a normalized basis, the EBITDA of INR6,539 crores, up 31% at INR887 per metric ton, which is on a PMT basis, up 12% and the PAT of INR2,647 crores, up 17%. The comp

12%

asis, the EBITDA of INR6,539 crores, up 31% at INR887 per metric ton, which is on a PMT basis, up 12% and the PAT of INR2,647 crores, up 17%. The company continues to remain debt-free and with highes

INR2,647 crore

INR6,539 crores, up 31% at INR887 per metric ton, which is on a PMT basis, up 12% and the PAT of INR2,647 crores, up 17%. The company continues to remain debt-free and with highest credit rating. Annual volume

17%

31% at INR887 per metric ton, which is on a PMT basis, up 12% and the PAT of INR2,647 crores, up 17%. The company continues to remain debt-free and with highest credit rating. Annual volumes grew

10%

credit rating. Annual volumes grew well ahead of the industry. Trade sales volume grew steady at 10%, while the premium cement accounted for 35% of the trade sales during the year, reflecting sustai

35%

ad of the industry. Trade sales volume grew steady at 10%, while the premium cement accounted for 35% of the trade sales during the year, reflecting sustained progress on premiumization. During the

109 million

g sustained progress on premiumization. During the year, company's cement capacity increased to 109 million tonnes, supported by commissioning of 10.7 million tonnes of new grinding capacity at various loc

10.7 million

he year, company's cement capacity increased to 109 million tonnes, supported by commissioning of 10.7 million tonnes of new grinding capacity at various locations like Marwar, Farakka, Sankrail, Sindri, Kris

Guidance — 20 items

Vinod Bahety

opening

“And some of the other issues like the raw material costs, which we could have improved in terms of the fly ash, but pending some of the railway infrastructure, which will be completed in the coming months, and you will see a good level of improvement on that.”

Vinod Bahety

opening

“Together, they have 19 million tonnes of capacity, and the target is to increase the utilization by at least 5% to 10% for these assets.”

Vinod Bahety

opening

“Meanwhile, in terms of the full year of '26, we have given a figure -- we have achieved a figure of INR4,400 a tonne, which is almost 10% higher to our own target for the reasons which I have mentioned before.”

Vinod Bahety

opening

“Since there are -- these are like fast-moving global situations and dynamisms over the energy costs and other basically expected hikes in the fuel and diesel and all, therefore, it will be very difficult to provide any long-term estimates for right now till the time things stabilize over the next 2, 3 quarters.”

Navin Sahadeo

“And here, my question is that if we are seeing some pressure on volumes because for FY '27, we have given a guidance of 80 million tonnes, which is roughly a growth of 9% to 10% against the backdrop that we are expecting a much softer industry growth of 5%.”

Navin Sahadeo

“And in the same breath, is it that we are more open to pursue inorganic growth, which helps us catapult to that overall growth target?”

Vinod Bahety

“To answer your question, I think maybe what I would say that the target plans of FY '28, it could move a year or 2, let us say, on a safer side, I would say that FY '30.”

Raashi Chopra

“And you will be adding another 4 million this year?”

Indrajit Agarwal

“Second, if I look at your blended utilization for next year would we add best 71%, 72% on your expanded, let's say, weighted average capacity.”

Karan Adani

“And -- so we will be adding a few capacity in places which will help us in terms of reducing our cost, logistics cost, especially as well as help us improve our penetration into those markets.”

Risks & concerns — 11 flagged

Since there are -- these are like fast-moving global situations and dynamisms over the energy costs and other basically expected hikes in the fuel and diesel and all, therefore, it will be very difficult to provide any long-term estimates for right now till the time things stabilize over the next 2, 3 quarters.

— Vinod Bahety

At an industry level, we believe that given the headlines of inflation and weak monsoon, the industry may grow at around, say, 5% to 5.5%.

— Vinod Bahety

However, with the expected inflationary pressure, weak monsoon and cement demand is expected to remain a little soft.

— Vinod Bahety

And here, my question is that if we are seeing some pressure on volumes because for FY '27, we have given a guidance of 80 million tonnes, which is roughly a growth of 9% to 10% against the backdrop that we are expecting a much softer industry growth of 5%.

— Navin Sahadeo

So if I can just rephrase this, if nothing increases further in terms of global prices, you will see a decline of at least INR150 to INR200.

— Raashi Chopra

Now with the demand getting a little softer, the pressure on pricing definitely is higher.

— Vinod Bahety

And despite the circumstances of costs gone up, unfortunately, industry is still under the relentless pressure and not able to pass on the price.

— Vinod Bahety

And therefore, the pressure of volumes and therefore, the pressure on sales and hence, the higher advertisement branding or sales promotions have been there.

— Vinod Bahety

But I think any guidance on EBITDA will be difficult at this stage.

— Vinod Bahety

Or net-net, we would see INR300-odd increase and INR250 decline.

— Rajesh Ravi

So right now, for example, the headwind still continues, and therefore, it could be flattish for Q1.

— Vinod Bahety

Q&A — 20 exchanges

So friends, also just to inform you that we also have our Director and senior, Mr. Karan Adani also on the call. He has just joined us. So I welcome Karan bhai. And yes, I just -- basically Karan bhai did the opening remarks, and we are now on the Q&A. So over back to the moderator, please.

Management

My first question was on the volume growth front. So in this quarter, as per the investor deck, volumes have grown by about 10-odd percent. But if I adjust them to the Orient cement volumes, they are more like flattish on a Y-o-Y basis. And here, my question is that if we are seeing some pressure on volumes because for FY '27, we have given a guidance of 80 million tonnes, which is roughly a growth of 9% to 10% against the backdrop that we are expecting a much softer industry growth of 5%. So I'm just wanting to request overall color on your volumes?

Vinod Bahety

Yes. Sorry for this. So Navin, so you're right, absolutely, in terms of the volume, especially for this March quarter, it has been a little muted. But now for the FY '27, when I given you indication of 80 million, which is around closer to, say, 8%, we have the visibility in terms of, a, stabilizing the acquired assets of Sanghi, Penna, which I told you; b, the ongoing expansions, which will get commissioned in the next few months, like between, let us say, now to September, we'll see the capacities will get commissioned, and we'll also then stabilize them. So I have the incremental volume als

Just on the -- continuing on the previous question, what is the clinker capacity as of now?

Vinod Bahety

So Raashi, as of now, we are sitting on 69 million tonnes of clinker capacity. And you will be adding another 4 million this year? Yes. So at Maratha we have 4 million. Okay. And the next question on cost. Now for the full year, the cost is INR4,400. For the quarter, what was the average cost, INR4,500 for FY '26 for the same? In terms of quarter cost, Raashi, we are sitting at almost INR4,250 for the overall quarter and plus some of these increases what we have seen from the overall escalation. So I would like -- let us say that a normalized was almost INR4,250 and plus another INR250, which

Congratulations on increasing both trade sales and premium mix. But on that note, if I look at Slide 27, the realization has hardly moved Q-o-Q versus for peers, it is up somewhere between 1.5% to 2%. So is it mainly because of mix? Or what is driving this weaker revenue?

Vinod Bahety

So Indrajit, absolutely, you are right. I think the journey has just begun when we change the gears. And therefore, you will see more differentiated benefits coming in the subsequent quarters. What we have done is we have sustained the price levels at INR254 a bag compared to in December. So from our own December quarter, we are up by, say, modestly at say, INR1. And compared to, say, last year, we were at say, INR255 -- so yes, the journey would further see improvements with higher blended cement and more premium cement sales. So it has just begun. Second, if I look at your blended utilizatio

So Jashandeep, I think when Raashi asked this, and we have tried to explain. So in terms of picking out on our cost at INR4,500, which I mentioned, and from here, you will see improvements. But yes, your question is in terms of compared to the competition, why? Now a few components which are relevant to my business, I mentioned about a higher focus now on the branding advertisement to promote the trade sales and premium cement. Second is in terms of higher repairs and maintenance costs. And you're right that ideally one should do it during the off seasons like monsoons, but not all the machine

Vinod Bahety

Thank you, Jashandeep. So like Orient, for example, is operating at full capacity. So far as Sanghi is concerned, I will peg myself at almost like 65% to 70%. And so far as Penna is concerned, I will consider around 55% to 60% in terms of the utilization factors. And the existing assets of Ambuja and ACC, I would peg it to closer to around 75% to 80%. So on an overall basis, at the Ambuja consol level average in the situation -- the scenario which I have mentioned to you, I would say 70%, 75% ballpark utilization for -- and you're right, like we have -- we anticipate the softer demand, and the

Vinod bhai, I just wanted to ask, we have talked quite a bit about fiscal '27 outlook. But what I'm trying to reconcile is how should we reconcile between the improvements that you're planning in fiscal '27 is that dependent -- how much of that is dependent on internal execution versus external normalization? Maybe if you can just help us understand that.

Vinod Bahety

I would say that the external factors will affect most of the industry players. Therefore, I will give more weightages on the internal factors and the execution of the same, which will bring the overall differentiation and leadership leverage on that. So that I would put it in this manner. So Manish, if I may just come here, Karan here. I think if you look at our performance, we realized that where the gaps are. And that's exactly where we are hyper focused on and improving on those performance. And based on whatever guidance we are giving, this is 100%, which is controllable by us. And if we

My question is on cost again. Yes. So in the last third quarter con call, which happened like around start of the February, management talked about like cost of INR4,000. Yes, we are talking about INR4,100 -- INR4,000 in January. We're talking about INR4,100 in exit of this quarter. So how the quarter cost is INR4,500, I'm unable to understand. Another question is on the balance sheet. So your ACC's operating cash flows are negative, sharply negative for the year. And your overall consolidated Ambuja's cash flows also like negatively impacted by negative working capital. Can you throw some lig

Vinod Bahety

I will take the second question first. In terms of the ACC Ambuja, if you see ACC has receivable from Ambuja under the MSA. And you also would be aware that we have taken shareholders' approval in terms of the ICD, wherein the receivables will get paid off. So like you will find in the coming quarter, this will get knocked off with the ICD number one. So it's like as a one consol business under the MSA, the receivables are there. Therefore, ACC will find negative operating cash flow. So far as Ambuja is concerned, I think if you would have seen, we have a good level of inventory, which is high

Just my question is also following up with the Prateek's question on the cost front. So if I see on the first week of February when we had the last con call and if I may quote the average cost for the quarter was INR4,500 along with the one-off, whereas we have exited December quarter well below INR4,000 of cost? That was the commentary on the first week of February. I understand we do carry a good amount of inventory as well, at least a month on that account for most of the raw material and inputs on that part. Further, we had some one-off in the Q3. We have increased or enhanced our premium

Vinod Bahety

Okay. I think, see, basically, when -- in the December, for example, we have been very upbeat in terms of some of the turnarounds, which you will see in some of our acquired assets of Penna, for example, more so especially. And as you know, Penna is geographically more in South. And if you actually look at the numbers and South, for example, has been one of the most affected geography for the March quarter. Therefore, we have taken some of the machines on shutdown. And basically, there have been a couple of breakdowns also and therefore, which has increased my higher repairs and maintenance fo

I have a couple of them. One is, sir, for the Sanghi plant, which is operating at 57% utilization, how important is for the Naliya railway line to be ready? And how far do you see Naliya being connected and ramp up in volumes at Sanghi? That's question number one, sir.

Vinod Bahety

So Pulkit, our base model is not linked to Naliya railway line. It is more with the our marine infra, for example. And therefore, as you would know that we have already ordered 7 vessels, which will be delivered in a progressive manner starting from next year. So that is what, for example, Sanghi will bring the strength. And then otherwise, we are counting on the road movement from Sanghi. The railway line only will be an add-on, but not being considered in the base model. Sure. So the plan is to ramp up even if Naliya takes a little longer to be ready. Is that the right way to look at it? Yes

I have 2 questions. My first question is, given Ambuja is the fourth company to have reported earnings and the EBITDA per tonne is the lowest with high-cost inflation. Do you see the industry and the company raising cement prices in the next few months to pass on the full cost inflation? Or can we expect further margin deterioration with the inability to raise cement prices?

Vinod Bahety

So Pinakin, I would say that given the scenario of demand will be very important to basically see the price being passed on to the customers. And as of now, I anticipate the overall demand looks to be for right now, when I look at, say, April and now in May, a little subdued and soft. Therefore, for example, when you attempt for, say, X, I would be happy even if the industry gets half of the same. So that is like, for example, right now, the situation is. But yes, cost on the other side has gone up by at least INR25. So that is like the only way then to resolve and protect the margin is to foc

My first question is now that you have talked about cumulatively INR500 per tonne of cost improvement over the next couple of years, are we shying away from the earlier target of INR3,650 that you had shared earlier? That is my question number one.

Karan Adani

So we are not shying away from our target. I think as we told earlier also, we need to focus on our execution. We still have -- there are multiple steps on the cost that we need to take between manufacturing, between raw material and between logistics. And we are confident that we will be able to achieve that number. I think it's just -- we are giving you realistic in terms of where we will be able to achieve in the next 2 years' time. But that does not mean that we don't have the runway to go to the earlier target that we have said. We know what are the steps we need to take. We know where we

One question for Karan bhai, one for Vinod ji. Karan bhai, one question. What prompted us for a reset right now? If you could highlight 5 key monitorables that probably you have set for yourself for last -- for next 1 year? And how does SLA fit in overall scheme of things after the reset?

Karan Adani

Sorry, can you repeat the question? I couldn't hear you properly. Yes. So the first question is, what prompted us for a reset right now? Second, what are the 5 key monitorables that you have laid out for yourself? And third, how does SLA fit in overall scheme of things after the reset? Yes. So I think why the reset, I mean, it's quite evident our performance has not been great. We've not been able to -- we've not been able to deliver what we have promised to our shareholders. And so that is number one. I think if we have to assess ourselves, we really need to improve on our cost. That is numbe

Sir, it is great to see explicit capital discipline. But in that context, I just want to understand this INR65 billion to INR70 billion of annual capex for the next 2 years that we're talking about, can you break it down ballpark in terms of growth versus cost efficiency versus any other initiative that it includes?

Karan Adani

Yes. So roughly INR4 billion is what is already the capex, which is already under execution, and it is implementation of that, which includes capacity, which includes WHRS, which includes your fly ash transportation system that we need. And the balance is, I would say, debottlenecking plus maintenance capex. So yes, Ashish, basically, I hope that answers your question. Yes.

I just wanted to understand more from a strategic perspective, like when Adani had acquired these cement assets, you had voiced out an ambition to kind of become the industry leader and double capacity and volume. So in that context, the current guidance seems to be quite subdued. So is it fair to say that there is a reset in ambition kind of from the earlier kind of thought that was there at the time of the acquisition?

Karan Adani

So we'll be honest with you. Yes, partially, there is a reset. We are not moving away from the target. Yes, we are moving away from the time line. That is to do with the -- we know that we are not delivering in terms of what we have what we had committed. And so it definitely makes sense to step back to look back and to see where we are going wrong and to course correct and then to -- and then that's where we are. And that's why we are giving you the new guidance in terms of where -- what is the capacity -- revised capacity enhancement that we are looking at and the time frame that we are look

Happy to know that the management focus is more graded on capex and also focused on cost execution. My only question, while you have been candid on the guidance, when you say INR250 cost reduction you're looking for FY '27 over FY '26. And at the same time, from exit Q4, we are seeing around INR250 to INR300 cost inflation because of the packaging and fuel price increase. So is this INR250 net off? Or net-net, we would see INR300-odd increase and INR250 decline. So from current level, we would still see our cost going up by INR50 to INR100 in Q1 or in FY '27?

Vinod Bahety

So Rajesh, thank you. What we would put it is INR4,500 is the peak and this INR250 reduction is from here. So essentially, then it would mean INR4,250 as a target for '27. Right. This is factoring in the cost inflation that we have already in place? Yes, that is true. Okay. And in Q1 also, you are looking at similar cost structure in Q1 versus -- Q4 versus Q1, what sort of you're looking at basically the current inflation and your cost savings? So right now, for example, the headwind still continues, and therefore, it could be flattish for Q1. And as things comes out better, that it will start

Sir, just to clarify this INR250 cost reduction, this is on a full year average FY '27 that we are saying?

Vinod Bahety

Yes. So thanks, Shravan. This is for the full year FY '27 as an average. And therefore, for example, when I said that June quarter will be flat from the March quarter, then the degree of acceleration will have to be more for the rest 3 quarters. So you're right, the INR250 will be average for the year. Got it. And second, when you mentioned about the prices, was it INR10 and the INR15, INR20 hike that you mentioned, this was for the April you wanted to say or this is for March. So currently, on an average, from the exit of March, have the prices for us have increased by INR10- odd. That's what

Sir, just one question from the capex side. Our capex is continuously getting delayed. As Adani standard, we are known for a pro capex and the very fast execution. But at the cement side, we are continuously getting delayed, especially like Maratha plant, we have already delayed plus our earlier plant also got delayed for this one, Chhattisgarh one. What is the issue behind the and continuously, we are getting some breakdowns at our bigger plants. Is it the maintenance- related issue or what we are facing currently right now?

Karan Adani

So you're right. Your observation is right that capex -- our capex has not been up to the mark, and that's one of the reasons why we are pausing and correcting ourselves, and we want to first complete our projects that we have taken in our hand before we start any new projects. One of the main reasons why we have not been able to deliver as per what our standards are is 2, 3 things. I think one is we did not choose the right contractor for execution. Number two is, we started these projects when we acquired Ambuja and ACC. And at that time, there was no team. So it took us time to build up tha

So my first question is that in your pursuit to focus on premiumization, what is the current average gap between Ambuja brand versus the nearest competitor currently? And what is the target to narrow it further? That my first question.

Vinod Bahety

So you are referring to premium cement, and I can highlight that the gap between my base product and the premium cement product is closer to, let us say, INR50, INR55 for the super premium and INR20, INR25 for the premium one. I think that was like first. Then second, your question is about the gap between our price and compared to that competition. I think, see, everyone looks to his price better than others. And therefore, every time when the industry people try and compare us, there is always different opinions. I would say that the pan- India players like us and basically the other player,

This question is for Karan. Karan, I just want to understand the comment you made about recalibrating capacities that earlier, the capacities were not in the right location. Now the capacity you're looking at are in the right location. So where were you initially looking at these capacities? I believe Sanghi was also there in terms of expansion initially. So maybe could you just discuss where is this recalibration coming from in terms of capacity?

Karan Adani

No. So the recalibration is coming basically -- especially where we have the integrated units, those are the locations where we are recalibrating because we find that the grinding units, the operating cost, the logistics cost -- one of the reasons for the logistics cost being so high compared to competition is because the distance travel by the integrated units is quite higher than what it should be. So one of the things that we are working towards is shutting down the grinding units in a lot of these places and moving them closer to the market. So that is the recalibration we are looking at.

Yes. Thank you, Karan bhai, for joining the call and sharing your insights. Thank you all. I trust most questions have been answered. You have my contact numbers, please feel free to call me. Thank you.

Management

Speaking time

Vinod Bahety

Moderator

Karan Adani

Raashi Chopra

Rajesh Ravi

Shravan Shah

Indrajit Agarwal

Pulkit Patni

Rahul Gupta

Ritesh Shah

Opening remarks

Dharmesh Shah

Thank you, everyone. Without much delay, I will transfer the call to Mr. Deepak Balwani, Head of Investor Relations. Mr. Deepak, over to you.

Deepak Balwani

Thank you, Dharmesh. On behalf of Ambuja Cements, I'm pleased to welcome all the participants to our earnings call for the fourth quarter of FY '26. Ambuja Cements is the ninth largest building material solutions company globally and part of the diversified Adani Portfolio. Before we start, please note that this call may include forward-looking statements based on our current beliefs and expectations. These are not guarantees of future performance and may involve unforeseen risks and uncertainties. We remain committed to further strengthening our disclosure standards and improving the quality of our capital market communication to the best in the industry. We are pleased to have with us on the call Mr. Vinod Bahety, Chief Executive Officer; and Mr. Rohit Soni, Chief Financial Officer. Now I invite Mr. Bahety to provide his valuable insights on the quarterly performance.

Vinod Bahety

Yes. Thank you, Deepak. Thanks, Dharmesh. Good evening, everyone. FY '26 was a year of resilience for the Indian cement sector marked by industry consolidation and the GST 2.0 reforms on one side, while the adverse and the extended weather conditions, global geopolitical factors and the various state elections also affected the industry and demand in some or the other way. Against this backdrop, Ambuja delivered a resilient performance for the year, achieving its highest ever annual sales volume of 73.7 million tonnes, up 16% Y-on-Y, year-on-year in that manner. And on a normalized basis, the EBITDA of INR6,539 crores, up 31% at INR887 per metric ton, which is on a PMT basis, up 12% and the PAT of INR2,647 crores, up 17%. The company continues to remain debt-free and with highest credit rating. Annual volumes grew well ahead of the industry. Trade sales volume grew steady at 10%, while the premium cement accounted for 35% of the trade sales during the year, reflecting sustained progres

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