ACC Ltd — Q4 FY26

Ambuja Cement reported a disappointing Q4 FY26 with cost per tonne hitting ₹4,500, well above the earlier target of ₹4,000. Full-year EBITDA per tonne was ₹887, up 12% YoY, but Q4 saw significant cost inflation from packaging, fuel, and higher repairs at acquired assets (Sanghi at 57% utilization, Penna at 46%). Management admitted a 3-6 month delay in efficiency capex and guided for only ₹250/tonne cost reduction in FY27, implying average cost of ~₹4,250. Volume guidance of 80 million tonnes (8% growth) relies on stabilizing acquired assets and commissioning 10mt new capacity, but industry demand is expected to grow only 5-5.5%. Capex is being recalibrated to ₹6,000-6,500 crore for FY27, with a reset in ambition and timeline for the 140mt capacity target. Key risk: inability to pass on cost increases due to soft demand, further pressuring margins.