Annual Sales Volume
73.7M tonnes
+16% YoY
Highest ever annual volume, driven by capacity additions and acquired assets.
ACC
Other
15 May 2026
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.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
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.
Key Numbers
Premium Cement Share of Trade Sales
36%
+1pp YoY
Sustained progress on premiumization; Q4 share at 36%.
Trade Sales Share
74%
+6pp QoQ
Increased from 68% in Q3, reflecting focus on branded sales.
Green Power Share
32%
+6pp YoY
Green power share increased to 32% in Q4 from 26% a year ago.
Management Guidance
FY27 volume target of 80 million tonnes
Management expects 8% volume growth to ~80mt, driven by stabilization of acquired assets and new capacity commissioning.
Management guidance growthCost reduction of ₹250/tonne in FY27
Targeting average cost reduction of ₹250/tonne in FY27 from Q4 FY26 exit cost of ₹4,500, implying ~₹4,250 average.
Management guidance marginsCapex of ₹6,000-6,500 crore for FY27
Capital expenditure guided at ₹6,000-6,500 crore, with focus on completing ongoing projects and debottlenecking.
Management guidance capexCapacity to reach 119 million tonnes by FY27 end
Cement capacity expected to increase to 119mt by end of FY27, including 10mt of new grinding capacity.
Management guidance expansionKey Risks
Cost inflation from global factors
West Asia war led to packaging cost spikes and fuel cost increases, adding ~₹250/tonne in Q4; further escalation could derail cost reduction targets.
high · management_commentarySoft demand limiting price hikes
Management noted demand is soft and price increases of only ₹10-15/bag have been achieved, insufficient to offset cost inflation.
high · analyst_questionExecution delays in efficiency capex
Management admitted 3-6 month delays in efficiency projects, which could push cost savings beyond FY27.
medium · management_commentaryAcquired asset underperformance
Sanghi and Penna plants have low utilization (57% and 46%) and higher maintenance costs, impacting overall margins.
high · data_observationNotable Quotes
We are not moving away from the target, yes we are moving away from the timeline.
4500 is the peak and this 250 reduction is from here.
We have not been able to deliver what we have promised to our shareholders.
Frequently Asked Questions
What was ACC's revenue in Q4 FY26?
ACC reported revenue of ₹7,146 Cr in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did ACC management give for FY27?
FY27 volume target of 80 million tonnes: Management expects 8% volume growth to ~80mt, driven by stabilization of acquired assets and new capacity commissioning. Cost reduction of ₹250/tonne in FY27: Targeting average cost reduction of ₹250/tonne in FY27 from Q4 FY26 exit cost of ₹4,500, implying ~₹4,250 average. Capex of ₹6,000-6,500 crore for FY27: Capital expenditure guided at ₹6,000-6,500 crore, with focus on completing ongoing projects and debottlenecking. Capacity to reach 119 million tonnes by FY27 end: Cement capacity expected to increase to 119mt by end of FY27, including 10mt of new grinding capacity.
What are the key risks for ACC in FY27?
Key risks include Cost inflation from global factors — West Asia war led to packaging cost spikes and fuel cost increases, adding ~₹250/tonne in Q4; further escalation could derail cost reduction targets.; Soft demand limiting price hikes — Management noted demand is soft and price increases of only ₹10-15/bag have been achieved, insufficient to offset cost inflation.; Execution delays in efficiency capex — Management admitted 3-6 month delays in efficiency projects, which could push cost savings beyond FY27.; Acquired asset underperformance — Sanghi and Penna plants have low utilization (57% and 46%) and higher maintenance costs, impacting overall margins..
Did ACC meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full ACC Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.