ACC Q3 Results: Normalized Profit Soars 346% on Record Sales

Introduction to ACC's Q3 Performance

ACC Limited, a key player in India's building materials sector and part of the Adani Group, announced a strong performance for the third quarter ending December 31, 2025. The company achieved its highest-ever quarterly sales volume, signaling robust operational momentum. This performance comes at a pivotal time, as ACC is set to amalgamate with Ambuja Cements to form a unified 'One Cement Platform', a strategic move aimed at enhancing growth and operational efficiency.

Financial Highlights of the Quarter

ACC's financial results for Q3 FY26 showcased significant growth in key areas. Revenue from operations climbed by 22% year-on-year to reach ₹6,483 crore, the highest quarterly revenue in the company's history. This growth was driven by a record sales volume of 11.3 million tonnes, a 15% increase compared to the same period last year. The company's focus on premium products paid off, with premium volume sales growing by 33% and contributing to 43% of trade sales.

While the reported consolidated net profit stood at ₹404 crore, a 63% decline from the previous year, this figure requires context. The corresponding quarter in FY25 included substantial one-time gains, such as a government grant of ₹637 crore. On a normalized basis, which excludes these exceptional items, the profit after tax for Q3 FY26 surged by an impressive 346% to ₹380 crore. Operating EBITDA (normalized) also saw a healthy 46% increase to ₹700 crore.

Operational Excellence and Cost Management

The company's strong performance was underpinned by a focus on operational excellence and cost leadership. ACC successfully reduced several key operational costs. Kiln fuel cost was lowered by 1%, and overall power cost also saw a 1% reduction. A significant achievement was the increase in the share of green power in total consumption, which rose by 12.6 percentage points to 31.3%. Furthermore, logistics were optimized, with the primary lead distance reduced by 9 kilometers and direct dispatches increasing by 3 percentage points to 52%.

The Ready Mix Concrete (RMC) business also demonstrated strong growth, with volumes up 36% year-on-year to 0.97 million cubic meters. The RMC network expanded with the addition of 14 new plants, bringing the total to 117 plants across 45 cities.

Strategic Amalgamation: The 'One Cement Platform'

A major strategic development during the quarter was the announcement of ACC's amalgamation with Ambuja Cements. This move is designed to create a pan-India cement powerhouse under a single corporate structure. The unified 'One Cement Platform' is expected to unlock significant synergies across manufacturing, procurement, and logistics. Management anticipates that this integration will streamline operations, improve capital allocation efficiency, and strengthen the combined entity's market leadership. The transaction is subject to regulatory approvals and is expected to be completed in FY27.

Key Financial Metrics

A snapshot of ACC's financial health reveals a stable and well-managed company. It continues to be debt-free, holding the highest credit ratings of AAA (Stable) from both CRISIL and CARE. The company's net worth increased by ₹389 crore during the quarter to stand at ₹20,326 crore.

Industry Outlook and Future Growth

The outlook for the Indian cement industry remains positive. Demand revival observed in the third quarter has continued, putting the industry on track for approximately 8% growth in FY26. This growth is fueled by sustained demand from the housing and infrastructure sectors. Adani Cement, including ACC, has been growing at twice the industry average and aims to maintain this leadership position.

Looking ahead, ACC is on track to commission new cement grinding units at Salai Banwa (2.4 MTPA) and Kalamboli (1.0 MTPA) in the fourth quarter of FY26. These capacity additions, combined with the synergies from the upcoming merger, position the company for sustained growth and cost leadership.

Conclusion

ACC's Q3 FY26 results reflect a company in a strong operational and financial position. Record sales volumes and a significant jump in normalized profits highlight its market strength and efficiency. The strategic amalgamation with Ambuja Cements is set to create a formidable entity in the Indian cement landscape, poised to capitalize on the country's infrastructure growth. For investors, ACC presents a story of robust current performance combined with a clear strategic vision for future expansion and value creation.