ACC Q4 FY26 profit falls 68% on costs; ₹7.5 dividend

What ACC reported for the March quarter

ACC Ltd reported a sharp drop in consolidated profitability for the March quarter (Q4 FY26), even as sales and revenue expanded. Consolidated net profit fell 68.28% year-on-year (YoY) to ₹238.25 crore, compared with ₹751.03 crore in the year-ago quarter, the company said in a regulatory filing. The results were announced after market hours. Earlier in the day, ACC shares closed 0.70% lower at ₹1,426.55 on the BSE.

Revenue growth held up, but costs rose faster

Revenue from operations increased 17.96% YoY to ₹7,124.47 crore in Q4 FY26, up from ₹6,039.70 crore a year earlier. The revenue rise came alongside higher volumes, based on the company’s quarter update. But the operating environment remained cost-heavy in the period.

Total expenses climbed 22.71% YoY to ₹6,826.24 crore, compared with ₹5,562.85 crore in Q4 FY25. With expenses growing faster than revenue, profitability weakened materially. The filing linked the margin pressure to multiple input categories rather than a single cost head.

West Asia conflict and other input pressures cited

ACC said profitability was impacted by “elevated cost pressures” amid the ongoing West Asia conflict. The company also flagged pressures from fuel, diesel, and rupee depreciation. It additionally pointed to packaging bag supply constraints during the quarter.

ACC stated that these factors affected the March quarter and that the impact is expected to continue in H1 FY27. The company’s commentary suggests the cost environment remains uncertain for the near term, especially where imported energy-linked inputs and currency movement influence delivered costs.

Cost-control levers ACC says it is using

ACC said it is strengthening cost-mitigation measures through fuel mix optimisation and higher renewable energy usage. It also flagged steps to reduce logistics costs via rail and sea, along with “disciplined production and inventory management.” These measures are commonly used in cement operations to manage volatility in power, fuel, and freight, which typically make up a large share of variable costs.

The company did not quantify the expected savings from these initiatives in the filing excerpt provided. Still, the actions indicate a focus on controllable levers while the wider input cycle remains tight.

Record sales volume highlights demand and execution

Despite the earnings decline, ACC highlighted its highest-ever quarterly sales volume at 11.9 million tonnes (MnT). The company said this represented 8% YoY growth. Higher volumes can support operating leverage in cement, but in this quarter, cost inflation appears to have outweighed the benefit.

The volume disclosure also provides a key operational context for the quarter: demand was not the limiting factor for revenue. Instead, the profitability swing was driven by the gap between realisations and the pace of cost increases.

Dividend of ₹7.50 per share recommended

Alongside the Q4 FY26 results, ACC’s board recommended a dividend of ₹7.50 per equity share (face value ₹10 each) for FY26, subject to shareholder approval. The company fixed June 12, 2026 as the record date to determine eligibility.

ACC said the dividend, if declared by shareholders at the ensuing AGM, will be paid on or after July 1, 2026, subject to deduction of tax at source, as applicable. The announcement keeps the dividend amount clearly stated, while the payout remains conditional on shareholder approval.

Key numbers at a glance

Why the quarter matters for investors

The Q4 FY26 print shows the sensitivity of cement earnings to fuel-linked costs, currency movement, and supply constraints in packaging inputs. ACC’s revenue growth and record volume indicate operating traction, but the faster rise in expenses compressed profits sharply. The company’s explicit guidance that cost pressures may continue into H1 FY27 will likely keep investor focus on margin recovery and the pace of cost-mitigation actions.

What to watch next

From here, attention will remain on whether cost pressures ease and how quickly ACC’s mitigation measures reflect in operating performance. On the corporate action side, investors will track the shareholder approval process for the FY26 dividend, the June 12, 2026 record date, and the stated payout window starting on or after July 1, 2026.