ACC Q2 FY27 Net Profit Falls 91% YoY

Key Financial Figures (Standalone)

Income Statement (₹ crore)

Quarter Ended September 30, 2026:

Revenue from operations: ₹5,612
Other income: ₹122
Government grants: ₹23
Total income: ₹5,757
Total expenses: ₹5,557
Profit before exceptional items and tax: ₹200
Exceptional items expense: ₹71
Profit before tax: ₹129
Tax expense: ₹28
Profit after tax: ₹101
Other comprehensive income (net of tax): ₹25
Total comprehensive income: ₹126
Basic EPS: ₹5.38
Diluted EPS: ₹5.37

Half Year Ended September 30, 2026:

Revenue from operations: ₹11,360
Total income: ₹11,582
Total expenses: ₹11,160
Profit before exceptional items and tax: ₹422
Exceptional items expense: ₹95
Profit before tax: ₹327
Tax expense: ₹78
Profit after tax: ₹249
Total comprehensive income: ₹276
Basic EPS: ₹13.26
Diluted EPS: ₹13.23

Balance Sheet (Standalone) as of September 30, 2026 (₹ crore)

Total assets: ₹28,513
Non-current assets: ₹16,314
Current assets: ₹12,199
Total equity: ₹20,551
Non-current liabilities: ₹1,378
Current liabilities: ₹6,584
Paid-up equity share capital: ₹188 (face value ₹10 per share)
Other equity: ₹20,363

Cash Flow (Standalone) for H1 FY27 (₹ crore)

Cash flow from operating activities: ₹4,905
Cash flow used in investing activities: ₹(4,899)
Cash flow used in financing activities: ₹(235)
Net decrease in cash and cash equivalents: ₹(229)
Cash and cash equivalents at beginning: ₹459
Cash and cash equivalents at end: ₹230

Key Financial Figures (Consolidated)

Quarter Ended September 30, 2026:

Revenue from operations: ₹5,656
Total income: ₹5,796
Total expenses: ₹5,602
Profit before exceptional items, share of profit of associates/joint ventures and tax: ₹194
Share of profit of associates and joint ventures: ₹1
Exceptional items expense: ₹71
Profit before tax: ₹124
Tax expense: ₹31
Profit after tax: ₹93
Total comprehensive income: ₹118
Basic EPS: ₹4.95
Diluted EPS: ₹4.94

Half Year Ended September 30, 2026:

Revenue from operations: ₹11,456
Total income: ₹11,657
Total expenses: ₹11,241
Profit before exceptional items, share of profit of associates/joint ventures and tax: ₹416
Share of profit of associates and joint ventures: ₹3
Exceptional items expense: ₹95
Profit before tax: ₹324
Tax expense: ₹84
Profit after tax: ₹240
Total comprehensive income: ₹267
Basic EPS: ₹12.78
Diluted EPS: ₹12.75

Exceptional Items Details

Standalone and Consolidated (₹ crore):

Q2 FY27: Termination benefits under Voluntary Severance Scheme - ₹71
Q1 FY27: Termination benefits under Voluntary Severance Scheme - ₹24
H1 FY27: Total VSS expense - ₹95

Standalone Only (FY26):

Net gain on sale of Property, Plant and Equipment: ₹(125)
Impact of new labour law implementation: ₹54
Recognition of Infrastructure Development Cess and Environment Cess credit: ₹(81)

Consolidated Only (FY26):

Impact of new labour law implementation: ₹54
Recognition of Infrastructure Development Cess and Environment Cess credit: ₹(82)

Dates of Action

Board meeting date: October 27, 2026
Period ended: September 30, 2026
Voluntary Severance Scheme recognized in Q1 and Q2 FY27
Tax reassessment occurred during FY26

Parties Involved

Statutory Auditors: SRBC & CO LLP
Ultimate Holding Company: Ambuja Cements Limited
Subsidiaries: Multiple including ACC Mineral Resources Limited, Bulk Cement Corporation (India) Limited, and various step-down subsidiaries
Regulatory bodies: Competition Commission of India, National Company Law Tribunal, High Courts of Chhattisgarh and Karnataka

Legal and Regulatory Matters

Competition Commission of India Cases

1. Cartelization Case (2016): Penalty of ₹1,148 crore imposed, stayed by NCLAT with 10% deposit condition (₹114.8 crore deposited). Appeal pending in Supreme Court with next hearing on October 28, 2026.

2. Collusive Bidding Case (2017): Penalty of ₹35 crore imposed, stayed by COMPAT. Matter listed before NCLAT on August 18, 2026, adjourned.

Karnataka Royalty Dispute

Dispute with Department of Mines & Geology over royalty calculation basis for Wadi limestone mining lease
Hon'ble High Court of Karnataka order dated September 8, 2026: Set aside demand notice, directed refund of ₹125 crore deposited under protest, restoration of ILMS portal access, and execution of Supplementary Lease Deed
State Government filed Special Leave Petition before Supreme Court (under defect, not yet registered)

Chhattisgarh Cess Matter

Claim for refund of Infrastructure Development Cess and Environment Cess paid since May 27, 2005
Recognized receivable/credit of ₹95 crore (standalone) and ₹96 crore (consolidated) as of September 30, 2026
Petition pending before Hon'ble High Court of Chhattisgarh since March 2007

Corporate Actions

Amalgamation Scheme

Scheme of Amalgamation with Ambuja Cements Limited approved by Boards on December 22, 2025
Appointed date: January 1, 2026
Exchange ratio: 328 Ambuja shares (face value ₹2) for every 100 ACC shares (face value ₹10)
Shareholders approved scheme on September 29, 2026
Joint Company Petition presented before NCLT on October 1, 2026
NCLT hearing date fixed for November 19, 2026

Inter-Corporate Deposits

Given ₹4,403 crore ICDs to Ambuja Cements Limited during H1 FY27 (including ₹503 crore in Q2)
Interest rate: 8% per annum
Repayable on or before March 31, 2027
Approved by shareholders on April 1, 2026

Operational Highlights

Temporary suspension of manufacturing operations at certain facilities approved in Q1 FY26
Voluntary Severance Scheme implemented for third party workforce and permanent employees
Coal sales reclassification from Power and Fuel expense to Revenue from Operations effective Q3 FY25

Financial Impact

Exceptional items expense of ₹95 crore (H1 FY27) for Voluntary Severance Scheme
Tax write-back of ₹594 crore recognized in FY26 from reassessed provisions
No provision made for CCI penalties based on legal advice
No impairment provision for temporarily suspended facilities