Key Financial Figures (Consolidated Q2 FY27)

  • Cement sales volume: 16.5 million metric tons
  • Revenue from operations: INR 9,197 crores
  • Operating EBITDA: INR 1,271 crores
  • EBITDA margin: 14%
  • EBITDA per metric ton: INR 770
  • PAT: INR 236 crores
  • Net worth: INR 72,238 crores
  • Cash and cash equivalents: INR 1,070 crores
  • Company remains debt-free with AAA/A1+ credit rating

Operational Performance Highlights

  • Trade volume grew 8.6% YoY with trade share increasing 6% to 74%
  • Premium products reached 37% of trade sales (vs 35% last year)
  • Share of blended cement improved from 77% to 82%
  • Realization sustained at INR 255 per bag in Q2, with INR 10 per bag increase realized in October
  • Working capital cycle improved by 10 days through better receivables and inventory management
  • Ready-mix concrete business achieved 1.07 million cubic meters volume, up 19% YoY
  • Current RMC network: ~125 plants

Regional Performance

  • North: Led on EBITDA and volume growth with 13% YoY trade volume growth
  • Central: Second highest regional EBITDA with 9% trade volume growth
  • West: 14% trade volume growth and most resilient EBITDA performance
  • East: Maintained trade volumes broadly in line with last year
  • South: 13% YoY trade volume growth with strong sequential recovery

Cost Structure Analysis

  • Green power share: 61%
  • Net power cost: INR 4.8 per unit (vs INR 6.0 in Q2 FY26 and INR 4.3 in Q1 FY27)
  • Logistics costs: Moderately higher YoY due to higher diesel costs
  • Primary lead reduced from 265 km to 254 km
  • Fuel cost: INR 1.87 per 1,000 kcal (vs INR 1.60 in Q2 FY26 and INR 1.66 in Q1 FY27)
  • Total cost: INR 4,410 per metric ton (INR 4,182 normalized excluding geopolitical impact)
  • FY27 cost target: INR 4,250 per metric ton

Capacity Expansion Program

Major Expansion Announcement: 14 projects to add approximately:

  • 30 million tons of cement capacity
  • 10.3 million tons of clinker capacity
  • Total capex requirement: INR 14,500 crores

West Cluster Additions (15.2 million tons):

  • Mundra, Gujarat: 2.9 million tons
  • Hazira, Gujarat: 2.9 million tons
  • Raigad, Maharashtra: 2.9 million tons
  • Kalyan, Maharashtra: 2.9 million tons
  • Amravati, Maharashtra: 2.9 million tons
  • Dahanu, Maharashtra: 1 million tons (bulk cement terminal)

East Cluster Additions (11.6 million tons):

  • Rangia, Assam: 2.9 million tons
  • Hojai, Assam: 2.9 million tons
  • Godda, Jharkhand: 2.9 million tons
  • Muzaffarpur, Bihar: 2.9 million tons

North Cluster Additions (2.9 million tons):

  • Dadri Line-2, Uttar Pradesh: 2.9 million tons

Clinker Capacity Additions:

  • Maratha, Maharashtra: 4 MTPA
  • Umrangso, Assam: 4 MTPA
  • Mundra: 2.25 MTPA

Recent Commissioning and Stabilization

  • Q2 FY27 commissioned: 4.6 million tons across Dahej (Gujarat), Salai Banwa (UP), and Kalamboli (Maharashtra)
  • Stabilized: 3.2 million tons across Bathinda (Punjab) and Jodhpur (Rajasthan)
  • Expected H2 FY27 commissioning: Warisaliganj, Bihar (2.4 million tons)

Capacity Timeline Guidance

  • FY29 target: 149 million tons
  • FY30 target: 155 million tons (includes 15 million tons from debottlenecking)

Corporate Actions

Merger Update:

  • Proposed merger of ACC and Orient Cement with Ambuja Cements
  • Received strong shareholder support
  • Proceeding to NCLT for final approvals
  • Expected completion within FY27
  • Expected to be EPS accretive and create "One Cement" platform

Operational Efficiency Initiatives

  • Higher utilization of BCFC infrastructure for fly ash movement
  • Fuel mix improvement with higher share of domestic coal vs high-cost pet coke
  • 400 electric vehicles expected to be operational by March 2027
  • Digipin technology implementation for logistics optimization
  • Cement Intelligent Network Operating Center (CINOC) implementation

Fuel and Power Details

  • Domestic coal share: >60% of fuel mix
  • Imported fuel share: <40%
  • Pet coke share: ~10-12%
  • Current spot imported fuel cost: INR 2.80-2.85 per 1,000 kcal
  • Green power sales: INR 136 crores revenue in Q2 (352 million kWh units)
  • Fly ash sales: INR 25 crores revenue in Q2
  • 20 million tons of fly ash tied up with group thermal power plants

Capex Guidance

  • FY27 capex: INR 6,500-7,000 crores (INR 3,500 crores already incurred in H1)
  • FY28-FY29 capex: ~INR 7,500 crores per year

Utilization and Volume Guidance

  • Q2 FY27 utilization: ~61-62%
  • Exit FY27 utilization target: ~75%
  • H2 FY27 volume growth: Expected to outpace industry (higher single-digit to double-digit)
  • Industry demand expectation: 6-7% for FY27

Market Outlook

  • Near-term conditions remain challenging due to geopolitical conflicts, global uncertainties, higher energy costs, and weaker monsoon
  • Structural demand supported by infrastructure spending, urbanization, rural housing, and industrial activity
  • Some states have declared drought which may impact construction cycle with a lag

Tax Rate

  • Low tax rate in Q2 due to tax shields from Penna and Sanghi acquisitions
  • Merger expected to bring tax efficiency

Clinker Capacity

  • Current consolidated clinker capacity: 69 million tons
  • Clinker ratio: ~66%

Vendor Partnership Strategy

  • New grinding units operational with vendor partners (Kalamboli, Salai Banwa, Bathinda, Penna Jodhpur, Dahej)
  • Service Level Agreements (SLAs) implemented for 5 plants in logistics
  • Strong vendor partner ecosystem development