Financial Performance Highlights

Consolidated Q2 FY27 Performance (YoY Comparison)

  • Volume: 16.5 MnT (vs 16.6 MnT in Sep'25, -1%)
  • Revenue from Operations: ₹9,197 crore (vs ₹9,175 crore in Sep'25, 0% change)
  • EBITDA: ₹1,271 crore (vs ₹1,762 crore in Sep'25, -28%)
  • EBITDA Margin: 13.8% (vs 19.2% in Sep'25, -5.4 percentage points)
  • EBITDA per tonne: ₹770/tonne (vs ₹1,061/tonne in Sep'25, -27%)
  • Reported PAT: ₹236 crore (vs ₹2,336 crore in Sep'25, -90%)
  • Normalized PAT: ₹300 crore (vs ₹652 crore in Sep'25, -54%)
  • Diluted EPS: ₹0.78 (vs ₹7.18 in Sep'25, -89%)

Consolidated H1 FY27 Performance (YoY Comparison)

  • Volume: 33.6 MnT (vs 35.0 MnT in H1 FY26, -4%)
  • Revenue from Operations: ₹18,697 crore (vs ₹19,464 crore in H1 FY26, -4%)
  • EBITDA: ₹2,860 crore (vs ₹3,722 crore in H1 FY26, -23%)
  • EBITDA Margin: 15.3% (vs 19.1% in H1 FY26, -3.8 percentage points)
  • EBITDA per tonne: ₹852/tonne (vs ₹1,064/tonne in H1 FY26, -20%)
  • Reported PAT: ₹896 crore (vs ₹3,377 crore in H1 FY26, -73%)
  • Normalized PAT: ₹895 crore (vs ₹1,612 crore in H1 FY26, -44%)

PAT Reconciliation

Reported PAT of ₹236 crore for Q2 FY27 was adjusted to normalized PAT of ₹300 crore through:

  • Add: Voluntary Severance Scheme impact of ₹85 crore
  • Add: Tax impact of ₹21 crore (negative adjustment)
  • Previous year adjustments included government grant/incentive of ₹223 crore and income tax provision reversal of ₹1,697 crore

Standalone Q2 FY27 Performance

  • Volume: 11.4 MnT (vs 11.5 MnT in Sep'25, -1%)
  • Revenue from Operations: ₹6,121 crore (vs ₹5,588 crore in Sep'25, +10%)
  • EBITDA: ₹746 crore (vs ₹727 crore in Sep'25, +3%)
  • EBITDA Margin: 12.2% (vs 13.0% in Sep'25, -0.8 percentage points)
  • EBITDA per tonne: ₹653/tonne (vs ₹630/tonne in Sep'25, +4%)
  • Reported PAT: ₹114 crore (vs ₹1,158 crore in Sep'25, -90%)

Capacity Expansion Update

Current Status

  • Current cement capacity: 113.5 MTPA
  • Q2 FY27 additions: 4.6 MTPA commercial production commenced
  • Dahej Grinding Unit (Gujarat): +1.2 MTPA (1.4→2.6 MTPA)
  • Salai Banwa Grinding Unit (Uttar Pradesh): +2.4 MTPA (new unit)
  • Kalamboli Blending Unit (Maharashtra): +1.0 MTPA (total 3.0 MTPA)

Pipeline Projects

  • H2 FY27 pipeline: 5.6 MTPA total
  • 3.2 MTPA ramping up (Bathinda, Jodhpur Penna)
  • 2.4 MTPA to be commissioned (Warisaliganj)
  • Q1 FY28 expected: Maratha clinker line +4.0 MTPA

Awarded Projects

14 projects awarded to add 29.7 MTPA cement capacity and 10.3 MTPA clinker capacity, with completion dates between May'27 and Dec'28. Key projects include:

  • Maratha Line 2 (Maharashtra): 4.0 MTPA clinker by May'27
  • Assam units: 4.0 MTPA clinker + 5.8 MTPA cement by Dec'28
  • Mundra units (Gujarat): 2.3 MTPA clinker + 2.9 MTPA cement by May'28
  • Multiple grinding units across Jharkhand, Bihar, Gujarat, Maharashtra, Uttar Pradesh

Merger Update

  • Shareholders of both ACC Limited (meeting on September 29, 2026) and Orient Cement Limited (meeting on September 28, 2026) approved amalgamation with Ambuja Cements Limited
  • Creation of 'One Cement Platform' advances to final NCLT sanction stage
  • Expected completion in FY27 subject to regulatory and NCLT approvals
  • Expected benefits: simplified corporate structure, operating synergies, improved coordination across manufacturing and logistics

Industry Outlook and Challenges

Market Conditions

  • FY27 cement demand growth estimated at 6-7% based on H1 volumes and H2 estimates
  • Demand supported by infrastructure spending, urbanization, rural housing, and industrial activity
  • Near-term softness expected amid headwinds, but long-term secular demand story intact

Cost Pressures

  • West Asia conflict impact: Estimated ₹228 per tonne impact in Q2 FY27
  • Diesel prices: Increased 25-30% in past 6 months
  • Coal availability: Constrained domestic supply
  • Other costs: Higher petcoke, packing bags, and maintenance costs

Policy Environment

  • GST reduction: From 28% to 18% on cement, supporting affordability
  • Blended cement: NITI Aayog roadmap promotes higher blending and fly-ash substitution
  • CCTS: Emission-intensity targets incentivize decarbonization
  • Bulk transportation: Rail-freight reforms and dedicated bulk cement terminals improving efficiency

Operational Metrics

Sales Volume Breakdown (Q2 FY27)

  • Gross Cement Sales: 22.9 MnT
  • Ambuja (incl. Sanghi, Penna): 11.5 MnT
  • ACC (incl. Rajpura): 9.9 MnT
  • Orient: 1.5 MnT
  • Cement Sales (under MSA): 6.4 MnT
  • Net Cement Sales: 16.5 MnT
  • Net Clinker Sales: 0.2 MnT
  • Net CLC Sales Volume: 16.7 MnT

Market Strategy

  • Trade share increased by 6 percentage points YoY to 74% in Q2 FY27
  • Premium products rose by 2 percentage points to 37% of trade sales
  • Focus on improving trade mix, rationalizing low-margin volumes, increasing blended cement share
  • Trade volumes grew 8.6% YoY

Cost Management Initiatives

Raw Material Optimization

  • Source mix optimization
  • BCFC transport mode of FlyAsh reducing raw material costs
  • Use of Wagon Tipplers
  • New capacity additions expected to further reduce costs

Power and Fuel

  • Higher costs due to sharp increase in global coal prices
  • Fuel mix optimization reducing reliance on imports
  • Higher use of WHRS and AFR
  • Petcoke consumption optimized with more domestic coal use

Logistics Optimization

  • Maximizing home market sales at plant level
  • Source to market mapping and lead optimization
  • Modal shift in transport mode and fleet optimization
  • Reduction in secondary lead from 38km to 30km through warehouse network optimization
  • EV induction program: 150 EV trucks planned for clinker and cement by December 2027

Cash Flow and Balance Sheet

H1 FY27 Cash Flow Movement

  • Operating EBITDA: ₹2,860 crore
  • Change in Working Capital and others: -₹212 crore
  • Income Tax: ₹268 crore
  • Cash Flow from Operating Activities: ₹2,916 crore
  • Finance Expenses: -₹168 crore
  • Dividend paid: -₹569 crore
  • Cash Flow from Financing Activities: -₹737 crore
  • Finance Income: ₹84 crore
  • Capex: -₹2,963 crore
  • Cash Flow from Investing Activities: -₹2,879 crore
  • Net decrease in cash: -₹700 crore
  • Closing cash balance: ₹1,070 crore (vs opening ₹1,770 crore)

Balance Sheet Position (as of September 30, 2026)

  • Total Assets: ₹91,564 crore
  • Property, Plant and Equipment: ₹34,711 crore
  • Capital Work-in-Progress: ₹9,727 crore
  • Goodwill: ₹13,546 crore
  • Other Intangible Assets: ₹9,404 crore
  • Cash and Cash Equivalents: ₹1,070 crore
  • Total Equity: ₹72,238 crore
  • Borrowings: ₹55 crore
  • Company remains debt free with highest credit ratings: Crisil, CARE, IndiaRatings & ICRA - AAA (Stable)/A1+

ESG Performance

  • Sustainalytics Rating: #7/109 for Ambuja, #6/109 for ACC
  • S&P CSA Net Strength: 80/100 for Ambuja, 82/100 for ACC
  • CareEdge ESG Rating: ESG 1+ leadership category for both companies
  • Green power consumption: 61% of total power consumption at consolidated level
  • Continued focus on improving disclosures and engagement with rating agencies

Corporate Developments

  • CSR initiatives: Focus on water security, sustainable farming, women-led livelihoods, community health
  • Farm-to-plant linkage: Farmer-sourced biomass supplied to Ambuja Cements
  • Health outreach: 19,872 truckers and allied population covered
  • Awards received: 10 awards for energy efficiency, 3 ET Digi+ Awards, 11 ICC OH&S Awards