ACC Q1 results: Net profit rises 4%, EBITDA advances 23%, margins expand by 40 basis points

Adani group backed cement maker ACC on Thursday, July 24, reported net profit of ₹375 crore in the first quarter of current financial year marking an increase of 4% from ₹360 crore during the same period last year. ACC's revenue from operations rose 18% annually to ₹6,036 crore as against ₹5,113 crore in the year-ago period.

ACC reported stable operational performance as its earnings before interest, taxes, depreciation, and amortisation (EBITDA) also known as operating profit advanced 23% to ₹727 crore and its operating profit margin expanded by 40 basis points to 12.04%.

"With a purpose driven accelerated start to the year, our performance reflects the strength of our integrated strategy—anchored in premium sales, operational excellence, cost leadership, and a deep commitment to sustainability. The consistent growth in volumes, efficiency gains, and digital transformation initiatives are enabling us to deliver greater value to our customers and stakeholders. With our science-based net-zero targets validated by the SBTi, we continue to lead the industry in climate responsibility," said Vinod Bahety, Whole-Time Director & CEO, ACC.

"As we move forward, we remain focused on scaling responsibly, innovating continuously, and building a future-ready building materials solutions company making material impact that contributes meaningfully to nation’s infrastructure and economic ambitions,” Bahety added.

During the quarter, sales volume increased by 12% year-on-year (YoY) supported by higher trade volumes and higher premium product as a percentage of trade sales volume (7 percentage points YoY), ensuring market leadership, ACC said in a press release.

Logistics costs reduced by 5% at ₹972/ton, driven by efficiency improvement journey. New initiatives taken on wheeler alignment as per shifting customer needs, improved road direct dispatch by 2pp @69%. Through various freight negotiation initiatives, road PTPK has decreased by 1% YoY, @Rs. 4.15 per ton, ACC added.

ACC expects cement demand to remain strong in the current financial year. It expects cement demand to grow between 6% to 7% due to rise in demand for affordable housing (bot rural and urban), higher spending on infrastructure and commercial sector, which includes increased investment in core and allied infrastructure sector.

As of 2:13 pm, ACC shares traded 2.37% lower at ₹1,903.80, underperforming the NIFTY50 index which was down 0.74%.