ACC Q1 FY27 Results: Net Profit Falls 61% as Lower Sales and Higher Costs Weigh on Earnings

ACC reported a sharp decline in its financial performance for the first quarter of FY27. The company's net profit fell 60.9% year-on-year (YoY) to ₹147 crore, compared to ₹376 crore in the same quarter last year.

Revenue from operations also declined 7.8% YoY to ₹5,790 crore, down from ₹6,277 crore in Q1 FY26. On a sequential basis, profit fell 38.2%, while revenue declined 18.7%.

Cement Sales Decline During the Quarter

ACC sold 10 million tonnes of cement during the June quarter, compared to 10.7 million tonnes a year ago.

Despite lower overall sales, the company improved its product mix:

• Trade sales accounted for 81% of total sales, up by 5 percentage points.
• Premium products contributed 44% of trade sales, an increase of 3 percentage points compared to last year. 

Higher Costs Impact Profitability

The company said its profitability was affected by several factors during the quarter, including:

• Higher prices of imported petcoke and thermal coal due to geopolitical tensions in West Asia.
• Increased freight and logistics costs.
• Planned maintenance shutdowns at major integrated cement plants.
• Higher service charges paid to parent company Ambuja Cements. 

ACC added that it achieved some cost savings through efficiency measures, although these were not enough to offset the rise in input costs.

Management Outlook

According to ACC, cement demand in India is expected to grow by around 5% in FY27.

The company believes demand may remain affected in the short term due to:

• Monsoon-related slowdown.
• Geopolitical uncertainties.
• Volatility in fuel and raw material costs. 

However, it expects long-term demand to remain strong, supported by:

• Higher infrastructure spending.
• Urbanisation.
• Continued growth in the housing sector. 

The company also noted that the full impact of higher fuel costs is likely to be seen in the second quarter because of the industry's fuel inventory cycle.

Renewable Energy Investment

ACC's Board has approved the acquisition of a 26% stake in Amplus Andhra Power for about ₹5.31 crore through a cash transaction.

The investment will enable ACC to procure renewable electricity as a captive consumer under the Electricity Act. The acquisition is expected to be completed by October 30, 2026, and does not require regulatory approvals.

ACC Share Price Movement

ACC share price (NSE: ACC) ended the trading session on July 24, 2026, at ₹1,342.00 on the NSE, gaining 0.61% (₹8.10). During the day, the stock opened at ₹1,329.00, touched an intraday high of ₹1,354.70, and slipped to a low of ₹1,312.00. The company had a market capitalisation of ₹25,200 crore, traded at a price-to-earnings (P/E) ratio of 11.82, and had a 52-week high of ₹1,987.00.

Read More: Dr. Reddy's Laboratories Share Price Falls Over 2% After Q1 FY27 Earnings Results: Total Income Down 4.6% YoY!

Conclusion

ACC reported a challenging first quarter of FY27, with lower revenue, weaker cement sales and a sharp decline in profit due to higher fuel, logistics and maintenance costs. 

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