ACC Limited has released the transcript of its Q3 FY26 earnings call, detailing the company’s financial performance and strategic initiatives. Key highlights include discussions on volume growth, cost management, capacity expansion, and sustainability efforts. The company reported strong volume growth and improved realizations, though costs increased during the quarter. Future plans involve capacity expansion and a focus on premium products. This information is based on the earnings call held on January 30, 2026.
Financial Highlights
ACC Limited reported a 17% increase in sales volume for Q3 FY26, with market share improving to 16.6%. Revenue reached INR 10,277 crores, up 20%. The company achieved its highest-ever quarterly sales volume at 18.9 million tons. Realizations improved by INR 5 per bag compared to the previous year. Trade pricing continued to outperform non-trade, with gaps widening up to INR 31 per bag. The company is focused on trade channels to get better realization.
Cost Management
While costs increased this quarter, ACC Limited delivered Y-o-Y reductions across the value chain. Kiln fuel costs decreased by 6%, power costs reduced by 15%, and logistics costs reduced by 1%. Green power share increased to 37%. The company aims to reach INR 3,650 per ton of cost by March 2028. Renewable energy footprint stands at almost 900 megawatts, with plans to reach 1,122 megawatts by FY27.
Capacity Expansion and Operational Efficiency
A 2.4 million tons Marwar Grinding Unit has been commissioned. Total capacity stands at 109 million tons per annum. Commissioning of Warisaliganj is now scheduled for Q1 2027. An additional 15 million tons of debottlenecking capacity is being unlocked at lower capex cost. The aim is to hit 155 million tons by March 2028. Capacity utilization for acquired assets improved to 58% with an exit of December at 65%. The company expects to reach almost 80% utilization on these assets. Digital intelligence is central to the operating model, with the launch of CiNOC, an AI-enabled central control system. The company plans to fully integrate and optimize the operations of Sanghi and Penna assets.
Sustainability and Premiumization
Premium cement volumes accounted for 35% of trade sales, increasing by 31% Y-o-Y. A significant focus remains on premium products. The company has adopted the TNFD framework for nature-related disclosures. ACC Limited is the first Indian cement company to do so. The organization is becoming younger, more digital-savvy, and focused on smart execution.
Outlook
The company believes the industry will close at almost 8% growth of demand for FY26. Efforts are underway to focus more on trade channels, which is expected to give healthy realizations. ACC is targeting cost reduction to INR 3,800 per ton by March 2027 and INR 3,650 by March 2028.
Source: BSE
