ACC Limited has provided updated responses on capital market queries regarding financial results for the quarter and half year ended September 30, 2025. The company is expanding capacity, improving limestone reserve management, and investing in renewable energy to drive growth and reduce costs. ACC is targeting cost reduction to Rs 3,650 PMT by FY2028.
Capacity Expansion and Growth Plans
ACC Limited is actively expanding its production capacity. With the ongoing expansion of the Salai Banwa & Kalamboli plant, expected to be commissioned in Q3 2025, the company’s capacity will increase to 43.7 MTPA. Plant debottlenecking initiatives will further unlock 5.6 MTPA capacity over the next 24 months. Access to Ambuja’s clinker capacities under the MSA will further support double-digit volume growth.
Limestone Reserve Management
ACC is proactively managing its limestone reserves by securing new blocks in locations like Wadi, Chanda, and Kymore, leading to improved resource quality and cost efficiency. The company is collaborating with parent Ambuja for clinker supplies under a MSA, mitigating risks associated with limestone availability.
Renewable Energy Investments
Parent Ambuja is investing Rs. 6000 Crs to establish 1000 MW of renewable energy (RE) capacity (700 MW solar and 300 MW wind). ACC will benefit from this RE power supply. Currently, 556 MW of power is operational, with ACC receiving approximately 25% of it. This has already helped reduce power costs by 9%, from Rs. 6.54 to Rs. 5.95/kwh.
Cost Reduction and Future Expectations
ACC has achieved substantial cost reduction compared to its competitors in raw materials, power & fuel, and freight. Operational leverage, group synergies, and parent company synergies are driving this improvement. Investments in assets like Lakheri, Jamul, Wadi, and Kymore have enhanced efficiency. ACC aims to reduce costs to Rs. 3,650 PMT by FY2028.
Financial Performance Update (Q2 2025)
For the quarter ended September 30, 2025 (Q2 2025):
- Cement Volume: 10.0 MnT (up 16% YoY)
- Clinker Volume: 1.2 MnT (up 74% YoY)
- EBITDA: Rs 849 PMT (Cement basis, up 67% YoY)
The trade receivables will get cleared in Q3 2025. Interest accrued on Income Tax refund has been received in October 2025. MSA short-term trade advance to Ambuja and other associates will get cleared in Q3 2025.
Source: BSE
