Q2 2026 ACC Ltd Earnings Call Transcript
Key Points
- ACC Ltd (BOM:500410) reported a significant increase in EBITDA, reaching INR 1,060 per metric tonne, a 32% year-over-year growth.
- The company achieved a record sales volume of 16.6 million tonnes, marking a 20% year-over-year increase, significantly outpacing the industry average growth of 4%.
- ACC Ltd (BOM:500410) has successfully reduced total costs by 5% year-over-year, driven by lower kiln and fuel costs.
- The company is targeting a further reduction in total costs to INR 4,000 per metric tonne by the end of FY26, with plans to reduce it further to INR 3,650 by FY28.
- ACC Ltd (BOM:500410) remains debt-free with a strong credit rating of Crisil AAA stable and short-term A1+.
- Despite the positive financial performance, the company faces challenges with increased working capital, which rose by INR 2,000 crore in the first half of the fiscal year.
- The integration of acquired assets like Penna and Sanghi has resulted in lower EBITDA contributions compared to the base capacity.
- There are concerns about the sustainability of the 20% volume growth, as the acquired assets mature and the base increases.
- The company has experienced delays in the commissioning of several projects due to external factors like torrential rains.
- ACC Ltd (BOM:500410) faces challenges in maintaining high utilization rates, with current consolidated capacity utilization at around 65% to 67%.
Ladies and gentlemen, good day, and welcome to the Ambuja Cement Limited Q2 and FY26 earnings conference call hosted by BNP Paribas Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Nirransh Jain. Thank you, and over to you, sir.
Yeah, hi. Thank you. Good evening, everyone. On behalf of BNP Paribas Securities India, we welcome you all to the Q2 FY26 earnings call of Ambuja Cements Limited.
Without any further delay, I'll hand over the call to Mr. Deepak Balwani, Head of Investor Business. Over to you, sir.
Yes, thank you. On behalf of Ambuja Cements, I'm pleased to welcome all the participants to our quarter two FY26 earnings call. Before we start, please note that this call may include forward-looking statements based on our current beliefs and expectations. These are not guarantees of future performance and may involve
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