Cement production company ACC posts a 4.35% increase in net profit for the April-June period
In a promising sign for the Indian cement sector, ACC Ltd has reported a positive Q1 FY26 outlook with strong growth in demand and profitability. The company's consistent performance is attributed to a rise in demand for affordable housing in both rural and urban areas, higher infrastructure spending, and growth in the commercial sector, including increased investments in core and allied infrastructure.
ACC Ltd's cement demand grew by 4% in Q1 FY26, driven by favourable macroeconomic factors and sustained demand from the housing and infrastructure sectors. This growth translated into a 4.36% increase in net profit for the quarter, with profit after tax at ₹375.42 crore compared to ₹359.74 crore in Q1 FY25.
The company's net consolidated total income also saw a significant rise, growing by 16.79% to ₹6,155.58 crore in Q1 FY26. Notably, ACC reported its highest-ever volume in Q1 series, which was 11.5 million tonnes. The revenue from the cement business rose by 16.7% to Rs 5,714.95 crore, while the revenue from ready mix concrete jumped 26.67% to Rs 416.28 crore in the June quarter.
ACC's Whole-Time Director & CEO, Vinod Bahety, stated that the company's Q1 performance reflects the strength of its integrated strategy anchored in premium sales, operational excellence, and cost leadership. The company expanded its ready-mix concrete footprint during the quarter, adding 12 plants, indicating capacity expansion aligned with demand growth.
The strong performance of ACC Ltd is reflective of the broader cement sector in India, with demand revival and improved profitability leading to a rally in cement sector shares across the country. Other cement companies reported similar strong performances backed by infrastructure-driven volume growth.
Looking ahead, the outlook for Q2 FY26 remains strong, reflecting confidence in continued demand momentum. For FY26, cement demand in India is projected to grow between 6-7%, supported by the rising demand for affordable housing and higher infrastructure spending.
In conclusion, Q1 FY26 has shown healthy demand and profitability trends for ACC Ltd, with an optimistic outlook for the coming quarters driven by housing and infrastructure activities. The company's strategic focus on premium sales, operational excellence, and cost leadership, combined with favourable market conditions, positions ACC Ltd well for continued growth in the future.
[1] Business Standard, "ACC reports highest-ever volume in Q1 series at 11.5 million tonnes", 2025 [2] Economic Times, "Cement sector shares rally on Q1 earnings, demand revival", 2025
- ACC Ltd's strong Q1 FY26 performance, marked by a rise in net profit and total income, signifies growth in the finance sector, particularly in the business of cement manufacturing and investing in core and allied infrastructure.
- The positive Q1 FY26 outlook for ACC Ltd, coupled with the projected growth in cement demand for FY26, indicates a flourishing Indian cement industry, with potential for further expansions in the business and finance sectors, especially in the fields of affordable housing and infrastructure development.
