ACC Profit Surges Sixfold on Tax Write-Back, Record Sales Volume

ACC Ltd. posted a strong September quarter as its net profit jumped nearly sixfold on year to ₹11.19 billion, driven by a large tax write-back and record sales volumes. Operating earnings before interest, tax, depreciation, and amortisation almost doubled on year, lifting profitability.

The cement maker benefited from a tax write-back of ₹3.56 billion and reversal of ₹6.58 billion held as provisions for past tax liabilities. It also received a cash refund of ₹8.28 billion, which contributed to the bottom line. Other income rose 41% to ₹2.23 billion, boosted by interest earned on the tax refund.

Revenue climbed 34% on year to ₹58.96 billion, supported by a 10 million-tonne sales volume — the company’s highest for the September ended quarter. EBITDA rose 94% to ₹8.46 billion, with the margin improving to 14.3% from 9.4% a year earlier.

ACC attributed the strong performance to synergies with Ambuja Cements and group companies such as Penna, Sanghi, and Orient, which helped improve efficiency. Expansion projects at the Salai Banwa and Kalamboli units are on track to add 3.4 million tonnes of capacity by December, while debottlenecking initiatives are expected to unlock an additional 5.6 million tonnes by 2027–28 at lower capital cost.

Revenue from cement operations rose to ₹55.19 billion from ₹43.73 billion a year ago, while ready-mix concrete sales increased to ₹4.54 billion from ₹2.89 billion. For April–September net profit rose 167% on year to ₹14.95 billion, and revenue grew 24% to ₹119.32 billion.

The company said it continues to improve cost efficiency across key inputs such as raw materials, power, fuel, and freight. It expects its ongoing debottlenecking and logistics initiatives to lower costs by at least 5% and improve utilisation by 3%. ACC plans to fund its current expansion through internal accruals and treasury resources.