The Q4 FY26 earnings call for Ambuja Cements Limited, ACC Ltd, and Orient Cement, hosted by JM Financial on May 04, 2026, provided a comprehensive review of the group's financial performance, strategic priorities, and operational challenges for the quarter and full financial year ended March 31, 2026. The call featured key management commentary from Director Mr. Karan Adani, CEO Mr. Vinod Bahety, and CFO Mr. Rohit Soni of Ambuja Cements, along with Head of Investor Relations Mr. Deepak Balwani.

FY26 Annual Performance: Record Volumes Amid Sectoral Headwinds

FY26 was characterized by industry consolidation, GST 2.0 reforms, extended adverse weather conditions, global geopolitical factors, and state elections, all of which impacted demand across the cement sector. Against this backdrop, Ambuja Cements delivered what management described as a resilient performance, achieving its highest-ever annual sales volume. The company confirmed it remains debt-free with the highest credit rating, and annual volumes grew well ahead of the industry.

The following table summarizes the key financial and operational metrics for FY26:

The company commissioned 10.7 million tonnes of new grinding capacity at Marwar, Farakka, Sankrail, Sindri, and Krishnapatnam, along with additional clinker capacity of 7 million tonnes at Jodhpur and Bhatapara.

Q4 FY26 Cost Structure: Pressures Peak at INR4,500 per Tonne

Q4 FY26 saw production costs reach INR4,500 per tonne, which management identified as a peak level. The normalized cost for the quarter was approximately INR4,250 per tonne, with an additional INR250 per tonne attributed to cost escalations—primarily driven by the West Asia conflict's impact on packing bag prices in the month of March. Management noted that the month of March recorded a normalized cost of INR4,100 per tonne, before the impact of the INR250 per tonne escalation.

Key cost drivers cited by management for Q4 FY26 included:

• Higher freight costs due to increased primary and secondary sale lead distances
• Additional goods tax in certain states, including Himachal Pradesh
• Higher packing costs due to supply disruptions from the West Asia conflict in March
• Higher fuel costs from elevated heat consumption, particularly at acquired assets
• Increased branding and sales promotion costs linked to the accelerated push toward trade and premium cement sales
• Higher repairs and maintenance costs at acquired assets, especially Penna
• Lower government incentives due to revised GST rates and exhaustion of incentive periods at certain plants

For the full year FY26, the company reported an average cost of INR4,400 per tonne, approximately 10% above its own internal target. Branding and advertisement costs for full year FY26 were reported at approximately INR70 per tonne. Management confirmed that Q1 FY27 costs are expected to remain approximately flat at the INR4,500 per tonne level, with the cost reduction journey expected to accelerate over the remaining three quarters of FY27.

Acquired Assets: Utilization Challenges at Penna and Sanghi

The turnaround of acquired assets—Penna Cement and Sanghi Industries—took longer than anticipated, with both plants recording below-target utilization levels and higher-than-expected maintenance capital expenditure requirements. Penna's geographic concentration in South India, a region that experienced significant demand weakness in Q4 FY26, contributed to higher shutdowns and breakdowns during the quarter. Together, Penna and Sanghi hold 19 million tonnes of capacity, and management targets a utilization improvement of at least 5% to 10% for these assets in FY27.

Management acknowledged that breakdowns at acquired assets, particularly Penna and Sanghi, were a key contributor to higher repairs and maintenance costs. Mr. Karan Adani noted that a significant portion of the maintenance work that was previously deferred had to be undertaken during the quarter, and that the right contractor choices and full engineering completion will be prioritized for future projects.

Portfolio Integration and Balance Sheet Updates

During FY26, Ambuja completed the amalgamation of Sanghi Industries and Penna Cement with Ambuja Cements. The amalgamation of ACC and Orient Cement remains under process as part of the One Cement platform initiative. Management highlighted that the consolidated balance sheet now reflects the finalized purchase price allocation for Orient Cement and Penna Cement, previously reported on a provisional basis. This resulted in marginal changes to the balance sheet relating to the classification of goodwill and other intangible assets, as well as changes in depreciation and deferred tax accounting in the profit and loss statement.

Management also clarified that FY25 and FY26 financials are not directly comparable on a like-for-like basis, as FY25 does not include Orient Cement, while Penna was consolidated from August 16, 2025 (7.5 months in FY25 versus 12 months in FY26), and Orient Cement was included for only 11 months in FY26. On working capital, core working capital improved year-on-year from 30 days to 20 days. ACC's negative operating cash flows were attributed to receivables from Ambuja under the Master Service Agreement (MSA), which management indicated would be offset against an Inter-Corporate Deposit (ICD) in the coming quarter following shareholder approval.

Capacity Expansion and Capital Expenditure: A Calibrated Approach

Management outlined a recalibrated capital expenditure and capacity expansion strategy, emphasizing disciplined capital allocation and optimization of existing assets before pursuing new greenfield projects. Mr. Karan Adani stated that the target project IRR has been set at 18%, and confirmed that inorganic opportunities continue to be evaluated but organic development and greenfield expansion remain the primary focus.

The previously communicated long-term capacity target of 155 million tonnes has been deferred in terms of timeline, with FY30 now cited as a revised reference point. The 15 million tonnes debottlenecking program across existing assets was confirmed to remain in place, subject to timing adjustments based on return on investment considerations. Management also noted that capacity recalibration involves relocating grinding units closer to key markets—particularly in North UP, Bihar, Southern Gujarat, and Maharashtra—to reduce logistics costs, while Sanghi is being progressively repositioned as a predominantly clinker-focused facility.

Cost Reduction Roadmap and Strategic Priorities for FY27

Management provided detailed cost reduction guidance and strategic priorities for FY27 and beyond. Mr. Karan Adani confirmed that INR500 per tonne of cumulative cost reduction is targeted over the next two years, while reaffirming that the longer-term cost target of INR3,650 per tonne remains a goal, with the INR500 figure representing the committed near-term reduction.

Key savings drivers identified include fly ash raw material cost reduction pending railway infrastructure completion, further improvement in green power share, and heat consumption efficiency gains. Management noted a savings potential of INR150 to INR200 per tonne from raw material and green energy components alone. On cement pricing, management noted a modest improvement of approximately INR10 per bag for the March quarter, with select geographies seeing increases of INR15 to INR20 per bag, and April pricing trending approximately INR10 per bag above March levels. Management acknowledged that softening demand continues to limit the industry's ability to fully pass on cost increases, making internal cost discipline the primary lever for margin protection.

ACC Limited has notified the stock exchanges of its plan to conduct investor and analyst interaction meetings as part of a non-deal roadshow scheduled across three major Indian cities from May 11 to May 13, 2026. The intimation was filed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and was communicated to both the National Stock Exchange of India Limited and BSE Limited.

Roadshow Schedule

The meetings will be held in a physical format, encompassing both 1x1 and group sessions, running from 10.00 am to 06.00 pm local time each day. The following table outlines the detailed schedule:

Disclosure Compliance

ACC Limited has clarified that all discussions during these interactions will be based solely on publicly available information. The company has explicitly stated that no unpublished price sensitive information relating to the company will be disclosed during the interactions, ensuring compliance with applicable regulatory requirements.

The intimation has also been made available on the company's official website at www.acclimited.com . The filing was digitally signed by Bhavik Parikh, Company Secretary and Compliance Officer, on May 06, 2026.