acc delivered a disciplined financial performance in Q1FY27, reporting consolidated revenue of ₹9,500 crore and a net profit after tax (PAT) of ₹660 crore. The company’s operating EBITDA stood at ₹1,589 crore, reflecting an improvement in EBITDA margins by 331 basis points to 16.7%. Despite industry-wide pressure from higher imported fuel prices and elevated freight costs due to West Asia geopolitical tensions, Ambuja Cements maintained profitability through strategic cost optimizations and a shift toward higher-value trade sales. Management highlighted that the quarter included scheduled maintenance for nearly 12% of kilns, absorbing an additional cost of INR50 per metric ton, while building strategic inventories of clinker and coal to mitigate future supply risks.

The transcript of the earnings conference call, hosted by Nomura on July 28, 2026, was uploaded to the company’s website on August 03, 2026. Vinod Bahety, Chief Executive Officer, emphasized that the company is prioritizing value creation over volume growth, a strategy that has improved the share of trade sales from 74% to 78% of overall sales. Premium products now comprise 34% of trade sales. Net operating costs reduced sequentially by INR206 per metric ton to INR4,241, putting the company on track to meet its FY27 guidance of INR4,250 per ton. This reduction was achieved despite absorbing approximately INR110 per ton in costs related to geopolitical escalations.

Operational Efficiency and Cost Leadership

Ambuja Cements strengthened its competitive advantage through operational excellence, improving its clinker factor by approximately 3% to 64% and increasing the share of blended cement to 85%. Key drivers of cost reduction included optimized raw material sourcing, particularly fly ash, and enhanced utilization of renewable energy (RE). The company’s RE power capacity has risen to 973 megawatts, up by nearly 500 megawatts over the past year, reducing unit power costs from INR5.9 to INR4.9 per kWh. Waste Heat Recovery System (WHRS) capacity stands at 228 megawatts, with plans to expand this further. Management outlined additional savings potential of INR130–INR150 per ton from initiatives such as reducing primary lead distance by another 15 kilometers and optimizing logistics through Better Coal Freight Cost (BCFC) rates.

Capacity Expansion and Capital Allocation

The company continues to execute its capacity expansion program, aiming to increase installed capacity to 119 million tons by the end of FY27, adding 10.2 million tons. Trial runs have commenced at the Dahej expansion (1.2 million tons), while Salai Banwa (2.4 million tons), Bhatinda (1.2 million tons), and Jodhpur (2 million tons) are either operational or stabilizing. Kalamboli (1 million tons) and Warisaliganj (2.4 million tons) are expected to come online in Q2FY27. A new clinker line at Maratha is targeted for commissioning in Q1FY28. Total capital expenditure for FY27 is estimated at approximately ₹6,500 crore, with around 25% (₹1,500–₹1,600 crore) already deployed in Q1. Management clarified that there are no plans to permanently mothball assets; temporary closures affecting roughly 3.5 million tons of annual capacity are part of optimization efforts expected to last six months.

What the Numbers Show

A critical analytical observation from the earnings call is the divergence between volume decline and margin expansion. While total volumes saw a year-on-year decline—with trade volumes down 2% and non-trade volumes down 21%—EBITDA margins improved significantly. This indicates that Ambuja Cements is successfully shedding low-margin institutional business in favor of higher-margin trade channels, even if it means accepting lower overall throughput in the short term. Furthermore, the company generated ₹140 crore in revenue from selling surplus renewable energy, which management noted contributes directly to bottom-line profitability given the low operational expenditure (hardly 5%) associated with these assets. This dual strategy of cost arbitrage via green energy sales and mix-shift toward premium trade products underpins the resilience of margins despite external cost pressures.

ACC Limited has uploaded the audio recording of its analysts and investors call, which discussed the unaudited financial results (standalone and consolidated) for the quarter ended June 30, 2026. The recording is now available on the company's website at www.acclimited.com . This submission follows a previous letter dated July 14, 2026, and was formally communicated to the National Stock Exchange of India Limited and BSE Limited on July 28, 2026.

The web link to access the audio recording is provided on the company's investor relations page. The filing was signed by Bhavik Parikh, Company Secretary & Compliance Officer of ACC Limited, on July 28, 2026.

Filing Details

Key Takeaways

• The audio recording covers both standalone and consolidated unaudited financial results.
• The link to the recording is hosted on the official company website.
• The filing serves as a continuation of the notice issued on July 14, 2026.