ACC Ltd, an Adani Group cement firm, on Tuesday reported 91.7 per cent fall in consolidated net profit to Rs 93 crore for September quarter FY27, on account of decline in sales volume due to a Master Supply Agreement with the parent entity.
The company had posted a profit of Rs 1,119 crore in the July-September period, according to a regulatory filing from ACC, a subsidiary of Ambuja Cements.
The year-ago profit "includes income tax provision reversal of Rs 659 crore relating to earlier period and interest on income tax refund of Rs 205 crore." Revenue from operations was down 5.24 per cent year-on-year to Rs 5,656 crore in September quarter FY27. Total expenses were up 2.46 per cent at Rs 5,602 crore.
In the quarter, revenue from the cement business was down 6.9 per cent at Rs 5,206 crore. According to the company, the decline in sales volume was due to "higher MSA (Master Supply Agreement) volume with parent Ambuja Cements" in Q2FY26.
Cement makers enter into MSA with parent entities to optimise operational logistics and drive consolidated volume growth.
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However, ACC's revenue from Ready Mix Concrete (RMC) was up 26.4 per cent to Rs 574 crore in the quarter. The company achieved quarterly volume of 1.07 million cubic metres in Q2 FY27 registering 19 per cent YoY growth in the segment.
Total income of ACC, which includes other income, was up 10.45 per cent to Rs 5,587.76 crore in the second quarter.
"While the reported numbers are not strictly comparable due to the impact of MSA, the underlying business momentum remains encouraging, supported by our trade partners. Industry demand remains supportive and is expected to strengthen post-monsoon, aided by housing, infrastructure and capital expenditure while improving pricing momentum should moderate the impact of elevated fuel and energy costs," Whole-time Director and CEO Vinod Bahety said.
In the first half (H1), ACC's total consolidated income was down 7.66 per cent to Rs 11,657 crore.
ACC said Q2 FY27 was marked by geopolitical uncertainties, monsoon impact, seasonal shutdowns and elevated energy costs amid global uncertainties and constraints in domestic coal availability.
However, the medium-term demand outlook continues to be supported by infrastructure investment, urbanisation, rural housing and industrial activity, it said.
"ACC continues to focus on operational efficiency, premiumisation, logistics optimisation and disciplined capital allocation. Its improving business mix, expanding Ready-Mix Concrete network, trusted brand, premium and sustainable product portfolio, and strong balance sheet provide a solid foundation for growth," it said.
Shares of ACC Ltd on Tuesday settled at Rs 1,142.35 on BSE, down 2.14 per cent from the previous close.
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