💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 5.7% YoY to INR 35,045 Cr in FY25 from INR 33,160 Cr in FY24. The Ready Mix Concrete (RMX) segment revenue grew 7.1% YoY to INR 1,380 Cr in FY25 from INR 1,289 Cr in FY24.

Geographic Revenue Split

The company maintains a national footprint with deep coverage across India. While specific regional % splits are not disclosed, the company operates in 54 cities through its RMX business and has a target to achieve a 20-22% national market share by FY28.

Profitability Margins

Net Profit Margin improved to 11.8% in FY25 from 10.9% in FY24. Return on Net Worth (RoNW) increased to 16.5% in FY25 compared to 15.5% in FY24. H1 FY26 PAT stood at INR 2,243 Cr, a 110% increase YoY, aided by a one-time tax write-back of INR 1,697 Cr.

EBITDA Margin

Consolidated EBITDA margin for H1 FY26 was 19.1% with an EBITDA of INR 3,722 Cr. EBITDA per ton for existing assets (Ambuja + ACC) stood at INR 1,150 in H1 FY26. FY25 EBITDA per ton moderated to INR 916 from INR 1,081 in FY24 due to subdued cement realizations.

Capital Expenditure

The company plans a large capex of approximately INR 38,000 Cr to INR 40,000 Cr between FY25 and FY28. This includes INR 6,000 Cr for 1,000 MW of renewable energy capacity and significant outlays for the Orient Cement acquisition (approx. INR 5,910 Cr) and capacity additions.

Credit Rating & Borrowing

Maintains a CRISIL AAA/Stable rating for long-term debt and CRISIL A1+ for short-term debt. The company remains debt-free at the operating level, with a Debt Service Coverage Ratio of 4.4 times in FY25, down from 19.4 times in FY24 due to higher capex and acquisition activities.

⚙️ Operational Drivers

Raw Materials

Key raw materials include fly ash (specifically wet fly ash), clinker, and gypsum. Raw material costs rose by 3.9% per tonne in FY25, representing approximately 18.6% of total revenue (INR 6,527 Cr in FY25).

Import Sources

Sourcing is primarily domestic within India, utilizing long-term tie-ups for critical materials. Specific states include Gujarat (Adani Corporate House location) and regions near acquired assets like Sanghi (Gujarat) and Penna (South India).

Key Suppliers

Suppliers include group companies for synergies and long-term partners for fly ash and gypsum. Specific external vendor names are not disclosed, but procurement is managed through a centralized Adani Portfolio strategy.

Capacity Expansion

Consolidated sales volume reached 65.2 MTPA in FY25, up from 59.2 MTPA in FY24. The company is expanding through greenfield/brownfield projects and acquisitions (Sanghi 58.08%, Orient 72.66%, and Penna) to reach a significantly higher capacity by FY28.

Raw Material Costs

Raw material costs were INR 6,527 Cr in FY25, up 18% from INR 5,526 Cr in FY24. Procurement strategies involve optimizing the clinker factor and increasing the utilization of wet fly ash to reduce costs per tonne.

Manufacturing Efficiency

Focusing on reducing operating costs to INR 4,000/ton by March 2026 and INR 3,650/ton by March 2028. Efficiency is driven by digitalization, AI integration, and higher capacity utilization of acquired assets.

Logistics & Distribution

Distribution is a major cost component; the company leverages Adani Ports and SEZ synergies to optimize lead distances and freight costs, though specific % of revenue is not isolated.

📈 Strategic Growth

Expected Growth Rate

20-22%

Growth Strategy

Growth will be achieved through a mix of organic expansions and aggressive inorganic acquisitions (Sanghi, Penna, Orient Cement). The strategy focuses on extracting synergies within the Adani Group to reduce production costs, expanding the RMX business (14 new plants in FY25), and increasing the share of premium products.

Products & Services

Cement bags (OPC, PPC), Ready Mix Concrete (RMX), and value-added products like ACC Feathercrete.

Brand Portfolio

ACC, ACC Concrete, ACC Feathercrete, and Adani Ambuja (group brand).

New Products/Services

ACC Feathercrete and expanded RMX solutions. Premium products now account for 35% of total trade sales, growing 28% YoY in volume.

Market Expansion

Targeting a 20-22% market share by FY28 by ramping up utilization in acquired units (Sanghi, Penna) and expanding the dealer network to over 29,000 partners.

Market Share & Ranking

Aims to be a leading player with a 20-22% market share by FY28; currently part of the second-largest cement group in India.

Strategic Alliances

Operates symbiotically with Ambuja Cements and the larger Adani Group (APSEZ, Adani Green) to optimize plant capacities, inventories, and logistics.

🌍 External Factors

Industry Trends

The industry is shifting toward consolidation and green energy. ACC is positioning itself by adding 1,000 MW of renewables and targeting a low-carbon growth strategy with internal carbon pricing.

Competitive Landscape

Competes with UltraTech Cement and other regional players. The industry is seeing rapid consolidation led by the Adani Group.

Competitive Moat

Moat is built on cost leadership through Adani Group synergies (logistics, power, and raw materials) and a massive distribution network. This is sustainable due to the high capital intensity required for competitors to match this scale.

Macro Economic Sensitivity

Highly sensitive to GDP growth and infrastructure spending. Cement demand is cyclical and commoditized, making revenue dependent on government infrastructure projects and housing demand.

Consumer Behavior

Shift toward premium, branded cement and ready-mix solutions for faster construction, which ACC is capturing through its 35% premium product share.

Geopolitical Risks

Exposure to global fuel price volatility (coal/petcoke). Regulatory scrutiny regarding the Adani Group (e.g., US DOJ/SEC developments) could impact financial flexibility and market capitalization.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Environmental Clearances, Water and Air Acts, and waste management rules. Cement industry is under constant scrutiny for carbon emissions and pollution norms.

Environmental Compliance

Assigned an ESG rating of 65 (Aspiring) by NSE Sustainability. Internal Carbon Pricing is USD 28/tonne. Compliance is monitored via Legatrix software.

Taxation Policy Impact

Effective tax rate impacted by a one-time provision reversal of INR 1,697 Cr in Q2 FY26. Standard corporate tax rates apply otherwise.

Legal Contingencies

Lien marked cash of INR 323 Cr is held for CCI (Competition Commission of India) and other ongoing matters. The Adani Group faces ongoing monitoring regarding US regulatory allegations (anti-bribery/corruption).

⚠️ Risk Analysis

Key Uncertainties

Potential adverse regulatory or judicial actions against the Adani Group could restrict access to capital markets. Sustained decline in operating margins below 12% is a key rating sensitivity.

Geographic Concentration Risk

National footprint reduces regional risk, but significant capacity is concentrated in clusters like Gujarat and South India following recent acquisitions.

Third Party Dependencies

Low dependency on third parties for logistics due to APSEZ synergies, but dependent on external suppliers for specialized fuel (petcoke/coal).

Technology Obsolescence Risk

Low risk in core cement manufacturing, but the company is aggressively adopting AI and digital dashboards for real-time audit and operational tracking to prevent efficiency lags.

Credit & Counterparty Risk

Receivables turnover ratio was 20.5 times in FY25. Working capital increase in H1 FY26 suggests a temporary rise in receivables, which is being monitored.