ACC Ltd Q1 FY27 Results Analysis: Earnings Plunge 61%, Margin Collapses 450 bps

ACC Ltd reported Q1 FY27 numbers with revenue of Rs. 5,790.00 Cr (-7.76% YoY) and PAT growth of -60.80% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

ACC reported a weak Q1 with revenue down 7.8% YoY and EBITDA margin collapsing 4.5pp to 7.9%, driven by pricing pressure and cost deleverage. Earnings fell 61% YoY, and both cement and RMC segments saw severe margin compression. The company is undertaking restructuring but near-term outlook remains challenging.

Key Investment Insights

Key Positives

• Ready Mix Concrete revenue grew 20.4% YoY to Rs.501 Cr, showing strong volume growth.
• Cost of materials consumed declined 14.8% YoY (standalone), faster than revenue.
• Company had zero borrowings and cash of Rs.537 Cr as of March 31, 2026, indicating a strong balance sheet.

Risk Factors

• Consolidated revenue declined 7.76% YoY to Rs.5,790 Cr.
• EBITDA margin compressed 4.5pp YoY from 12.4% to 7.9%.
• PAT declined 60.8% YoY to Rs.147 Cr.
• Normalized PAT (excluding VSS) declined 56.1% YoY.
• Cement segment margin collapsed from 8.56% to 3.59% EBIT margin.
• RMC segment margin fell from 5.05% to 1.40% despite revenue growth.