Indian cement maker ACC's profit falls as costs squeeze margins
- Revenue rose 17.6% to 70.54 billion Indian rupees
Adani Group-owned Indian cement maker ACC’s fourth-quarter profit slumped 66.2% to 2.49 billion rupees ($26.2 million) on Thursday, as higher input costs offset strong volume growth.
Revenue rose 17.6% to 70.54 billion rupees, helped by an 8% growth in cement sales volumes
The firm’s total expenses rose 22.1% to 67.44 billion rupees, while operating EBITDA margin fell to 8.8% from 13.6% a year ago
Cost pressures from fuel, diesel, packaging bags and rupee depreciation linked to the Middle East conflict impacted ACC’s earnings, with the impact expected to continue into the first half of fiscal 2027
Rise in demand in the fiscal year is expected to remain around 5% amid monsoon risks and fuel-price volatility, ACC said
Indian cement industry has faced headwinds from election delays, extended monsoon season, and Middle East-driven input cost inflation over the past few quarters, per Nomura
On Monday, India’s largest cement maker and peer UltraTech Cement topped analysts expectation for fourth-quarter profit
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