Event Participants
Executives
4 Karan Adani, Rohit Soni, Vinod Bahety, Deepak Balwani
Analysts
21 Amit Murarka, Ashish Jain, Atishay, Bharat C. Shah, Bhavin Chheda, Eshan, Girija Ray, Indrajit Agarwal, Jyoti Gupta, Kamlesh, Kunal Shah, Manish Somaiya, Navin Sahadeo, Pinakin, Prateek Kumar, Pulkit Patni, Raashi, Rajesh Ravi, Rajesh Toshniwal, Rahul Gupta, Ritesh Shah, Satyadeep Shah, Shravan Shah, Siddharth Mehrotra
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹9,500 crores | Q1 FY27 revenue; no explicit YoY/QoQ comparison provided |
| Operating EBITDA | ₹1,589 crores | EBITDA margin improved 331 bps QoQ to 16.7% |
| EBITDA per ton (blended) | ₹931 | Gray cement EBITDA/ton at ₹911; includes RMX contribution |
| Net operating cost | ₹4,241/ton | Reduced ₹206/ton QoQ; includes absorption of ₹110/ton West Asia cost impact |
| Profit After Tax | ₹660 crores | Q1 FY27 PAT |
| Net Worth | ~₹72,000 crores | As of June 30, 2026 |
| Total Volume | Down 7% YoY | Trade volume -2% YoY, Non-trade -21% YoY; July trade volume +8% YoY |
| Trade Sales Share | 78% | Improved from 74% QoQ; target >75% for year |
| Premium Products Share | 34% of trade sales | Continued traction in premiumization strategy |
| Blended Cement Share | 85% | Increased from previous quarter; supports margin and sustainability |
| Capacity Utilization | 65% | Overall; selective cluster-wise optimization |
| Installed Capacity | 109 million tons | Expanding to 119 million tons by end FY27 (+10.2M tons) |
| Clinker Factor | 64% | Improved ~3% QoQ; structural cost advantage |
| RE Power Capacity | 973 MW | Up ~500 MW YoY; target 1,122 MW by FY28 |
| WHRS Capacity | 228 MW | Target 376 MW; all new kilns to include WHRS |
| Power Cost | ₹4.9/kWh | Reduced from ₹5.9/kWh; green power integration driving savings |
| Manpower Cost | ₹222/ton | Maintained despite inflationary pressures |
| Logistics Lead Distance | Reduced 20 km QoQ | Lowered logistics cost by ₹10/ton; further 15 km reduction targeted |
| Green Power Sales | 45 crore units | Revenue ~₹140 crores in Q1; 50% expected to be consumed in Q2 |
| Fly Ash Sales | ~₹15 crores | Q1 revenue; long-term agreements enable surplus monetization |
| Capex Spend Q1 | ₹1,500-1,600 crores | ~25% of FY27 guidance of ₹6,500 crores |
| AFR/TSR Rate | ~7% | Target 12-15% in FY27, 25% long-term |
| Coal Blocks | 3 blocks | First operational in ~30 months; 5-6 year payback |
Geographic & Segment Commentary
North (~25% volume): Highest EBITDA cluster; trade volume +2% YoY with sharp reduction in lower-margin non-trade; capacity expansions at Bhatinda (1.2M tons), Marwar Mundwa, and Penna Jodhpur (3M tons clinker) strengthening position.
West (~30% volume): Balanced trade/non-trade mix; both segments grew positively in Q1; key markets Mumbai/Gujarat support higher-margin non-trade; Kalamboli expansion (1M tons) underway.
East (~25% volume): Sustained trade volumes with healthy EBITDA margins; Warisaliganj, Bihar expansion (2.4M tons) expected Q2; strong demand traction continuing.
Central (~10% volume): Higher premium cement proportion enabling better margins; improved blended cement share; Salai Banwa, UP expansion (2.4M tons) trials commenced.
South (~10% volume): Consciously reduced low-margin volumes (both trade and non-trade); investing in channel network to pivot to trade; ~1M tons of negative EBITDA volumes curtailed; acquired assets (Penna, Sanghi) integration progressing with Sanghi at 87% utilization.
Company-Specific & Strategic Commentary
Profitable Growth via Trade Focus & Premiumization: Trade share improved to 78% (from 74%), premium products at 34% of trade sales; July trade volume +8% YoY validates strategy; brand equity (Ambuja/ACC/Adani Cement) driving channel pull.
Structural Cost Leadership: Net cost at ₹4,241/ton (down ₹206 QoQ) despite ₹110/ton geopolitical cost absorption; clinker factor 64% (-3%), RE power at ₹4.9/kWh (-₹1), lead distance -20km; visibility to ₹4,250/ton FY27 target with ₹130-150/ton additional savings pipeline (logistics ₹35, raw material ₹30, energy ₹50, fixed cost ₹10-15).
Disciplined Capital Allocation: 10.2M tons capacity additions on track (Dahej, Salai Banwa, Bhatinda, Jodhpur commissioned; Kalamboli, Warisaliganj Q2; Maratha clinker FY28); target 119M tons by end FY27; focus shifting from capacity addition to productivity/returns; ~₹6,500 crores FY27 capex (25% spent Q1).
Future-Ready Enterprise - Green Power & Sustainability: RE capacity 973MW (+500MW YoY), target 1,122MW by FY28; green power share 34% consumption (48% including sales), target 60% by FY28; WHRS 228MW→376MW; AFR target 12-15% FY27; fly ash long-term agreements enabling cost optimization and surplus monetization.
Acquired Assets Integration: Orient at 87% utilization with minimal investment needed; Penna requires channel development in South + <₹150 crores AFR/WHRS capex; Sanghi improving with ₹600 crores jetty expansion for coastal grinding units; no permanent mothballing - temporary suspension of ~3.5M tons (old ACC + one acquired plant) for 6-month optimization.
Digital & Talent Transformation: SLA (Service Level Agreements) implementation across plants/logistics progressing; young talent pipeline with structured L&D; technology platform for logistics optimization under development.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Volume Growth | 8% YoY in FY27 | Driven by trade segment (+8% in July); non-trade managed selectively in high-margin markets; new capacity (10.2M tons) supports volume delivery |
| Net Operating Cost | ₹4,250/ton for FY27 | Q1 at ₹4,241/ton after absorbing ₹110/ton geopolitical impact; ₹130-150/ton savings pipeline provides cushion |
| Installed Capacity | 119M tons by end FY27 | +10.2M tons from current 109M tons; staggered commissioning through FY27 |
| Green Power Share | 60% by FY28 | From 34% consumption (48% inc. sales); requires plant-grid connectivity (2-3 quarters) and capacity additions |
| AFR/TSR Rate | 12-15% in FY27, 25% long-term | From current ~7%; investments made; confidence high on near-term trajectory |
| Cost Reduction | Additional ₹250/ton in FY28 | Target ≤₹4,000/ton by end FY28; driven by efficiency, RE, logistics, clinker factor, fixed cost |
| Capex | ~₹6,500 crores FY27, similar FY28 | Growth + efficiency capex; 25% spent in Q1; run rate expected to continue |
| Trade Sales Share | >75% for FY27 | Current 78%; focus on brand equity, channel expansion, premiumization |
| Blended Cement Share | Increase from 85% | Ongoing focus across clusters; supports cost and sustainability |
Risks & Constraints
| Risk | Context |
|---|---|
| Geopolitical Fuel Cost Volatility | West Asia tensions driving imported fuel/freight cost uncertainty; ₹110/ton impact absorbed in Q1; mitigated by 1-month clinker + 3-month coal inventory and ₹130-150/ton savings pipeline |
| Monsoon & Near-Term Demand Softness | Q1 impacted by diesel/packing bag shortages and geopolitical disruptions; July recovery (+8% trade) suggests transient impact but monsoon may affect Q2 volumes |
| Acquired Asset Integration Execution | Penna (South) requires channel rebuild; Orient MSA accounting obscures standalone profitability; Sanghi jetty expansion execution risk; temporary plant suspensions (~3.5M tons) may extend beyond 6 months |
| Green Power Grid Connectivity | 973MW RE capacity but only 34% consumed (48% inc. sales); plant-grid connectivity delays force merchant sales at lower realization vs. captive consumption savings; 2-3 quarters to resolve |
| Brand Strategy Uncertainty | No ACC/Ambuja brand merger planned; company merger announced but brand architecture unclear; potential channel confusion during transition |
| ICD & Group Structure Complexity | ICDs between ACC/Orient/Ambuja at 8% coupon; Ambuja at zero debt but parent debt maturities (₹22-23K crores FY27); MSA arrangements complicate standalone entity analysis |
| Depreciation Accounting Changes | Merger-related true-up entries causing quarterly volatility; auditor deliberations on maintenance cost amortization (4-quarter spread) not yet finalized |
| Non-Trade Volume Profitability | Historical non-trade growth at negative/marginal EBITDA dragged returns; current strategy accepts volume loss for value but risks permanent market share cession if cost competitiveness not achieved |
Q&A Highlights
Volume Growth & Trade Strategy
- Question: With Q1 volumes -7% YoY, how