Earnings call transcript: trade share up 6% to 74%, FY27 cost target of INR4,250 per metric ton
ACC has shared the transcript of the earnings conference call on its unaudited results for the quarter and half year ended September 30, 2026.
By ScoutQuest · · 3 min read
- Trade Volume / Trade Share
- Trade volume grew 8.6% Y-on-Y, trade share rose 6% to 74%
- Expansion Projects
- 14 expansion projects to add approximately 30 million tons of cement and 10.3 million tons of clinker capacity
- FY27 Cost Target
- FY27 cost target of INR4,250 per metric ton, against current total cost of INR4,410 per metric ton
What was shared
ACC's exchange letter dated November 3, 2026 attaches the transcript of the earnings conference call on its unaudited financial results (standalone and consolidated) for the quarter and half year ended September 30, 2026, held on October 29, 2026. The transcript is of the Ambuja Cements Q2 FY27 earnings conference call, addressed by CEO Vinod Bahety and CFO Rohit Soni.
Volume and product mix
- Trade volume grew 8.6% Y-on-Y and trade share rose by 6% to 74%.
- Premium products rose by 2% to 37% of trade sales; the share of blended cement improved from 77% to 82%.
- Regional trade volume growth: North 13% Y-on-Y, Central 9%, West 14%, South 13%; East broadly in line with last year.
- Ready-mix concrete volume was 1.07 million cubic meters, up 19% Y-on-Y, across a network of almost 125 plants.
- The consolidated summary quoted in the call opens with cement sales volume of 16.5 million metric ton and revenue from operations of INR9,197 crores.
Prices and costs
- Price sustained at INR255 per bag in the monsoon quarter; management said INR10 per bag has already been realised this month.
- Total cost stood at INR4,410 per metric ton; excluding the impact of geopolitical conflict it was around INR4,182 per ton on a normalised basis.
- Management said it is on track to achieve the FY27 cost target of INR4,250 per metric ton.
- Net power cost was INR4.8 per unit, compared with INR6 per unit in Q2 FY26 and INR4.3 per unit in Q1 FY27; green power share stood at 61%.
- Fuel cost was INR1.87 per 1,000 kilo calorie, against INR1.60 a year earlier and INR1.66 in the previous quarter.
- Primary lead was reduced from 265 kilometer to 254 kilometer, and the working capital cycle improved by 10 days.
Capacity and growth pipeline
- 14 expansion projects to add approximately 30 million tons of cement and 10.3 million tons of clinker capacity.
- Grinding additions: 15.2 million tons in the West cluster, 11.6 million tons in the East cluster and 2.9 million tons in the North cluster.
- New clinker capacity of 4 MTPA at Maratha in Maharashtra, 4 MTPA at Umrangso in Assam and 2.25 MTPA at Mundra.
- 4.6 million tons was commissioned in the quarter across Dahej, Salai Banwa and Kalamboli; 3.2 million tons across Bathinda and Jodhpur has stabilised; 2.4 million tons at Warisaliganj is to be commissioned in the second half of FY27.
Guidance and forward-looking statements from management
- Volumes are expected to grow ahead of the industry in the second half of FY27, supported by accelerated trade volumes and calibrated institutional sales.
- FY27 cost target of INR4,250 per metric ton.
- The share of renewable power consumption is expected to increase in the second half, supporting lower power costs.
- The pace of growth in the ready-mix concrete business is expected to accelerate in the coming quarters.
- The proposed merger of ACC and Orient Cement with Ambuja Cement will now proceed to NCLT for final approvals; subject to requisite regulatory, statutory and NCLT approvals, completion is expected within this financial year. Management said the proposed merger is expected to simplify the corporate structure, unlock operating synergies and be earnings per share accretive.
How to read it
The tone of the disclosure is constructive, with management pointing to trade-led volume growth, a richer product mix and cost actions. It also flagged operating conditions it called challenging, including geopolitical conflicts, monsoon-related headwinds, higher energy costs and constraints in domestic coal availability. The company also mentioned its plant shutdowns for major plants being completed, which it linked to expected volume growth in the second half. All forward-looking items are subject to the risks management itself flagged.
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More numbers
- Trade volume growth year-on-year8.6%
- Trade share of sales74%
- Premium products share of trade sales37%
- Planned cement capacity addition from 14 projectsapproximately 30 million tons
- Cement price per bagINR255 per bag
- Total cost per metric tonINR4,410 per metric ton
- FY27 cost target per metric tonINR4,250 per metric ton
- Revenue from operationsINR9,197 crores
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