ACC reported its highest-ever quarterly volume and revenue, reaching 11.9 mtpa (up 14% YoY) and Rs 60 billion, respectively. Standalone revenue rose 11.3% YoY (1.9% QoQ) to Rs 60.1 billion, missing our estimate of Rs 64.9 billion. Strong volume growth helped offset the impact of weaker realizations. Sales volume grew a healthy 14.4% YoY (11.2% QoQ) to 11.9 mtpa, in line with our estimate of 11.5 mtpa.
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Systematix Report
ACC Ltd. reported strong volume growth in the current quarter, reflecting its solid brand recall and robust demand traction. While realizations remained under pressure due to regional pricing headwinds, the impact was largely offset by scale benefits and cost efficiencies.
With consistent performance in core markets and increasing trade share, we remain optimistic that pricing discipline and premium product traction will help normalize realizations going forward.
The company’s leadership in green blended cement and rising share of premium offerings continues to support margins. ACC’s rail-to-road logistics optimization also adds structural cost advantages.
We continue to expect ACC’s capacity growth to outpace industry (7–8%) by 400–450 bps over FY24–FY28E, with upcoming expansions likely to unlock the next leg of growth.
The stock currently trades at an attractive 7.8x/5.8x FY26E/FY27E EV/Ebitda. We roll over our estimates to FY27E valuing ACC on 11x FY27E EV/Ebitda to arrive at a target price of Rs 2,940. We maintain Buy on the stock.
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