ACC Ltd (NSE: ACC) Q1 2026 Earnings Call dated Jul. 31, 2025
Corporate Participants:
Unidentified Speaker
Deepak Balwani — Head of Investor Relations
Vinod Bahety — CEO & Whole-Time Director
Rakesh Tiwary — CFO
Analysts:
Unidentified Participant
Rahul Gupta — Analyst
Atishy Rathi — Analyst
Harsh Mittal — Analyst
Amit Murarka — Analyst
Navin Sahadeo — Analyst
Rajesh Ravi — Analyst
Ritesh Shah — Analyst
Raashi Chopra — Analyst
Jashandeep Singh Chadha — Analyst
Jyoti Gupta — Analyst
Pathanjali Srinivasan — Analyst
Sumangal Nevatia — Analyst
Kunal Shah — Analyst
Satyam Kesarwani — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The Ambuja Cements Limited Q1FY26 Investor Call hosted by Prabhudas Neeladar Pvt Ltd. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Satyam Ke Fiwani. Thank you. And over to you sir.
Satyam Kesarwani — Analyst
Thank you, Nidhi. Good evening and a very warm welcome to everybody. On behalf of PL Capital, I am pleased to welcome you all to the earnings call of Ambuja Simmons for the first quarter of financial year 2026. We are very happy to have the management with us today for the Q and A session with the investment community. The management is represented by Mr. Vinod Beheti, CEO Ambuja Simmons, Mr. Zakesh Tiwari, CFO, Mr. Deepak Balwani, Head of Investor Relations. We will begin with the opening remarks from the management followed by an interactive Q and A session.
With this I hand over the call to Mr. Deepak Balwani. Over to you sir.
Deepak Balwani — Head of Investor Relations
Yes, thank you. On behalf of Ambudra Siemens, I am pleased to welcome all participants to our earnings call for the first quarter of FY 2026. Ambuja Cement is the 9th largest building material solutions company globally and part of the diversified Adani portfolio. Ambuja Cement is one of the four large scale cement companies globally and the only one in India to have a science based net zero and near term targets validated by the spti. Before we start, please note that this call may include forward looking statements based on our current beliefs and expectations. These are not guarantees of future performance and may involve unforeseen risk and uncertainty.
We are pleased to have with us on the call Mr. Vinod Baisi, Chief Executive Officer and Mr. Rakesh Chiwari, Chief Financial Officer. Now I invite Mr. Vaisi to provide his valuable insights on the quarterly performance. Thank you Deepak. Good evening and a warm welcome to all of you joining us for the first quarter 26 earnings call. Amuda Cement started this fiscal year on high note. Our momentum is built on strong value focus, robust volume growth, price improvement, deeper channel engagement, premium product sales improvement, agile supply chain, stronger brand, full market across and smart cost efficiencies amplified by seamless integration of Orange Cement which we acquired in April 25.
We have reimagined business fundamentals. This has helped us achieve the highest revenue in a quarter, highest quarterly EBITDA and improve our market share by 2%. Our channel network is vibrant, our assets are reliable more our efficiency has improved and our EBITDA gains are well noteworthy. This sets a bold tone for the year ahead as we scale with purpose and precision. We are up on our demand estimates by 1% from 6 to 7% before to now 7 to 8%. Our consoled financial performance highlights for the quarter are as under highest ever sales volume of 18.4 million tonnes up 20% yny with market share up 2% to 15.5%.
Revenue crossed 10,000 crores mark at rupees 10,289 crores up 23% y on y with price gain of 4% supported by higher share of premium products as a percentage of trade sale which is now at 33% up by 43%. YoY cost has improved by Rupees 119 per metric ton yny this has also supported in achieving the highest quarterly EBITDA at rupees 1961crores EBITDA per metric ton of cement at rupees 10.69up 28% Y&Y and EBITDA margin stood at 19.1% up 3.8% and we have a blueprint to achieve our targeted EBITDA of Rs 1,500 per metric ton by 2028 pad we have achieved at rupees 970 crores up 24% y and y earning per share at 3.20 up 22% y and y and net worth stood at rupees 66,436 crores and we continue to remain debt free.
Our rating remains highest at CRISIL, AAA stable and A1 ratings. In the best interest of time I’m not going to discuss the standalone financial performance of the listed companies separately as they are available on the stock exchanges. The merger of Adani Cementation Industries Limited has received all the factory approvals for Sangi and Penna. We have received approvals from both the exchanges BSE and NSE and further process of contract completion is ongoing. We continue to make decisive strides in operational excellence in the quarter. Some of them are as under we are proud to be the lead cement supplier for the world’s highest single arc Senab Railway bridge which speaks volumes of our product quality and trust.
For the fourth year in a row TRA Research has recognized us as the most trusted cement brand. This brand equity is also immensely supporting in terms of volume improvement and price improvements. Our privileged exclusive partnership with CREDAY has gone very well. Continuing this we have launched Nirma Nutserve program along with CREDAI wherein the first event took place in Ahmedabad and this will be hosted in almost 20 plus cities going forward in this financial year our supply chain is becoming smarter, leaner and agile with AI enabled technology. We are proud to be the first in the industry to adopt DigiPin.
We commissioned 5 million tons of capacity grinding capacity over the last three months and target additional another 13 million tons this financial year. We are getting younger with new assets, digitally smart platform and latest code of future young leaders fueling a culture of continuous innovation and excellence. Digitalization initiatives continue to be focused area leveraging the business growth with strong focus on EBITDA maximization, AI driven advanced business and cost optimizer tools. End to end seamless applications of channel partners and the plants of future concept is progressing very well on growth and journey expansion. Our total cement capacity currently stands at 104.5 million tonnes.
In our larger aim of achieving 140 million tonnes by FY28. We are well poised to achieve 118 million tonnes by end of FY26 powered by our strategic groundfield expansions across various sites including Bhattapara, Salai, Banwa, Dahej, Marwar, Kalamboli, Krishnapatnam, Batinda, Jodhpur and Varisali Ganj. Our disciplined capex management is ensuring these timelines are made efficiently enabling us to deliver both scale and profitability on the cost leadership. Our targeted cost reduction journey with the planned initiatives primarily envisages reduction in power and fuel cost, logistics cost and raw materials cost optimization. We have one of the lowest manpower cost at Rupees 2, 223 per metric ton amongst the peers in the industry green power share uptake with every passing quarter it improved by 9.7% to 28.1% and it’s targeted to reach 16% by FY28.
This will reduce the existing power cost which is around 5.9 rupees per unit to almost Rs 4.5 per unit by FY28. The power consumption per metric ton of cement also is expected to improve by at least 5 units basis the efficiency of the new assets and the efficiency improvement of the existing assets. Coal cost has improved from Rupees 1.73 to Rs 1.59 per 1000 Kcal and expected to sustain near these levels. Importantly the heat consumption will improve by at least 35-40 kcal per kg of clinker for the various initiatives outlined including mix of the new kilns.
Primary lead distance reduced by 8km this quarter at 269km and is expected to further reduce by almost 75km when we achieve 140 million tonnes by FY28. This will help to reduce the logistics cost by almost rupees 150 per metric ton also supported by a higher component of rail and sea logistics. Currently our cost is Almost around say 3.25 rupees per ton per km. On the ESG leadership, the celebrity remains our strategic operating system as we are India’s only and globally the fourth large scale cement company to have our science based net zero and near term targets validated by SBTI.
We have commissioned 473 megawatt of renewable energy out of 1000 megawatt achieving almost 28%. As I mentioned earlier we want to achieve 60% by 28. Our green power share has risen consistently and it improved by 9.7% this quarter. We remain an industry leader achieving 12 times water positivity, 11 times plastic negativity, exemplifying responsible stewardship. We continue active global collaborations with wef, gc, ca, UNGC and AFID reinforcing our commitment to setting and achieving ambitious environmental goals on the community and social impact. We continue to positively impact our community through engagement initiatives in education, healthcare, livelihoods and infrastructure.
We are upskilling our communities through robotic labs, drone labs, rural KPOs, youth skilling, women empowerment, creating a blueprint for our inclusive group, making the new era of a holistic education. In the presence of our board members we inaugurated a new building of dav, ACC Public School Kalpashila and a Heritage Wing at our Kaimur plant. Through the Adani Vidyadhan Initiative, our leadership continues to inspire and shape the future of more than 10,000 students across the Adani Vidya Mandir Chedi campus institutions at our plants. In 1Q26 we accelerated our efforts to build recognize and purpose driven partnerships across our network CEO says Samwaz.
A direct engagement platform with channel partners and contractors has deepened trust through open dialogue, recognition and shared growth. These efforts have sparked a strong homecoming of more than 500 dealers, strengthening our distribution network and reaffirming the mutual confidence. Adani Certified Technology act was implemented at more than 21,000 customer sites enhancing the construction, durability and technical superiority, making a significant milestone in scalable impact and customer trust. With more than 325 skill building workshops conducted, we have empowered almost 9,000 plus contractors creating ripple effects in quality, safety and upscaling across the regions. CEO Club, a first of its kind recognition platform in the industry now anchors top performing channel partners contractors into a unified community.
Through certified training, plant visits, safety, gear distribution and family focused experiences, we are building a family of builders aligned with our vision. Dhan Varsha Grahil Akmi Sabagya Awards embodied emotional intelligence in action. This hybrid celebration crew brought together over 50,000 plus families of our dealers, merging performance with purpose and laying foundation for enduring relationships beyond the balance sheet. Coincidentally today also we have a program which is for our influencers which we will see more than 25,000 influencers online and offline coming together to celebrate a program similar to Dhanvarsha on the Industry Outlook Cement demand grew by almost 4% y on y in first quarter FY26 driven by Pradhan Mantri, Awas, Yojana, Pradhan Mantri, Sadhak Yojana, Bharat Mala, Sagar Mala and other infra projects and we remain bullish for this financial year.
We are upping our demand estimate by 1% from earlier 6 to 7% to now 7 to 8%. I now invite our CFO Rakesh to detail our financials in detail further. Thank you.
Rakesh Tiwary — CFO
Thank you Vinod for giving such a strategic and comprehensive outline for Ambuja Singh. It was really great. Good afternoon ladies and gentlemen. It’s a pleasure to connect with you all at this pivotal junction in our growth journey. Over the last few quarters we have consistently articulated our sharp focus on four key pillars Growth Cost Leadership, ESG and stakeholder value Creation. And I’m pleased To share that Q1 financial year 26 has reinforced our conviction and momentum across all these dimensions. Our cement capacity has now reached 105.4 MPa following the successful commissioning of Tankarail and Sindri Brown Field Grinding Unit.
We remain firmly on track to scale up to 118 MTPA by March 26 and 240 MTPA by financial year 28. Our inorganic growth story strategy is progressing seamlessly Tangi, ASEAN, Tutikurun, Pinna and more recently Orient which we have successfully integrated. The results were out few days back, accelerating our market presence all across the geography. Integrating synergies are being realized ahead of schedules, validating our disciplined M and A playbook Alongside M and A, our Greenfield and Brownfield projects are designed with an emphasis on long term competitiveness and roughly close to 40% of our capacity now falls under new generation assets that are optimized for capital efficiency, lower OPEX cost, increased use of renewable energy and improved logistics including rail infrastructure.
In this quarter of 26 we commissioned 57.7 megawatts of wind energy taking our total renewable power to 473 megawatts. And additionally our WHRS capacity sent us 228 megawatt. Together our green energy is contributing close to 28.1%. Underscoring our position as a sustainable leader in India. We are also laying a strong digital foundation for the future. Our end to end digitization of the value chain from query to learning is yielding measurable operational benefits and improving EBITDA delivery. Our Siemens Network Operating center is live which is live at our headquarter, growing in its scope, enabling predictive analysis, real time visibility and agile decision making.
So this is a transformative journey and I’m proud that Ambuja is at the forefront of making this traditional industry younger, smarter and more efficient. We continue to maintain a fortress balance sheet. As of quarter one financial year 26, our network stands at 66,500 crore up from 63,811 crore in March 25. We still are at debt free with AAA rating giving us lot of headroom to fuel growth and return value to the shareholders. To conclude, Ambuja is uniquely positioned as the interactions of capacity growth, margin expansion, digital evolution and ESG leadership. As the industry enters an exciting new phase, we are confident that our strategy and execution will drive superior stakeholder returns in the quarter and years ahead.
With that I now hand over back to Deepak.
Deepak Balwani — Head of Investor Relations
Yeah Nidhi, we can open the call for Q and A.
Questions and Answers:
operator
Thank you very much. We’ll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Rahul Gupta from Morgan Stanley. Please go ahead.
Rahul Gupta
Hi. Thank you for taking my question. My first question is if we look at on a sequential basis there is a sudden increase in power and fuel, logistics and other OPEX even adjusted for volumes. Can you please help us understand in detail what’s happening over here? Thank you. That’s my first question.
Vinod Bahety
So Rahul, I’m presuming you are referring to Consolidated Finances, right?
Rahul Gupta
Yes. Okay, just a sec.
Vinod Bahety
If you actually refer to Rahul and I’m not sure which line items you are referring to because there is a overall reduction in terms of the power and fuel and raw material on a Y and Y basis. So if you go to slide number 12 of the investor presentation, so I’m.
Rahul Gupta
Looking at slide 19 and I’m more concerned about quarter on quarter change. So any color on that will be very helpful.
Vinod Bahety
Just a second, let me just go through the slide 19 of the Investor deck.
Rahul Gupta
Yes, that’s right.
Vinod Bahety
Okay, let me just pull the particular slide around. So again if you refer to slide 19 and there is a reduction in so the only point which is the other expense is 12% otherwise there is reduction in all the other items. Rahul.
Rahul Gupta
Not really. If you look at power and fuel it has moved from 1263 to 1367.
Vinod Bahety
Okay, that you’re comparing Q1Q while I was referring to Y1Y in terms of Q1Q also Rahul, for example when it was 1266 for the last quarter and with for example when you have this acquired asset, especially when you have now Orient also there will be some disruption on the overall cost compared to say March. So in March for example you didn’t have Orient and now you have say Orient. Second is if you also notice. The. Fuel cost impact has come down from 1.74 to 1.57. Actually the second element of cost which is the power cost over there I have highlighted that we have a higher as of now consumption of the power units and some of these again acquired assets have that. But there is a good opportunity for us to reduce by at least 5, 5 units minimum in coming quarter in terms of the power consumption. So both this power and fuel basically will come back to the sequential numbers very soon. And in terms of the fuel for example we have demonstrated a sharp production by almost say 20 basis points this quarter compared to last quarter and prospectively also I’m sustaining myself at those levels.
So this is like one time when you have a quarter when you have an acquired asset otherwise you will have a quite sustainable numbers on this front coming through the other expenses where for example my overall branding and sales and promotion expenses we actually are investing into our marketing and brand expenses in our supply chain network and you will see and you have seen some uptick over there. Yeah and on top of it the Orient asset also for example when we have acquired it is also actually added to my overall other expenses. So this quarter you will have to look it with the color of Orient being acquired and consolidated as compared to the previous quarter.
But on a Y On Y basis you will see all of them are on a very healthy trend even with Orient acquisition.
Rahul Gupta
No, I understand. Thank you for the color that this is. This is, this is because of Orient acquisition. And that’s exactly why I want to understand this. What, what would be this number without Orient? Because see, or could not be that big in the overall console numbers perspective. Right. So any color from that perspective would be very helpful. And second, by when should we expect this number to normalize to pre Orient acquisition levels? Thank you. These are my questions.
Vinod Bahety
Yeah, no, I think coming this quarter itself you will see a sharp improvement on that. And in terms of my outline also when I said that now the assets have started, started generating giving us good results. For example, my power costing with the renewables push, this quarter has come down by 80 basis points per unit. Right? So this quarter itself will see a good level of improvement in terms of sequential quarter. So that is how, for example, when we have this acquisition and when we have this integration, it will take you couple of months here and there.
But if you look at the volume part and that is like very interesting and all of my, for example, therefore the required assets have done very well in terms of the volume part. So integration has gone very well in terms of the revenue. And therefore you have seen a 20% jump on the volume part. And so far as the costs are concerned, like this quarter itself, you will see a good level of stabilizing there.
Rahul Gupta
Got it. Just for the bookkeeping, what would be volumes out of Orient business this quarter?
Vinod Bahety
No, I would refrain doing that because we, for example, as we have highlighted overall 18.4 million tons because Orient and all these are part of the MSAs. And therefore per se, Orient doesn’t have its own say direct sales because we have migrated from Orient brand to now and acc. But happy to say that these assets, for example, are operating at a very healthy level at Clinker and Cement both. And therefore on an overall basis we have a good healthy utilization of the cement capacity.
Rahul Gupta
Great, thank you so much. Just one final question. On an adjusted basis, your volume grew by 20% year on year. Now when you say that industry grew by 4%, where would be Ambuja console compared to that? 4% for the industry.
Vinod Bahety
Is what we have said, 20% overall improvement.
Rahul Gupta
Yeah, but that’s unadjusted, right? I mean for fair comparison, when industry.
Vinod Bahety
Grew by 4%, then if, okay, okay, let us see. If I, if I. This is unadjusted here, right? So if I adjust and if I only consider Ambuja and ACC the earth’s well capacity, it comes to almost 13%.
Rahul Gupta
Got it. Thank you so much. This is very helpful.
Vinod Bahety
Thank you.
operator
Thank you. Ladies and gentlemen, please limit to two questions for participants and rejoin the queue for the follow up question. The next question is from the line of Atisha Rathi from JP Morgan. Please go ahead.
Atishy Rathi
Yeah, hi. Thank you for the opportunity. I just had one question. This is pertaining to slide 18 at the deck. So I notice you see here volume on the consolidated basis at 18.4 is 18.2 for the last quarter in the deck. But if I look at the last quarter’s deck the number was at 18.7 and the EBITDA on the EBITDA total EBITDA hasn’t changed. So I’m just trying to understand how do I, how should I reconcile the two numbers?
Vinod Bahety
Yeah, hi. Thanks. So basically what we have done because so far CLC which is like clinker plus cement both were considered but we are not in the business of selling clinker. We are more in the business of cement and therefore like all the other competitors we also now will move into reporting in terms of factor of cement and therefore for example what we have done is also for the Mars. 18.2 is a cement sale. The difference between cement, cement and clinker, that 0.5 primarily is actually for the CLC factor and therefore 18.4, when I’m saying is purely a cement cell.
There is no clinker factor here. That’s how the, the whole basically calculation is.
Atishy Rathi
Understood. Thank you so much.
Vinod Bahety
Thank you. And that is how all the other industry players, what I understand, they do it and that’s how we have also recalibrated and put it on basis of the cement volumes and therefore EBITDA and everything as a factor of cement.
Atishy Rathi
Understood. Thank you so much.
operator
Thank you. The next question is from the line of Harsh Mittal from MK Global. Please go ahead.
Harsh Mittal
Thank you for the opportunity. Good evening. Firstly congratulations to the manager for a. Great set of numbers. So my question was pertaining towards the earlier participants concerned on the volume front. So continuing with this statement, if I just exclude Orient and Segna cement volume in this quarter we are standing at around 1 1.5% of volume growth right away. Is it a fair set of assumptions, sir?
Vinod Bahety
No, no, no. Absolutely not. Absolutely not. In fact as I said, if I, if I, if I adjust for example the acquired assets, I am sitting on still a very good healthy volume growth of 13%. So what would be the volume for Penna cement this quarter?
Harsh Mittal
If you can just you can share.
Vinod Bahety
That number, for example, like as a, as a fact, for example, we are at 18.4 million tons for a capacity which has now gone up to 105 and you can safely assume that the average capacity would have been almost a 95. So therefore, on an overall capacity utilization, I am around 77 to 78%. Yeah. So please allow me to volume instead of going with. Because all of these are companies under the msa so it will be inappropriate to give you for individual unlisted company. It will be better to speak on a console volume and a console capacity.
I can give you this indication, this number that around 78% is the capacity utilization.
Harsh Mittal
So that was my question. Thank you. Thank you.
Vinod Bahety
Yeah, so this will enter you and now you can do your math actually. Yes.
operator
Thank you. The next question is from the line of Amit Murarka from Access Capital. Please go ahead.
Amit Murarka
Yeah, thanks for the opportunity. So the first question is on capacities. I see that the timelines are no longer indicated in the presentation as to what is the commissioning for each of those capacities which you were giving earlier. So like what is the updated timeline now, if you could shed some light on that.
Vinod Bahety
Okay. I mean, perhaps I think because we are actually hitting now. So out of say earlier used to indicate almost like 18 million turns out of which 5 has already been achieved. So 13 is also in fairly advanced stages of each passing month. I’m going to announce the commissioning. So I can tell you that this quarter you will see some of these capacities. And by for example December, most of my capacities will be there, including Salai Banwa, the Penna Jodhpur, the Bhattaparam and couple of more. And then by March, whatever we have indicated here is what for example, we are going to achieve.
So 118 million by fiscal year F, by 26 is there to be achieved?
Amit Murarka
Sure, sure, got it. And like it’s facing some delays is what I understand because I remember right, you had earlier indicated March 25 as commissioning. So like why is getting delayed? I mean frankly, the concern is more around because I want to understand is that the Chinese equipments is what these plants are based on. And we have been reading that Chinese engineers are not being allowed into the country. So is it something to do with that or is there any other issue?
Vinod Bahety
No, no per se, not. I mean like in fact we already have this, this particular company who has, who is the vendor which you are referring to already like a vendor to us for a couple of our other assets. So we don’t see any issue on that this March what you are indicating is something which is our management target. And so far as but the the outline timing is concerned we are well on that. I don’t see any per se any issues over there. So to rescue on any anxiety, no concerns on the vendor, no concerns on the execution and completion of course projects of this scale.
For example when you have a brownfield expansion a couple of months here and there because you are operating for you are actually executed in an established asset which is also not be delayed in any form and manner. These are like very nominal months, couple of months here and there. I don’t see any issue or any anxiety over there.
Amit Murarka
No thanks for clarifying. That’s very comforting. Also you could provide like the cash position at the end of June.
Vinod Bahety
So Amit we can pick up from where we left and I think March end was almost 10,250 odd crores if I remember. And from there for example when I look at the overall take cash flow we are sitting right now closer to 3000 odd crores. And this includes the overall acquisition of say Orient. Then also my capex of almost 2000 crores which has been for the June quarter then almost 600cr550 to be precise for the dividend and so and so forth. So overall basically right now we are holding 3000 odd days of cash and cash equivalent.
Amit Murarka
Yeah sure. And lastly what was the effective date of.
operator
Rejoin the queue for question.
Amit Murarka
Thank you. Thank you so much.
operator
Thank you. The next question is from the line of Naveen Rameshwar Sahadev from ICICI Securities. Please go ahead.
Navin Sahadeo
Yeah. Good evening. Good evening. Vinodje Rakeshji, thank you for the opportunity. Two questions and I think that is similar to what Amit was trying to ask. Is the effective date For Orient is 22 April to be merged or consolidated or will it be 18 June to understand the like you know, integration better.
Vinod Bahety
Yeah. Navin Swati is the 22nd April.
Navin Sahadeo
Understood sir. And, and my second question was on the overall like you know, cash outflow towards capacity creation. So as you mentioned current cash balance is more like 3000 crore. So just wanted to understand how much do we have to pay for Senda Because I believe there was some retention money and of course subject to the capacities which were to get commissioned. So to answer the question is how much money for Penna is likely to be paid. I’m assuming it will happen this year. And when will these Penna capacities especially the clinker in Nords will come on board.
Vinod Bahety
So Naveen Clinker should be coming to us in let us say Q2 itself by 2nd of September. And so far as then there are a couple of other assets like Krishnapatnam which will be there and small capex at Kandur so that they’re all actually going well so far as Panna assets are concerned. And when we have factored in the CAPEX program the balance small payments which are left to be paid those will be paid within the overall guide our contractual terms of the sba. Yes but in terms of the progress on the Jodhpur asset it is absolutely bang on time progressing well and personally also I’ve couple of times a beautiful asset which has come out actually and this is like technology.
Navin Sahadeo
Only one related just clarification. So of course you said Penna is balance payment is included. So is it Safe to assume 10,000 crore kind of capex for FY26 as a number.
Vinod Bahety
You can consider maybe couple of thousands. So you can actually consider ballpark 1000 here and there. So 10,000 is a good amount to assume. Yeah, I would have considered between say 9 to 10 but yeah 10 is.
Navin Sahadeo
Okay and that includes also of course so all in 9000 crore kind of an outflow for 26. Thank you sir, thank you so much.
operator
Thank you. The next question is from the line of Rajesh Ravi from HDFC Securities. Please go ahead.
Rajesh Ravi
Good evening and congrats on good set of numbers. Firstly could you share the volume numbers for the full year now adjusted for the clinker sales and second can you share for the two listed subsidiaries Orient and acc what would be the capex in these two companies individually and what are the capacity enhancements for Orient Particularly there were talks of a grinding unit and a clean cut expansion in Karnatak and a grinding unit in MP and similarly for acc any progress on the Wadi Cleaner or any other asset beyond what we have recently commissioned?
Vinod Bahety
Yeah, thanks Rajesh. To first start with your question was what is the overall. Your question was about the overall volume.
Rajesh Ravi
Console volume, XO flinker sales for full year.
Vinod Bahety
Yeah so as I for the full year while in terms of the capacity as I mentioned we are targeting to hit 118 million tons. Yeah. And what is my overall estimated volume that is like for example you can broadly consider a current trend of 75, 78% and that you like extrapolate that so far as. So far as the second question which is about the capex at Orient I think right now our priority is to improve the overall efficiency at orientation than immediate expansion and therefore this financial year it is more of achieving the desired cost numbers and some of the debottlenecking.
But definitely there’s an opportunity for us as the previous promoters are also we’re doing in terms of expansion at Chittapur and bit of I’d say Devapur. But that is like we will look at it in the next financial year. So far as MP is concerned again that’s for example we’ll work it on but not an immediate priority. The immediate priority for us right now is the 7, 8 sites which I mentioned to you and which are strategically well located and integrate very well in our overall plan of 140 million tonnes. Yeah. But more detailed plan for Orient in terms of the growth will will come out separately.
Is that. Is that good for you? Okay.
Rajesh Ravi
Yeah.
Vinod Bahety
Is concerned as you know Amita was the one which we did followed by acquisition of Asian. And now Salai Banwa right now is progressing very well. And in next few months you will see Salibanwa up and running. Then again for ACC I’ve been highlighting our focus has been in terms of improving its again cost efficiency, its green power WHRS apart from Salai Banwa. If you also know Sindri we have expanded when we announced in terms of expansion. So Sindri Salai Bhanwa Wadi line is also very much in the plan and that is in the. In the.
In the drawing boards and I have highlighted before the dismantling of the line one is already been commissioned. Therefore that is very much in the pipeline. But not for this financial year. It will be limited initial groundwork but it will come in the next financial year. So these are like the capex program for acc. But more importantly is on the efficiency factors. Because the bridge between the overall EBITDA for ACC versus other peers is what for example we will bridge it very fast and as you see that in last many quarters HSE has been catching up on that.
Rajesh Ravi
9 10,000 crore. How much of the capex one can work out in the standalone EC. Sorry to interrupt but I just completing this follow up. Just completing this follow up.
Vinod Bahety
Yeah, okay. Maybe I will just answer that. So that. So Rajesh, generally like you will factor of 75, 25 between parent company and so which is like Ambuja and HSE sometimes like 70, 30 or 75. 25 kind of thing.
Rajesh Ravi
Okay, great. I’ll come back in. Q Sir, thank you. All the best.
operator
Thank you. The next question is from the line of Ritesh Shah from Investec. Please go ahead.
Ritesh Shah
Hi. So thanks for the opportunity. Couple of questions. So first is on ACC there was a significant cost bump on a sequential basis for both raw MAT as well as other cost. How should one look at it and is it by any means tied to a few Clinton units that we have actually shut down in south. Is it because of higher inter regional trade, higher clinical cost, how should we treat it to that?
Vinod Bahety
Sometimes as you know that given the early set of monsoon which started in June, basically what we’ve also done is in terms of the scheduled maintenance phase and therefore like Wadi and all for example, which is accurate, we have actually done that. So therefore you will find a bump whenever you have scheduled maintenances. You will generally find a bump in the, in the particular quarter, but which will get. But for on a overall year basis you will see it gets neutralized basically. So the benefits of that will come in the subsequent quarters. So that was like say one part and again like in terms of the other expenses, I actually mentioned earlier that some of the especially for ACC in terms of the settlement cost, the VRs, the employees separation and also in terms of the brand promotion and sales promotion activities which will get intensive this year and lots of, lots of investment is being done on the brand equity, on the channel vibrancy.
I also put in my initial remarks and you’re already seeing the results of that. In terms of the price improvement, in terms of the overall say volume improvement, this will continue. So the delta positive impact is coming on the revenue part while some of the investments will happen in terms of this brand and sales promotion. Yeah, so those are basically the trend.
Ritesh Shah
My question is basically we are taken out Wadi 1, Barger and Chaibasa. So how are we substituting that clinker for the gun for acc?
Vinod Bahety
Yeah, so therefore, therefore like if you see in the MSA there’s also good movement of clinker between Ambuja and acc. So the high cost clinker which goes off of acc almost like if I have to highlight between ACC and Ambuja this time clinker movement has been almost like 0.47 million metric tons. So it gets applied for example so Bargad and Chai Basa. So I have say Tenna sets. Now I have got say Orient also. So sometimes when Wadi is down and I have said Chitta code for Orient which is available to supply so and so forth.
So therefore the, the logistics wise, whichever is best suitable is what being used in terms of the clinker movement and therefore supplies of cement. So don’t worry that balance, if you look at overall balance of the cement versus clinker. It is well balanced. Second question is 64 million tons of clinker capacity. And I have almost 105 million tons of cement capacity. So you can apply the factor and then it is well balanced.
Ritesh Shah
Second question.
Vinod Bahety
Yeah.
Ritesh Shah
Hi sir. Am I audible?
Vinod Bahety
Yes, please.
Ritesh Shah
Yeah. During the Marwa day you had indicated that we are looking to simplify our marketing structure. We’ll have like only three layers. Have you already progressed on that? What should we make out of that particular outcome? That’s one and other quick one is one of our peers has announced commercialization of calcite clay. You did elaborate quite a lot on esg. Is this particular variable up for us on priority? If not, why so. Thank you.
Vinod Bahety
No. So Ritesh, as you know, like calcine clay or otherwise, if you have fly edge and ppc, I think I would say that I am sitting on a huge opportunity of fly as and therefore those who don’t have the opportunities, they will look around for different types of products. But we have a natural advantage and as a good synergy. So therefore I would right now focus on. And there is no better substitute to fly as actually because the whole chemical process of fly as it blends with cement. The cement quality and the cement strength is far, far superior and which is well demonstrated in many labs.
Also point number one, point number two. And therefore the compliance and all the specific applications and all for example, different to what normal assignment can be. Point number two, what was your second question.
Ritesh Shah
On the marketing side?
Vinod Bahety
That is more internal. This I think not right to discuss on this forum. But yes, we are simplifying and we as I said, we are reimagining the whole structure, the whole ox structure, the whole plant structure. And you will see prospectively a positive impact and results out of it. But exactly. That’s not the point to discuss on this forum. It is offline. We can connect on that.
Rajesh Ravi
Sir, can I just squeeze in one? In your initial remarks you indicated.
operator
Come back for the follow up question, please.
Ritesh Shah
Sure, sure, sure. Thank you.
operator
Thank you. Ladies and gentlemen, Please limit to 1 questions for participants and rejoin the queue for the follow up question. The next question is from the line of Rashi Chopra from Citigroup. Please go ahead.
Raashi Chopra
Thank you. Just had a question on realizations post the quarter. How have the realization been across different geographies?
Vinod Bahety
Rashi, thank you. I’m very upbeat about realization. Although you will definitely through your channels you will get a different impression. But especially when we are focusing on solutions oriented as a cement and therefore, for example, at least we have the strong brand equity and we are actually able to get the right price and we have also upped the price of our premium cement. While you would also hear this positive from our side. So I think realization is better off only and it will remain better off for the leaders and those who are deficient in terms of providing high quality premium cement and addressing the solutions.
And with good investment on brand equity I think it is also seeing a good churn and volume movement. So that is like my submission overall. But you will see different views from different corners of the industry. But I would refrain because sometimes we are now following and bringing a good discipline in terms of adhering to the whole channel network and in terms of pricing and all. So that will continue as a trend from our side.
Raashi Chopra
So just to understand this, are prices today better than what you exited in June?
Vinod Bahety
I won’t say because that is like again I’m seeing June, you have seen a healthy improvement in prices. And I can only say that our focus in terms of continuously addressing to the requirements of the customers is only going to help us and differentiate us better as compared to the industry in terms of prices. Yeah, but I am, I remain positive on demand and I remain positive on this factor also.
Raashi Chopra
And just on the cash that you said 3000 crores, this is on a consolidated basis including Orient, everything.
Vinod Bahety
Yeah. Now because this call generally we always speak about Consol because companies have their own MSAs and different companies are investing and they share the assets and also mhs they always make sense to discuss.
Raashi Chopra
Concern on the cash balance of 3000 crores possible to split it up between Accuja and.
Vinod Bahety
I would say that as of now I don’t have direct information but yes, it is broadly between Ambuja and ACC. You can say 60, 40 or 50, 50. So that the trend Sanghi and Sanghi and Orient and Penna for example, they would not have balanced the working capital because the cash flows have been used to make them debt free also Rashi. Therefore the major cash is lying with Ambuja and then acc. So that is like for example a broad split and yeah, so Sangee, Penna and Orient would not be sitting on that otherwise bare minimum working capital.
operator
Thank you. Thank you. The next question is from the line of Jashandeep Chaddha from Nomura. Please go ahead.
Jashandeep Singh Chadha
Yeah, thanks for the opportunity and congratulations on a good set of numbers. Sir. So my first question is regarding the cost saving target, you know which we gave last year or maybe last last year of 530rupees. But and I understand There are some, you know, consolidation cost and you know, higher fixed cost because of the assets that you.
Vinod Bahety
We are not able to hear you.
Jashandeep Singh Chadha
Sir. The current. The current participant has been disconnected from the line. Should we move to the next one?
Vinod Bahety
Yes Madhya, please move to the next one.
operator
The next question is from the line of Jyoti Gupta from Nirmalbang. Please go ahead.
Jyoti Gupta
Good evening, sir. Good set of numbers. I just wanted to understand what has been the contribution of south based plants in Konsul. And since we are expecting that the prices in the south will further strengthen, will that have a significant impact on our town? And the second part is that while we have taken an estimate of a better improvement of almost like 530 till FY27, I think this year alone from cost we should be somewhere. I mean price increases commensurate to the overall EBITDA pattern with cost.
So what is your sense that where should we end this year in terms of overall console? Ambuja is a better return.
Vinod Bahety
Thank you. Jyoti. Jyoti. As you know like south is now we have a good large share as part of my overall capacity, almost 26% wherein like Wild west is 23% which like is disclosed on slide number 15 of my investor day. Now definitely south has been a good contributor and like for the June quarter. But south, you know that how it works because of the excess capacity. Therefore you cannot predict in south generally. But I’m bullish with respect to demand and therefore I’m also positive with respect to prices. I won’t comment about the overall price expectations or the EBITDA expectations.
But I can only say that the EBITDA which we have highlighted and given and reported is what the EBITDA we are targeting to sustain and improve from here. And therefore like both the demand and prices, I am positive giving specific numbers will not be possible and will also not be appropriate.
operator
Thanks sir. Thank you. The next question is from the line of Jashandeep Chaddha from Nomura. Please go ahead.
Jashandeep Singh Chadha
Yeah. Hi sir. Am I audible now? Yeah. Yes. Hi. So sorry for that and congratulations on a good set of numbers. So firstly I want to ask about the cost saving. The target that we gave 530 rupees per ton. And I understand you know, in the last few quarters there have been some consolidation costs because of the assets we have acquired. But if you have want to do an apple to Apple comparison from FY 24th base, how much of the cost benefits would have, you know, come in based on the initiatives that you’ve taken and under what major heads will those be? If you can give you know, insight on that, that would be great.
Yeah.
Vinod Bahety
So Josam Deep so you’re right, the journey of 530 continues and if I have to give a broad range we would have hit all almost 35 to 40% of that journey by now. So let us say closer to 200 rupees a ton basically and 175 to 200 yen now primarily let us say power is one of the factors which with the green power. Second is now you will see on the fuel side for example and third is the logistics. These are like my primary and of course my raw material cost which we have sustained with advantage in terms of the long term agreement on fly as if we have entered into on a comparative bid basis with the group company and all.
So I think raw material we have sustained and from here onwards I am going to see improvement on raw material, continued improvement on the power and the efficiency of the power also and also the heat consumption and heat consumption while we will sustain and improve on the coal cost. These are like major factors and apart from that logistics, with every improvement and increase in my grinding capacity and location therefore my overall lead distance comes down and we’re also working on a few initiatives on EV and all which will actually bring down the overall ptpk. So these are like broad numbers and therefore gives me much more high visibility to achieve even for the acquired assets they will actually complement and help us to to move on our 530 rupees reduction.
So I’m quite bullish about that. And this quarter for example which we had to fix some of the issues on the revenue part which we have done successfully and which we will see a further improvement on that part with a more vibrant channel network and all. And cost anyways remains our forte and focus. So both will complement now to each other and hence my overall comfort to sustain and improve the EBITDA from here further is very high.
Jashandeep Singh Chadha
Understood Sir. Just an extension to this before I ask my second question on a console basis does your 530 target still, you know is there? Because why I ask is because when you give this target Orient was not in picture. Now Orient comes in and I believe there will be some capex involved to bring it to Ambuja’s cost structure. Just want to understand on a consolidated basis, you know, increased capacity Is it till 5:30 over FY 24 days or the number has changed, the target has changed?
Vinod Bahety
No, it continues so even like for example when we had given the Numbers we had envisaged that there will be some acquisitions and all therefore we will adhere to that number.
Jashandeep Singh Chadha
Understood. My second question is largely. I think I heard you but I.
operator
Request you to come back for the follow up question. Thank you. The next question is from the line of Patanjali Srinivasan from Sundaram Mutual fund. Please go ahead.
Pathanjali Srinivasan
Thank you for the opportunity. I have couple of doubts. I don’t know if I may have mistake but are other expenses. On our presentation it mentioned 678 but there’s a footnote that says excluding new assets and one time gain. Could you quantify or mention whether these are like startup costs or something because of integration of the new assets or. What is the difference? Will it continue or is it a one time expense?
Vinod Bahety
So you’re referring to the other expenses which is 678 versus 699 of March and 689 of June. Is that the numbers you are referring to?
Pathanjali Srinivasan
Yeah, because if I take it on a reported cost basis it is 788. But in the presentation it’s mentioned as 678. So I think there’s a delta of.
Vinod Bahety
About 110 rupees which is the one time gain in which was there in the previous year. So we have actually put it align with aligned with the comparison and therefore comparison on Y and Y which is what we have done. And if you see the footnote also which is is there so it excludes the newest and it also excludes the one time gain of the previous year.
Pathanjali Srinivasan
Okay, so it will not be recurring. Would that be the right understanding for this?
Vinod Bahety
That gain was not recurring. Therefore it has been.
Pathanjali Srinivasan
It has cost the new asset cost.
Vinod Bahety
That will not be recurring, that will not be recurring. And therefore you will see now considerable improvement on this other expense.
Pathanjali Srinivasan
Okay sir, and just one last question sir. Like between ACC and Ambuja, why do we see such a big difference in profitability? Like given that this quarter south prices went up. ACC has better region presence in south and east. But ACC still reported very weak numbers compared to Ambuja.
Vinod Bahety
Not so Patanjali. Thank you. But not very weak. For example let us say yeah, ACC has its own and from beginning if you know A the advantage Ambuja has is with respect to the captive coal mine while ACC is all third party purchase. So that is like so because fuel becomes an important factor then in terms of the power cost also because of again the vintage and legacy of acc. But therefore the power cost also when I look at it broadly in case of HSE, it is almost like 6 rupees 10 paisa per unit. Compared to when I look at Ambuja, it is say 5 rupees 30 paisa.
On overall basis it becomes a 5 rupees 90 paisa. Then some of the efficiency investment which are in process. But Ambuja has a higher WHRS factor almost while in case of ACC the Whrs factor is 14% 1, 4 now. So there is a. There is a reason. Therefore I think for acc, our primary efforts are to work on the investment and the efficiencies gain on the cost. And that will help us to bridge this gap of whatever 300, 400 rupees a ton and come to four digits sooner for ACC as well. Of course the brand equity, the brand pool is now started giving us very good results and more so the HTC pool blockbuster product in the industry in terms of the premium and therefore more and more focus on that will also help us to further improve the top line and the realization which has happened in fact this quarter also.
But this certain which is like a time bridge. So investments are being done, they are in the plan. And therefore this journey of cost improvement when we trade it, it has actually a significant improvement of cost journey for acc.
Pathanjali Srinivasan
Sir, I see a lot of spend being done for ACC in terms of marketing.
operator
Sorry to interrupt, but I request you to come back for the. Ma’, am.
Pathanjali Srinivasan
It’s a continuation of the previous question. Ma’, am, so can I continue? Yes, sir. So you see a lot of brand spend sir, that is being done for acc. But the pricing gap between ACC and Ambuja is still pretty elevated. So are we positioning the two brands slightly differently in the market or is it. Is there any other factor to it that I’m missing out on each of them?
Vinod Bahety
Both the brands of this strong brand equity and both the strength of the brand equity is leveraged very prominently now. So there is no per se promoting differently but using their own advantages. So in many pockets ACC has a better price compared to Ambuja for the brand equity. And in many pockets Ambuja has because they have the natural strength. For example, east and south is where accurate has been very dominant from past and north and west is where Ambuja has been very dominant from past. And that continues. In fact now with the synergy the blend is actually helping us on a overall basis.
So please look at on an overall basis. And of course SEC with its brand equity strength, it is getting the prices benefit. Therefore my overall console and also standalone sec, you will see A good improvement in the price for back.
Pathanjali Srinivasan
Sure. Thank you so much.
operator
Thank you. The next question is from the line of Sumangal Nivatia from Kotak Securities. Please go ahead.
Sumangal Nevatia
Yeah, thank you, sir. For a chance, most of the questions answered. So just one or two left. 1. On the next phase of expansion, which is 21 million tons, what is our preparedness? And I mean, if you can give some color as per will it be largely greenfield now within the brownfield phase is in the first phase. And also what are the preferred locations?
Vinod Bahety
So Sumangal, good question. Again the 21 million which will actually from FY 2728. Basically lots of groundwork has been so groundwork in terms of land, in terms of the Overall approvals of CTOs environmentals, public hearings, for example. Lots of this groundwork has been done and therefore it will not take more time when we actually start the project execution and therefore preparatory work and pre operating expenses and all. For example, in some of the sites have already started to happen including appointment of the technical consultants and owners, engineers and so on and so forth. And importantly, in terms of our negotiations with the vendors as well, which is already at a very, very advanced level.
And you will hear positive developments on that front also. So that 20 million tons is also well on track and therefore very confident to achieve 140 by end of March 28th.
Sumangal Nevatia
Some color on which regions will be the priority there any mix in the geographical mix are we looking at?
Vinod Bahety
I think primarily I think we are like Pan India. But if you. If you be more specific than north, you will see a good capacity in center also you will see couple of assets. Then each already we have commissioned. Therefore, for example, each I have already seen those additions a couple of them in West. So you will see actually so that that will balance it out. Because right now the center we are at say on a overall basis the 8% of my community capacities. We will see more of this balancing happening across the. Across these five regions of the country.
So it is not first a bias towards any particular belt.
Sumangal Nevatia
Understood? Understood. For the GPA bid it would be a strategy in case we win for the non core assets.
Vinod Bahety
Sorry, I could not follow.
Sumangal Nevatia
We. We are keen to acquire JPI through the ncaa. So what would be a strategy for the non core assets which come comes along with the cement assets there.
Vinod Bahety
So some of basically as you know, Adani Enterprises limited As a company has actually applied for that and therefore would not be fair from my side to commit and hence cement and non cement as a complete pack. It’s a LBG is actually have applied for it. So I would refer anything further on that.
Sumangal Nevatia
Okay. Thank you sir for the clarification and all the best.
Vinod Bahety
Thank you.
operator
Thank you. The next question is from the line of Kunal Shah from Dam Capital. Please go ahead.
Kunal Shah
Yeah. Hi sir, just one question from my end. So just wanted to understand how is. The brand integration process progressing in south especially from Pina’s plants. Like any positive or negative surprise there. And specifically how is Ambuja’s brand positioning in the trade channel in south?
Vinod Bahety
Very positive Suman, very positive. In fact why Penna? In fact now Orient also completely brand penetration has happened and migrated to ambush and acc. So both for example Penna and Orient have done very very well. Dealers have received it very very well. All the dealers have also got onboarded into Ambuja and ACC platforms. So in terms of my overall volume improvement for example and when you see and you can obviously you can do an assessment because when I said when I do the adjustment 13% is there and without adjustment almost say 20. So this 7, 8% which has come from Orient also Orient and Penna is nothing but coming from this integration and penetration of this brand of Ambujan sec.
And they have also helped us to improve with a better price realization. So I’m very happy with this transition.
Kunal Shah
Just clarifying this one thing like geographies of north and west where Ambuja is specifically A or A plus. Is it the same positioning in south also where you know Ambuja is not present like your AP Telangana Tamil Nadu. So just wanted that with clarity.
Vinod Bahety
No. So yeah. I think from a policy perspective both Ambuja and ACC remain as a category brands pan India including South.
Kunal Shah
Understood. This is very helpful sir. Thanks a lot.
operator
Thank you. Ladies and gentlemen, we’ll take this as the last question for today. I would now like to hand the conference over to Mr. Deepak Balwani. Over to you.
Deepak Balwani
Yeah. Thank you. Yeah. Thank you. I tell that most of the questions have been addressed. Should you wish to discuss any outstanding query we are available for a separate conversation from 5:20 to 5:45pm today. You have my contact number. Please free to call me.
Vinod Bahety
Thank you. Thank you Nidhi. Thank you everyone. On behalf of self and Rakesh, thank you again.
Rakesh Tiwary
Thank you.
operator
Thank you very much on behalf of Prabhu Das Leeladar Private limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. It.