ACC Limited (NSE: ACC) shares fell on Friday after the Adani-owned cement maker reported lower-than-expected earnings for the third quarter of fiscal 2026. The results come as the company prepares for a large-scale consolidation into a unified “One Cement Platform”.
Stock Performance and Market Context
The stock was trading at approximately ₹2,485.00, down 2.4% during intraday trade on the National Stock Exchange following the earnings release. The shares have fluctuated within a 52-week range of ₹2,150 to ₹2,850, reflecting broader volatility in the infrastructure sector. Despite the daily dip, the company maintains a “Debt Free” status and holds top-tier AAA (Stable) credit ratings from CRISIL and CARE.
Quarterly Financial Highlights
For the quarter ended Dec. 31, 2025, consolidated performance for the Adani Cement business (incorporating Ambuja and ACC) showed significant volume expansion but margin compression:
Sales Volume: Cement volumes rose 17% year-over-year to 18.9 million tonnes (MnT).
Revenue: Quarterly revenue from operations reached ₹10,277 crore, a 9% increase from ₹9,411 crore in the prior-year period.
EBITDA: Normalized EBITDA stood at ₹1,353 crore, a decline of 21% compared to the year-ago quarter, which included one-time income.
Margins: EBITDA margin contracted to 13.2% from 18.2% year-over-year.
Realizations: EBITDA per tonne (PMT) was reported at ₹718, down from ₹1,059 on a normalized basis.
Annual and Strategic Outlook
For the first nine months of FY26, the consolidated entity reported revenue of ₹29,740 crore, up 17% year-over-year. The company remains on track to reach a total cement capacity of 155 MnT by March 2028, up from its current 109 MnT.
Merger and Consolidation Update
The Board approved the amalgamation of ACC Limited and Orient Cement Limited with Ambuja Cements on Dec. 22, 2025. The companies have filed merger schemes with stock exchanges and are currently awaiting a No-Objection Certificate (NOC) from SEBI. Completion of the transaction is anticipated during FY27.
Analyst and Sector Sentiment
No immediate analyst rating downgrades were issued following the call, though several firms noted that the EBITDA PMT remains below the long-term target of ₹1,500. Management maintains that cost leadership initiatives and green power adoption—now at 38%—will drive profitability toward the 2028 target.