ACC Q2 FY27 Results Analysis: PAT Plunges 92%, EBITDA Margin Halves

ACC's Q2 FY27 numbers came in soft, with revenue of Rs. 5,666.00 Cr (-5.08% YoY) and PAT growth of -91.69% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

ACC delivered a weak quarter with revenue down 5.08% YoY, EBITDA margin compressed to 7.08% (from 14.17% YoY), and reported PAT down 91.69% to Rs.93 crore, with the cement segment EBIT margin at just 1.59%. RMC was the lone bright spot with 26.43% revenue growth and margin expansion to 8.54%. Key watch items are the Rs.1,148 crore CCI penalty (Supreme Court hearing 28-Oct-2026), the Ambuja amalgamation NCLT hearing on 19-Nov-2026, and power & fuel cost pressure.

Key Investment Insights

Key Positives

• Ready Mix Concrete revenue grew 26.43% YoY to Rs.574 crore with segment result up 53.13% YoY and margin expanding to 8.54% from 7.05%
• H1 operating cash flow of Rs.4,957 crore vs Rs.(2,273) crore in the year-ago half; FCF of Rs.4,257 crore after Rs.700 crore capex
• Trade receivables fell to Rs.2,530 crore from Rs.3,843 crore at March 2026, releasing Rs.1,305 crore of working capital
• Zero borrowings on the balance sheet; net worth rose 0.61% to Rs.20,680 crore
• Amalgamation with Ambuja Cements approved by shareholders on 29-Sep-2026 with NCLT hearing fixed 19-Nov-2026

Risk Factors

• EBITDA margin compressed to 7.08% from 14.17% YoY and 7.89% QoQ; cement segment EBIT margin fell to 1.59% from 9.68%
• Reported PAT fell 91.69% YoY to Rs.93 crore; normalized PAT of Rs.146.25 crore is down 50.30% YoY
• Power and fuel costs rose 9.04% QoQ while revenue declined 2.14% QoQ
• Inventory build of Rs.(180) crore, a ~Rs.145 crore sequential drag vs Q1's Rs.(35) crore
• Rs.1,148 crore CCI penalty pending before the Supreme Court with no provision recognized; auditors emphasized this litigation uncertainty
• Rs.4,403 crore of H1 operating cash surplus lent to holding company Ambuja Cements at 8% p.a. rather than retained