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Informist, Wednesday, Jul. 22, 2026

 

By Ashutosh Pati

 

MUMBAI – ACC Ltd. is bracing for a sharp hit to its bottom line for the June quarter mainly due to higher input costs stemming from the war in West Asia, according to analysts. Its top line for the quarter is expected to rise slightly year-on-year.

 

The company's standalone net profit is expected to plunge 22% on year to INR 3.02 billion for the June quarter, as per the average of estimates from eight brokerages. The highest estimate for net profit is INR 3.41 billion from Nuvama Wealth Management Ltd. and the lowest is INR 2.53 billion from HDFC Securities Ltd.

 

ACC's revenues are estimated to rise around 7% on year to INR 64.82 billion for the reporting quarter, as per the average of estimates. The highest estimate for the company's revenues is INR 73 billion from Systematix Shares and Stocks (India) Ltd. and the lowest is INR 59.91 billion from JM Financial Institutional Securities Pvt. Ltd. Sequentially, ACC's bottom line is seen rising over 19% and the top line is seen falling over 8%.

 

"We expect the recent surge and then a cool-off in PVC (polyvinyl chloride) resin prices globally to result in cement industry's packaging cost peaking by Q1FY27," HDFC Securities said. The brokerage said the turmoil in West Asia has driven up prices of coal and pet coke in the June quarter and these are likely to peak in the September quarter. "Logistics costs for the industry will go up as well in Q1 (Apr-Jun), factoring in the recent increase in diesel prices," the brokerage said.

 

High input costs remain a key concern for the company, brokerages said. Nomura Equity Research sees ACC's freight costs rising 11% on year for the June quarter while its raw material and power and fuel costs are expected to surge 24% on year. The brokerage projects a 9% on-year increase in fixed costs per tonne and a 19% increase in operating costs per tonne for ACC in the quarter.

 

Most brokerages have forecast a 5% on-year drop in volumes for the company in the June quarter. "Volumes were subdued in the key market of the company while realisation inched up in the beginning of the quarter but eventually moderated towards the end of the quarter," Nuvama said. The company's cement volumes are seen at 10.1-10.9 million tonnes for the quarter. However, Systematic expects a 5% on-year rise in volumes to 12.1 million tonnes and HDFC projects a more moderate rise of 2% to 11.7 million tonnes.

 

ACC is expected to report earnings before interest, tax, depreciation, and amortisation of INR 6.47 billion for the June quarter, down nearly 17% on year but up over 3% sequentially, according to the average of eight estimates. The highest estimate for the company's EBITDA is INR 7.17 billion from Prabhudas Lilladher Pvt. Ltd. and the lowest INR 5.73 billion from Nomura.

 

Sequential improvement in ACC's EBITDA is mainly driven by better realisations. Nomura and Prabhudas Lilladher expect a 2% sequential rise in the company's realisations for the quarter. ACC's EBITDA per tonne for the quarter is expected to fall 15% on year but rise over 22% sequentially to INR 576, as per Motilal Oswal Financial Services Ltd. Nomura sees it at INR 569 per tonne, broadly flat sequentially.

 

The company will detail its June quarter earnings Friday. On Wednesday, shares of ACC closed 2.1% lower at INR 1,359 on the National Stock Exchange. Shares of the company have fallen nearly 3% since the company announced its March quarter results.

 

Of the 12 brokerage reports on the company available with Informist, eight have a "buy" or equivalent recommendation on the stock with an average target price of INR 2,053. This is 49% higher than the current market price. Two brokerages have a "hold" recommendation on the stock while another two have a "sell" recommendation.

 

Following are the June quarter earnings estimates for ACC from eight brokerages, in descending order by the estimate of net profit, in INR billion:

 

Brokerage	Net sales	Net profit	EBITDA
Nuvama Wealth Management Ltd.	66.79	3.41	7.11
Prabhudas Lilladher Pvt Ltd.	62.07	3.33	7.17
Nomura Equity Research	65.62	3.25	5.73
Elara Securities (India) Pvt. Ltd.	66.07	3.09	6.71
Systematix Shares and Stocks (India) Ltd.	73.00	2.90	6.10
JM Financial Institutional Securities Pvt. Ltd	59.91	2.82	6.26
Motilal Oswal Financial Services Ltd.	60.30	2.80	6.30
HDFC Securities Ltd.	64.76	2.53	6.36
Average	64.82	3.02	6.47

End

 

Edited by Shubhayan Bhattacharya

 

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