ACC Ltd, owned by the Adani Group, on Wednesday reported a 20% year-on-year (YoY) decline in consolidated net profit for the fourth quarter ended March 31, 2025. The company’s profit dropped to ₹751 crore, compared to ₹943 crore in the same quarter last year, largely due to a sharp rise in expenses despite strong sales growth.
Revenue rises, but cost pressure hits profit
ACC’s consolidated revenue increased 13% YoY to ₹5,992 crore in Q4 FY25, up from ₹5,317 crore in Q4 FY24. The firm also reported a 14% YoY growth in sales volumes, indicating robust demand in the cement sector.
However, total expenses rose 12.7%, driven primarily by higher raw material and freight costs. This offset the benefit of increased volumes and price realizations.
Dividend declared
The company declared a dividend of ₹7.5 per share for FY25. The record date has been set as June 13, and the dividend is expected to be paid before July 1, 2025.
Management commentary
Vinod Bahety, Whole Time Director & CEO, said,
“As we conclude this financial year, ACC stands stronger, more agile and future-ready. Our capacity expansion initiatives, including new grinding units and modernization, align with India’s growing infrastructure and cement demand.”
Brokerage view: Nomura remains cautious
Nomura has maintained a ‘Reduce’ rating on ACC stock with a target price of ₹1,920, citing cost pressures and below-par profitability.
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Cement volumes rose 14% YoY to 11.9 million tonnes, beating expectations.
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However, EBITDA per tonne stood at ₹673, which was 4% below estimates despite strong volume and realization gains.
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