ACC's Q1 Profit Slump Highlights Cement Sector Pressures
ACC's first-quarter profit fell sharply as revenue declined and net profit margins contracted, continuing a challenging trend for the cement maker.
ACC reported a sharp 60.8% drop in year-on-year profit for Q1 FY27, with revenue also declining. Net profit margins have compressed significantly from last year.
ACC's first-quarter results for FY27 reflect a period of significant pressure, with both revenue and profit declining sharply from the previous year. The cement producer's net profit margin has contracted to a fraction of its recent levels, highlighting the challenging operating environment.
The company's revenue for the quarter ended June 2026 stood at ₹5,808 crore, down 8.2% from the same period last year and 18.7% sequentially from the March quarter. Profit after tax fell even more steeply, dropping 60.8% year-on-year to ₹147 crore. This sharper decline in profit relative to sales pushed the net profit margin down to 2.5%, a contraction of 340 basis points from the 5.9% margin in Q1 FY26.
A look at the last five quarters shows the extent of the profitability squeeze.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 5,808.0YoY -8.2% | 7,146.2 | 6,328.0 |
| Profit (₹ Cr) | 147.0YoY -61% | 238.3 | 375.0 |
| Net Profit Margin (%) | 2.5YoY -58% | 3.3 | 5.9 |
While the trailing twelve-month (TTM) net profit margin remains healthier at 7.5%, the latest quarter's figure is well below that average. The stock has mirrored these earnings challenges, declining 22.6% over the past year. At a P/E of 11.0, ACC trades at a significant discount to the broader cement industry average of 34.1. The immediate focus for the company will be on stabilizing its profitability in the face of ongoing market headwinds.
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· ACC
(BSE)
ISIN: INE012A01025
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