Synopsis: A leading cement manufacturer is driving growth through capacity expansion, green power adoption, and operational efficiency. With rising profits, strong infrastructure presence, and ambitious sustainability goals, it remains well-positioned for long-term growth, supporting a potential 26 percent upside as projected by HDFC Securities.
India’s cement and cement products sector is riding strong infrastructure and housing demand, with production up 6.3 percent to about 453 MT in FY25 and volumes projected to reach 480–485 MT in FY26 at 6–7 percent growth. Installed capacity stands near 690–700 MT, while prices firmed around Rs 360/bag in May 2025, aiding margins amid stable fuel costs.
With a market capitalization of Rs 34,188.55 crore, the shares of ACC Ltd were trading at Rs 1,820.60 per share, decreasing around 0.79 percent as compared to the previous closing price of Rs 1,835.05 apiece.
HDFC Securities, one of the well-known brokerages in India, gave a ‘Buy’ call on the cement stock with a target price of Rs 2,330 apiece, indicating a potential upside of 28 percent from Friday’s price of Rs 1,820.60 per share.
According to brokerage, ACC continues its expansion drive with new grinding units of 1.6 mn MT at Sindri and upcoming 2.4 mn MT and 1 mn MT units in UP and Maharashtra. Additionally, a 5.6 mn MT debottlenecking plan aims to boost capacity to 49 mn MT by FY28.
The company’s sustainability push is evident as green power use rose to 30 percent in Q2FY26, driven by WHRS and renewable energy expansion. Reflecting its strong Q2 performance, EBITDA estimates were raised by 15 percent for FY26 and 9 percent for FY27.
Financial Highlights & outlook
Recently, the company reported an impressive Q2FY26 performance with revenue rising 28 percent year-on-year to Rs 5,932 crore, reflecting strong business momentum. Net profit surged 459 percent to Rs 1,119 crore, driven by higher operational efficiency, robust demand, and improved margins, signaling solid growth and execution strength across key business segments.
The company has a strong nationwide presence across 31 states and 665+ districts with 24 integrated units, 22 grinding units, and 116 ready-mix plants. With 107 MTPA cement capacity, expected to reach 118 MTPA by FY26, it maintains a vast distribution network of over 1.2 lakh channel partners, ensuring robust market reach and growth.
Adani Group raised its overall FY28 capacity target to 155 MTPA, 15 MTPA higher than earlier plans, through low-cost debottlenecking. Ongoing projects include solar power expansion and logistics upgrades. Strategic initiatives like AI-driven CINOC and expanded sea logistics aim to boost efficiency and operational excellence.
The company aims to raise EBITDA to Rs 1,500 per tonne by FY28, supported by operational efficiencies and Adani Group synergies. Green power share is projected to increase to 60 percent, driven by expanding waste heat recovery to 376 MW and renewable power to 1,122 MW, reinforcing sustainability and cost leadership goals.
ACC Limited is one of India’s leading cement and building materials companies, known for its innovation, sustainability, and quality. A part of the Adani Group, ACC plays a key role in India’s infrastructure growth through advanced manufacturing, green initiatives, and a strong nationwide presence across residential, commercial, and industrial construction segments.
Written by Abhishek Singh
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