ACC Q2 FY27 Results (NSE: ACC)
Signal: Revenue declined
The read
The operating reset remains unfinished: revenue fell 4.7% YoY to ₹5,612 crore and EBITDA margin compressed 887bps to 8.8%, following margin contraction in Q3FY26 and Q4FY26; PAT fell 90.9% to ₹101 crore, further weakened by ₹71 crore of VSS termination benefits. H1 operating cash flow of ₹4,905 crore versus ₹(2,232) crore last year is a counterpoint, but the quarter provides no evidence yet of a durable margin inflection.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,612 Cr | -4.7% | -2.4% |
| EBIT | ₹240 Cr | -69.5% | |
| Net profit | ₹101 Cr | -90.9% | |
| EPS | ₹5.38 | -90.9% | |
| EBIT margin | 8.8% |
P&L walk
Standalone revenue declined 4.7% YoY to ₹5,612 crore, gross margin compressed 354bps to 55.0%, EBITDA margin fell 887bps to 8.8%, and PAT declined 90.9% to ₹101 crore; the quarter also included ₹71 crore of VSS termination benefits.
Key positives
- Operating cash flow was ₹4,905 crore in H1FY27 versus ₹(2,232) crore in H1FY26, materially exceeding H1 PAT of ₹249 crore.
- Property, plant and equipment increased to ₹9,071 crore from ₹8,519 crore while depreciation remained broadly stable at ₹256 crore versus ₹257 crore YoY, indicating no depreciation-to-asset-base warning.
- Gross margin recovered 94bps sequentially to 55.0%, although it remained 354bps below the year-ago level.
Key concerns
- EBITDA margin fell 887bps YoY to 8.8%, extending the recent margin contraction after 8% in Q1FY27, 9% in Q4FY26 and 11% in Q3FY26.
- PAT declined 90.9% YoY to ₹101 crore as revenue fell 4.7% and profit before exceptional items and tax fell 73.6% to ₹200 crore.
- Gross margin compressed 354bps YoY to 55.0%; raw material cost declined to 15.7% of revenue from 17.0%, but the filing does not disclose the reason for the gross-margin deterioration.
- Finance costs rose 37.9% YoY to ₹40 crore, while loans increased to ₹4,409 crore from ₹6 crore at March 31, 2026.
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