"Guided by the theme, 'Accelerating Infrastructure, Leveraging Intelligence', we are embedding intelligence into how we build and serve, so decisions are faster, performance is more dependable and growth is durable by design".
Dear Shareholders,
FY 2025-26 has been a pivotal year for us as we progressed in purposeful consolidation towards a unified operating model across our cement portfolio. We strengthened scale through discipline, reinforced strategy through focused execution and translated ambition into measurable progress, increasingly enabled by intelligent systems that improve predictability and the speed of delivery.
As part of the Adani Portfolio, we benefited from deeper integration and alignment across our cement business, moving with clarity from expansion to consolidation, converting scale into structural strength. This shift reflects a more calibrated approach to growth, with a stronger focus on utilisation, cost discipline and operational resilience. Guided by the theme 'Accelerating Infrastructure, Leveraging Intelligence', we are embedding intelligence into how we build and serve, so decisions are faster, performance is more dependable and growth is durable by design.
The external environment during the year was marked by heightened global uncertainty, as geopolitical tensions added to volatility in energy, commodities and supply chains. Events such as the conflict in West Asia amplified pressure on energy markets and logistics networks, coupled with immediate inflationary pressures, sharpening cost pressures and reinforcing the need for resilience, disciplined execution and operational agility. These developments resulted in sustained pressure on fuel, logistics and other input costs, particularly towards the close of the year, with near-term volatility expected to persist.
Domestic developments added further complexity. Regional security tensions underscored the need for preparedness and operational agility, while an extended monsoon tested execution discipline across infrastructure-linked activities. At the same time, policy reforms, including the Goods and Services Tax (GST) rate reduction on cement from 28% to 18%, improved demand visibility and reinforced confidence in the sector's medium-term growth trajectory.
FY 2025-26 also marked my first full year as CEO, a year defined by accountability and intent. Our responsibility has been to convert scale into sustained competitive advantage, anchored in strong fundamentals: operational reliability, cost efficiency, product differentiation, digital enablement and sustainability embedded at the core of decision-making.
In parallel, this focus translated into tangible operating outcomes. Across ACC, we made substantial progress on structural cost improvement, supported by sustained modernisation of our manufacturing footprint. Targeted upgrades, capacity renewal and operating discipline have materially improved the average age and efficiency profile of our assets, strengthening cost competitiveness and resilience.
Guided by the philosophy of Reimaginaction, we believe that ambition must be validated through disciplined, consistent execution and that transformation is meaningful when reflected in outcomes. We also deepened our digital capabilities through advanced analytics and artificial intelligence (AI)-enabled decision frameworks across functions, improving responsiveness across operations and markets.
Aligned with our theme, we remain committed to playing a vital role in the continued growth journey of our cement business within the Adani Portfolio, advancing with prudence and building enduring value through balanced, integrated and future-ready progress.
During FY 2025-26, the operating environment reflected a combination of structural opportunity and short-term volatility. Infrastructure investments gathered pace and urban expansion continued across high-growth regions, even as the industry navigated pricing pressure driven by competitive intensity and seasonal demand fluctuations. Policy and tax developments affecting affordability and customer behaviour remained important considerations for the sector, alongside evolving expectations on performance, assurance and sustainability.
Leveraging real-time market intelligence and closer alignment across the cement business, we strengthened market presence, improved supply responsiveness and expanded our portfolio of premium and differentiated offerings.
Against this backdrop, our response was centred on disciplined execution and sharper market alignment. Leveraging real-time market intelligence and closer alignment across the cement business, we strengthened market presence, improved supply responsiveness and expanded our portfolio of premium and differentiated offerings.
During the year, we delivered record benchmarks across production, dispatch and sales, supported by synchronised planning across manufacturing, logistics and market execution, enabled by digital visibility. This strong operational momentum translated into healthy volume growth and improved realisations during the year, although performance in the latter part of the year remained impacted by input cost volatility, underscoring the importance of continued focus on cost efficiency. Our financial performance, resilient balance sheet and reaffirmed credit ratings reflect the strength of our fundamentals.
These outcomes reflect the collective commitment of our employees, partners and stakeholders, and reaffirm the strength of a strategy centred on disciplined growth, operational excellence and long-term value creation.
Cost optimisation remains central to our agenda. In a year marked by persistent input cost volatility, we have intensified our focus on efficiency and cost optimisation. We strengthened predictability through proactive cost actions, including fuel optimisation, productivity improvement and tighter logistics planning. We focused on structural cost improvement anchored in asset efficiency and operating discipline. Our growing use of renewable energy and alternative fuels continued to support sustainability commitments while enhancing long-term cost stability.
Across the wider cement network, sustained modernisation of our manufacturing footprint and operating discipline are improving capacity utilisation and efficiency, strengthening supply chain agility and supporting more consistent performance. Targeted upgrades have materially improved the average age and efficiency profile of our assets, reinforcing cost competitiveness. Our long-term cost target remains aligned with the portfolio roadmap and firmly on track.
We recognise that sustained efficiency is the result of hundreds of disciplined, incremental improvements. It is this culture of continuous optimisation across plants, procurement, logistics and corporate functions that progressively strengthens our cost resilience, competitiveness and ability to navigate business cycles with greater confidence.
We continue to advance in alignment with the broader growth trajectory of our cement business, remaining firmly on course towards our longterm growth vision.
During the year under review, we commissioned additional capacities. Together, these steps reflect measured scaling while maintaining operational stability.
More importantly, this scale reflects stronger institutional capability to deliver projects with certainty, integrate assets seamlessly and improve throughput across a national manufacturing network.
As part of the evolving unified cement ecosystem, the Group has announced the proposed amalgamation of ACC and Orient Cement Limited with Ambuja Cements Limited, subject to applicable approvals. This step is intended to simplify the corporate structure, strengthen governance and improve agility in manufacturing, supply chain and capital deployment, while supporting the long-term roadmap.
For us, this progression represents continuity and opportunity. It strengthens operating integration and environmental, social and governance (ESG) alignment.
We are streamlining structures, reducing silos and moving decisionmaking closer to the market. District-level ownership and sharper market responsiveness are being strengthened through disciplined accountability supported by digital visibility. In parallel, network integration initiatives are improving efficiency, transparency and service reliability, so scale is matched by repeatability and control.
A defining structural shift in the Indian cement industry is the movement from commoditisation towards premiumisation. Customers, whether individual home builders, contractors or institutional developers, are increasingly prioritising assured performance, durability and technical guidance over purely price-led decisions. This evolution is reshaping competitive dynamics, and premiumisation remains a central pillar of our growth strategy.
For us, premiumisation marks a broader capability shift encompassing product innovation, brand strength, deeper technical engagement and sustained customer education. During the year, premium cement volumes accounted for approximately 44% of trade sales.
For us, premiumisation marks a broader capability shift encompassing product innovation, brand strength, deeper technical connect and sustained customer engagement. During the year, premium cement volumes accounted for approximately 44% of trade sales. Flagship offerings such as ACC Gold continued to perform strongly in the superpremium segment, supported by sustained investment in research and development (R&D) and innovative materials, enabling performance-led differentiation aligned with future-ready construction needs.
Our technical services teams played an important role in strengthening customer outcomes. Through on-site advisory support and structured application training, we are building enduring relationships across the construction value chain, supporting trust, loyalty and stronger value realisation.
The growing adoption of blended and lower-carbon cements reflects rising environmental awareness. Our efforts to reduce carbon intensity, increase renewable energy usage and optimise clinker efficiency support environmental responsibility and commercial differentiation, positioning us for structurally stronger and more sustainable growth.
Sustainability is embedded in how we plan, invest and execute, supported by shared standards and governance across the wider cement ecosystem. These commitments translate into operational priorities, from energy efficiency and clinker optimisation to environmental metrics embedded into plant-level performance management.
We are also leveraging technology pathways being advanced across the portfolio, including nextgeneration process innovations and carbon capture initiatives developed with academic and international partners. Circularity remains central, supported by a high proportion of blended cements, higher use of alternative fuels and raw materials, renewable power integration and waste heat recovery systems (WHRS). Water stewardship and afforestation efforts reinforce responsibility beyond the factory gate.
Enterprise-wide frameworks such as the Adani Cement Sustainable, Circular, Environmental and Net- Zero Transformation (ASCENT) programme support standardisation, data discipline and performance improvement through digital integration. Participation in global coalitions and industry alliances also helps us remain connected to evolving best practices and innovation pathways.
Quality is not inspected at the end of the process; it is engineered into every stage of production. Across our ISO-certified manufacturing units, real-time monitoring and disciplined quality assurance protocols support consistency, reliability and performance.
We leverage state-of-the-art R&D capabilities, including the centre in Mumbai, to advance innovative materials and solution-led development that translate into tangible value at the construction site. Focused investments in research have strengthened low-clinker formulations and circular material applications, integrating fly ash, slag and other industrial by-products to enhance strength, durability and long-term reliability while advancing environmental stewardship.
Through intelligent manufacturing systems, predictive analytics and enhanced traceability, we sustain precision from clinker production to dispatch.
We offer a customised portfolio of Ready-mix Concrete (RMX) solutions to meet the needs of customers, ranging from individual home builders to large infrastructure and commercial developments. During FY 2025-26, we expanded our RMX network to 117 plants across 21 states and 42 cities. With over three decades of expertise, our RMX business continues to play a defining role in India's construction landscape.
Cement is the foundation upon which progress is built. As preferred cement partners, our products supported several demanding infrastructure and institutional developments during FY 2025-26, supplying projects where quality, consistency and reliability are non-negotiable.
We supplied nation-building projects, including the Navi Mumbai International Airport and engineering landmarks such as the Chenab Rail Bridge, as well as complex foundations. Serving such projects reflects the trust placed in our solutions and the discipline we bring to mission-critical applications.
This association strengthens our ability to serve large-scale projects with improved responsiveness, assured volumes and consistent quality standards, supported by shared capabilities, technical expertise and integrated logistics across the wider cement ecosystem.
During FY 2025-26, we benefited from a decisive transformation in how cement moves across the country. Logistics is being treated as a strategic lever to strengthen competitiveness, reliability and sustainability.
Digital capabilities, including the Cement Intelligent Network Operations Centre (CiNOC), Digital Postal Index Number (DIGIPIN), fleet intelligence and AI-enabled planning, are embedding data-driven intelligence into daily execution and enabling predictive coordination across the value chain.
In parallel, the physical logistics network continues to evolve through calibrated mode optimisation, supported by standardised governance frameworks and strengthened safety systems. This integrated transformation improves resilience and agility, ensuring growth is supported by cleaner, smarter and more predictable supply chains.
People and culture remain central to our progress. We prioritised capability building, leadership development and digital upskilling to ensure we remain agile, accountable and future-ready.
A key enabler of this vision is Adani Cement FutureX, spanning over 750 institutes and connecting with more than 1.3 million students. Designed as a knowledge bridge, FutureX integrates academic learning with real-world construction practices, helping future engineers and architects gain early exposure to modern materials, sustainability standards, digital tools and safety practices.
Internally, structured mentoring programmes such as Dronacharya reinforce continuity of expertise, while investments in R&D and technical excellence platforms support productivity, construction quality and safety standards. Beyond organisational capability, community initiatives in education, healthcare, livelihoods and water stewardship continued around our plant locations.
Designed as a knowledge bridge, FutureX integrates academic learning with real-world construction practices, helping future engineers and architects gain early exposure to modern materials, sustainability standards, digital tools and safety practices.
Safety is embedded as a strategic enabler of operational excellence. We view safety as a catalyst for reliability, asset protection and workforce confidence. By proactively engineering risk out of processes through technology, leadership accountability and disciplined execution, we strengthen operational stability and support uninterrupted performance.
Innovations including droneenabled confined space inspections, automated sampling systems, smart sensors and AI-driven monitoring are reducing exposure, minimising downtime and strengthening process reliability. Through focused governance, structured shutdown protocols and recognition of Safety Champions, we continue to reinforce a strong Zero Harm culture.
During the year, we sustained structured engagement across stakeholders. Capital markets' plant visits enhanced transparency and strengthened investor confidence. Regular Board engagement, including site visits, reinforced alignment between strategy and execution.
Internally, CEO SamvAAAd continued as an employee-focused dialogue platform, while externally, structured interactions with dealers, contractors, transporters and channel partners reinforced shared ambition and performance accountability.
We also deepened engagement with builders, developers and project influencers through curated forums and industry collaborations. Platforms such as NirmAAAnotsav, organised in partnership with the Confederation of Real Estate Developers' Associations of India (CREDAI), supported dialogue on quality construction, sustainability and modern building practices. Dedicated engagements with infrastructure and institutional customers further positioned us as a trusted technical partner.
Collectively, these efforts strengthened trust, reinforced brand preference and built enduring relationships across markets.
FY 2025-26 reaffirmed that enduring institutions are shaped by culture, shared values and collective pride. The year was marked by peoplecentric initiatives that brought employees, partners and families together around a common sense of purpose.
Our understanding of brand continues to evolve from a communication exercise to a broader ecosystem of trust, participation and belonging. As the business expands, it is equally important that growth remains relatable and emotionally resonant for the many stakeholders who interact with our products every day.
Community- and family-oriented forums across locations foster inclusion and social cohesion, recognising the vital role families play in supporting employees and nurturing stable local ecosystems. For us, strong social bonds underpin strong institutions, and collective pride sustains long-term performance.
India remains one of the most compelling long-term growth markets for cement. Even as global economies navigate uncertainty, India's momentum remains resilient, supported by domestic consumption, accelerating urbanisation and sustained public investment in infrastructure. Highways, freight corridors, metro networks, ports, airports, housing and industrial corridors are creating a durable demand base. In this environment, cement is not simply a participant in growth, it is a critical enabler of national progress.
Policy clarity that improves affordability and project viability can accelerate execution and strengthen the sector's role in India's journey towards a multi-trillion-dollar economy. The direction reflected in the Union Budget 2026, combining demand support with a focus on sustainability, also reinforces the importance of investing in efficiency and lower-carbon pathways.
Consolidation across the sector is also strengthening efficiency and capital discipline. We are well-positioned to benefit from these shifts through disciplined expansion, improved execution and strong governance.
As I reflect on the year, I return to one conviction: transformation becomes enduring only when it is embedded in systems and processes. As we progress towards our long-term goals, we are rethinking how the business operates, embedding intelligence into infrastructure delivery and enabling faster, smarter and more sustainable execution.
We remain committed to transparent governance, ethical conduct and the creation of sustainable long-term value for all stakeholders.
The progress achieved in FY 2025-26 reflects the commitment of our employees, the trust placed in us by customers, the collaboration of partners and the continued confidence of investors. As we advance within a strengthened ecosystem, we remain focused on enabling infrastructure, supporting resilient communities and contributing meaningfully to India's development journey. Our foundations are robust, our strategic direction is clear and the opportunity remains strong over the long term. By accelerating infrastructure and leveraging intelligence, we will create enduring value for stakeholders and for the nation we serve.
I extend my sincere appreciation for your continued trust and partnership.
Warm regards, Vinod Bahety
