ACC Limited - Integrated Annual Report 2025-26

Growth

Adani Cement has delivered the highest volume growth in the industry, with ACC achieving an annual cement sales volume of 43.9 million tonnes, a growth of 12% year on year. Strategic initiatives to consolidate market presence and improve realisations drove this record performance. Growth was further supported by an increased share of premium products, enhanced branding and activation efforts, deeper influencer engagement through technical support teams and the delivery of value-added, regionspecific solutions. Despite a volatile near-term cost environment, the Company's growth trajectory is being progressively reinforced through the integration of AI and advanced technologies across operations, enabling faster decisionmaking, enhanced efficiencies and accelerated infrastructure delivery. Continued investment in physical infrastructure has improved operational efficiency. Looking ahead, Adani's focus on premiumisation and solution-led offerings is expected to enable stronger realisations and long-term profitability.

Earnings

Optimisation of key cost components, including power, fuel and freight, contributed to a profitability of ` 2,137 crore in FY 2025-26. The reduction in cost was driven by lower power and fuel cost due to fuel mix optimisation, increased share of green power and also enabled by the implementation of a unified business model supported by a leaner organisational structure, alongside automation and digitalisation initiatives that streamlined processes and improved efficiency. Further cost advantages were realised through synergies with the Group company, enabling improved commercial negotiations and enhanced procurement efficiencies wherever feasible.

*Note: The Company had changed its financial year end from December 31 to March 31 in FY 2022-23. Therefore, the figure for FY 2022-23 is for 15 months and not comparable with the figures for the 12 months year ended March 31, 2024/25/26.
**Regrouped, refer note 66 of Consolidated financial statement.

Brand Trust Leading to Purposeful Growth

Adani Group is recognised as India's fastest-growing brand by Brand Finance in the India 100 Report 2025; this honour holds special significance for Adani Cement as stewards of Ambuja Cements and ACC. It reflects earned trust, strong values and purposeful growth. When strategy, storytelling and stakeholder focus align, brands evolve beyond markets into enduring movements.

Trust Driving Sales Excellence

ACC benefits from Adani Cement's sales approach, which is rooted in quality, trust and long-term partnerships rather than volume alone. Last year this translated into increased revenue, with premium products contributing 44% of trade sales. Strong product performance, durable packaging and reduced complaints strengthened brand recall, while digital platforms improved engagement and transparency. Communityfocused initiatives further reinforced loyalty, demonstrating how consistent quality continues to power sustainable growth.

A defining strategic development has been the proposed amalgamation of ACC and Orient Cement under a unified operating framework, advancing the 'One Cement Platform' vision. This integration is expected to accelerate growth trajectory, support cost discipline, strengthen operational performance and enhance capital efficiency. The initiative is designed to unlock synergies and deliver sustained value creation.

Capacity Expansion

ACC is poised to benefit from Adani Cements' targeted capacity of 119 MTPA by FY 2026-27.

Capacity (MTPA)

Focused Expansion

ACC, together with its parent company Ambuja Cements Limited, is undertaking a series of organic and inorganic capacity expansion initiatives to improve its manufacturing capacity.

*Note: The Company had changed its financial year end from December 31 to March 31 in FY 2022-23. Therefore, the figure for FY 2022-23 is for 15 months and not comparable with the figures for the 12 months year ended March 31, 2024/25/26.

Enterprise Value Creation

ACC has transitioned from a traditional finance-led model to a dynamic business finance framework that prioritises long-term value creation and meaningful business partnerships. Committed to delivering sustained stakeholder value, the Company has adopted a disciplined financial strategy to optimise resource utilisation and capital allocation. Additionally, innovative practices and streamlined project execution have enabled ACC to achieve faster project completion timelines, all while laying a robust foundation for sustainable growth and long-term stakeholder success.

Enterprise Value Framework

Growth-oriented (Future)
Gatekeeper for compliance
Broader approach covering ESG
Multi-stakeholder engagement
Focus beyond Cash Flow and Liquidity Management

Integration and Optimisation of Acquired Assets

ACC has pursued a disciplined M&A strategy to accelerate scale, strengthen raw material security and enhance cost leadership. Since becoming part of the Adani portfolio, the cement platform has added 32.9 MTPA of capacity through strategic acquisitions (including under-construction capacity) at a cumulative transaction value of ` 24,896 crore.

The integration of acquired assets focused on operational harmonisation across procurement, logistics, plant operations and commercial systems to unlock synergies in freight optimisation, clinker balancing and energy sourcing. This enabled the consolidated capacity of ACC's parent company, Ambuja Cements, to expand to 109 MTPA, while reducing lead distances and logistics costs across core markets and strengthening regional market share.

Integration has also facilitated targeted CAPEX and OPEX initiatives, including debottlenecking, standardised maintenance practices and productivity enhancements, resulting in improved asset utilisation and cost efficiencies. Supported by Group advantages in power, coal and port infrastructure, these actions accelerate progress towards medium-term capacity and cost objectives. Capacity utilisation across acquired assets improved meaningfully to 54%, up by 16 pp from 38% last year, reflecting disciplined execution of the integration and optimisation roadmap.

`24,896 crore

Worth of Acquisitions Made by ACC and its Parent Company Ambuja Cements from FY 2022-23 to 2025-26

Seamless Integration of Orient Cement into Adani Cement

The integration of Orient Cement Limited (OCL) into the Adani Cement ecosystem marks a key milestone in the Group's proven inorganic growth strategy. Following ACC's parent company, Ambuja Cements Limited's acquisition of OCL on 22 April 2025, a structured, peoplecentric integration programme was swiftly initiated to ensure operational continuity and cultural alignment. A CEO-led town hall reinforced transparency and reassurance, while cross-functional teams collaborated from day one to welcome employees into the Adani Parivar and harmonise systems and processes.

Significant progress has been made across functions. The HR team has completed onboarding, grade alignment, culture harmonisation, leadership appointments and workforce transitions. The Sales and Marketing team has successfully onboarded dealers, completed brand transition and enabled demand-generation activities. Logistics, Manufacturing, Digital and Procurement teams have ensured system readiness, regulatory compliance, supply

continuity and SAP migration planning. Collectively, these efforts reflect disciplined execution and Adani Cement's capability to integrate acquisitions smoothly, laying a robust foundation for Orient Cement's future growth within the Group.

Cost Optimisation and Efficiency

ACC is strategically positioned to capitalise on India's structural growth momentum, supported by the scale and integration advantages of the Adani infrastructure capacity to be commissioned in FY 2026-27. In parallel, the Company continues to accelerate its decarbonisation roadmap, with the share of green power increasing to 29.8% in FY 2025-26, and a clear target to reach 60%** by March 2028.

% Break-up of Total Operating Cost (ACC's Cement Business)

*Other Costs include: Other expenses; Employee benefits expenses; Changes in inventories of finished goods, work-in progress, and stock-in-trade.
**Target across Adani Cement business.

Leveraging Group Synergies

ACC leverages the collective strength of the Adani Group by aligning its strategic initiatives with the Group's extensive capabilities. Through enhanced group synergies and efficiency initiatives. Kiln fuel costs were maintained at ` 1.61 per '000 kCal, placing the Company among the most cost-efficient players in the industry, while also ensuring that the Company is poised to overcome near-term uncertainties.

Synergy benefits providing assurance on Supply chain and off take

Further linkage through Centre of Excellences ensuring execution within budget and time

Demonstrated support and arm's length synergy benefits in the past

Collaborating with Adani Foundation on community development initiatives

Supply of building materials to Adani Realty

Brand partnerships with Adani Media Networks on key events

Financial Stability

Assets

Orient, Penna and Sanghi have fully transitioned to Adani Cement brands under ACC's parent company Ambuja Cements, receiving a positive response from dealers, supply chain partners and end customers. ACC's asset base now stands at ` 27,525 crore, growing 8.3% as compared to FY 2024-25. The announcement of the amalgamation of ACC and Orient Cement with Ambuja Cements will further strengthen this asset base under a unified corporate structure.

*Note: The Company had changed its financial year end from December 31 to March 31 in FY 2022-23. Therefore, the figure for FY 2022-23 is for 15 months and not comparable with the figures for the 12 months year ended March 31, 2024/25/26.

Debt Management

In FY 2025-26, ACC remained debtfree and maintained the highest credit rating (Crisil AAA (Stable) and A1+), underlining a strong balance sheet and liquidity.

Working Capital Management

Financial highlights show business level working capital at 45 days, reflecting effective working capital practices to unblock funds in inventory and receivables.

Cash Flow Management

ACC continues to maintain a disciplined approach to liquidity management while executing its strategic growth agenda. The Company consistently generates strong cash flows from operations, reflecting the resilience and efficiency of its core business. These inflows are strategically deployed towards growth initiatives, including capacity expansion and acquisitions, in alignment with the Company's long-term growth priorities. Financing outflows are managed in a calibrated manner to optimise the capital structure. Overall, the Company maintains a balanced liquidity position, supported by prudent cash management practices and robust underlying operating performance.

Credit Rating

CRISIL has reaffirmed ACC's top-tier credit ratings with CRISIL AAA/Stable (long term) and A1+ (short term), reflecting the strength of its balance sheet, strong cash accruals and low leverage profile.

Sustainable Investment Strategy

Over the past few years, ACC has made targeted investments to minimise environmental impact and promote eco-friendly construction practices. The Company has improved its energy efficiency while also increasing the share of renewable energy across operations, positioning itself for lower power costs over the long term and advancing its green energy ambitions. The Company has strengthened its waste management practices by adopting circular economy principles, reducing dependence on virgin materials and minimising waste. These initiatives support ACC's ambition to achieve Net Zero emissions by 2050. Notably, ACC is the only large Indian cement company with Net Zero targets validated by the Science Based Targets initiative (SBTi), underscoring its leadership in sustainable construction practices.

AAA (Stable)
and A1+

CRISIL Ratings for Long-Term and Short-Term Credit

Capital Deployment and Delivery

ACC follows a disciplined capital allocation framework, prioritising low-cost capacity expansion, high-return decarbonisation projects and targeted brownfield debottlenecking to accelerate capacity at efficient capital intensity. Synergies across the Adani platform in power, coal sourcing, ports and logistics enhance project execution efficiency and materially reduce unit costs. The Company continues to generate strong operating cash flows to support near-term capex and overcome near-term challenges while maintaining robust credit metrics and safeguarding shareholder value.

Hedging

ACC employs robust hedging strategies to manage financial risks stemming from market volatility. These measures help mitigate exposure to fluctuations in commodity prices, foreign exchange rates and interest rates, thereby supporting financial stability and safeguarding the Company's overall performance.

Financial Engineering

ACC optimises its capital structure through innovative financial structuring to enhance shareholder value and better manage risks. By effectively leveraging financial instruments, capital markets and structured transactions, the Company navigates complex financial environments while supporting sustainable growth and strengthening its resilience to market uncertainties.

Tax Transparency

ACC has established a dedicated tax governance framework to manage its tax affairs in an ethical manner. It ensures timely compliance with tax obligations, thereby strengthening stakeholder trust and safeguarding the Company's reputation. A specialised team, led by subject matter experts, maintains adherence to international best practices through well-defined standard operating procedures. Oversight of the tax compliance programme is provided by the Legal, Regulatory and Tax Committee at the Board level, with the Board of Directors retaining ultimate authority on tax matters, reinforcing the Company's commitment to compliant and professional tax practices.

Shareholder Returns

ACC delivered solid shareholder returns in FY 2025-26 driven by strong cash generation and continued balance sheet strength. The Board recommended a final dividend of ` 7.5 per share for FY 2025-26 (record date 12 June 2026).

Investor Relations

ACC has a proactive, investor-first Investor Relations (IR) function that prioritises transparency, timely disclosures and continuous engagement with the global investment community. The IR team clearly communicates the Company's strategy, operational performance and sustainability priorities through structured platforms, including quarterly and annual results, earnings calls, investor presentations, non-deal roadshows, one-to-one meetings and organised plant visits. Engagement is further strengthened through participation in leading investor forums, such as Adani Annual Conferences.

Economic Value Created

(` crore)

	FY 2025-26	FY 2024-25
Direct Economic Value Generated	26,364	22,992
Revenue from Operations	25,962	21,920
Other Income	402	1,072
Economic Value Distributed	25,576	21,402
Cost of Goods Sold*	16,854	12,511
Employee Wages and Benefits	744	718
Payments to Providers of Capital	141	141
Payments to Government	7,792	7,989
Community Investments	45	43
Economic Value Retained	788	1,590

*Cost of Goods sold includes: (i) Cost of material consumed, (ii) Purchase of stock-intrade, (iii) Changes in inventories of finished goods, work-in progress and stock-intrade, (iv) Power and fuel, (v) Consumption of stores and spares, and (vi) Consumption of packing material.

Engagement and Disclosure Highlights

Operational and Financial Traction

The Company reported a sustained performance in FY 2025-26, marked by record annual sales volumes and strong growth in revenue, driven by premiumisation, improved capacity utilisation and disciplined execution across operations. Operating EBITDA increased on a normalised basis, reflecting improvement in operating performance. However, EBITDA per tonne moderated year-on-year, impacted by higher energy, logistics and input costs.

Despite these headwinds, volume growth, improved product mix and operational efficiencies supported overall financial delivery. These operating outcomes have been central to IR messaging, reinforcing the Company's investment case.

Targeted Investor Outreach

The management engaged in frequent interactions with institutional investors and sell-side analysts via investor conferences, nondeal roadshows and conference presentations.

Site-level Transparency

The Company organised plant visits for analysts and investors (Marwar Mundwa - Jun'25, Sanghipuram - Mar'26) to major facilities (to demonstrate capacity ramp-ups, ongoing projects and sustainability pilots), supporting deeper technical due diligence by investors.

Enhanced Reporting Standards

ACC has upgraded its public disclosures and governance transparency as part of Group initiatives, including Tax Transparency reporting and enhanced sustainability/BRSR disclosures, to meet investor expectations for clear, auditable non-financial information.

Cement Chalisa

Off-Launched in Q1 FY 2025-26 by the Board and the CEO, the Cement Chalisa was introduced to enhance the understanding of Adani Cement's purpose and strategy among all stakeholders. Anchored in the CEO's ROCE vision, it emphasises the ambition to go beyond scale and build an integrated building materials ecosystem aligned with nation building. The Cement Chalisa presents a cohesive narrative covering the Adani Group's legacy, ACC and Ambuja brands, industry evolution, plants, projects, people, governance, financials and major value drivers. purposeful execution.

Strengthening Investor Confidence through Strategic Engagement

During the year, ACC's parent company, Ambuja Cements, strengthened investor engagement through its inaugural Capital Markets Plant Visit at the Marwar Mundwa Integrated Plant in Rajasthan. The two-day programme brought together 46 senior analysts from 38 leading domestic and global institutions, offering immersive insights into operations, leadership perspectives and strategic priorities. Plant walkthroughs, leadership interactions and portfolio showcases highlighted the Company's transformation into a future-ready building materials solutions provider, driven by capacity expansion, digital integration and Group synergies. The engagement received positive feedback, reinforcing confidence in execution capabilities and long-term growth prospects.

Building on this momentum, Adani Cement hosted its second Capital Markets Plant Visit at the Sanghipuram integrated plant in Kutch, Gujarat, welcoming prominent analysts and investors. The visit showcased Sanghipuram's scale, strategic importance and strong resource base, including over one billion tonnes of limestone resources, integrated clinkerisation and grinding operations, and a highly digitised control environment. Discussions also highlighted logistics advantages enabled by a captive jetty and ongoing rail connectivity investments aimed at enhancing multimodal efficiency. Collectively, these engagements strengthened transparency and reinforced investor confidence in Adani Cement's capability to overcome near-term challenges and achieve long-term goals.

DisciplinedValue Creation