ACC Ltd Management Discussions

Prelude

ACC Limited, a key constituent of the diversified Adani portfolio and along with its parent company Ambuja Cements is the worlds ninth-largest building materials and solutions company, has been a leader in cement and ready-mix concrete for over nine decades. With a robust pan-India presence anchored by 20 cement plants and 117 ready-mix concrete units, the Company has established itself as a defining force in building and strengthening the nations infrastructure with enduring performance and reliability. Guided by the philosophy of Reimaginaction, where ambition is validated through disciplined execution, ACC continues to translate scale into sustained competitive advantage. Rooted in a legacy of engineering excellence and uncompromising quality, ACC has built multi-generational trust among builders and institutions alike. Strategic partnerships with leading industry bodies such as Builders Association of India (BAI), NAREDCO and CREDAI further strengthen its engagement with the construction and real estate ecosystem, reinforcing collaborative growth and sectoral advancement. ACC Limited stands stronger, more agile and future-ready, reaffirming its leadership in Indias cement industry. The year has been defined by strategic capacity expansion through the commissioning of new grinding units, supported by debottlenecking and modernisation initiatives aligned with the nations accelerating infrastructure growth and rising construction demand. Building on this momentum, the Company achieved a record annual cement sales volume of 43.9 million tonnes in FY 2025-26, underpinned by best-in-class working capital of 45 days and a strengthened EBITDA margin. Operational benchmarks were further elevated through improved capacity utilisation, disciplined pricing and expected to deliver gradual cost optimisation, reinforcing EBITDA per tonne. Cost efficiencies are expected to be driven by optimised lead distances, a higher share of sea-based logistics and an increased proportion of green power in the energy mix, further enhancing operational competitiveness. With Adani Cements installed capacity of 109 MTPA, targeted to reach 119 MTPA by FY 2026-27 in a phased manner, the Company plays a crucial role in enabling sustainable infrastructure development. As part of the Adani Groups integrated industrial platform spanning energy, logistics and infrastructure, ACC benefits from coordinated capabilities that convert scale into operational resilience. ACCs products have contributed to several iconic infrastructure landmarks, including the Navi Mumbai International Airport (NMIA), and the Chenab Rail Bridge, projects that exemplify engineering excellence and nation-building at scale.

Sustainability remains central to ACCs strategy and is integral to how the Company grows. In pursuit of the Companys Net Zero 2050 commitment, ACC has made significant progress on its ESG agenda through increased alternative fuel use, reduced carbon intensity and advancing water positivity, demonstrating that responsible growth and strong business performance go hand in hand. Aligned with the Groups climate roadmap and adoption of globally recognised sustainability frameworks, sustainability considerations increasingly inform capital allocation and operational decision-making. The Company continues to expand blended cement offerings, improve thermal efficiency and optimise resource utilisation, recognising that durability and lifecycle performance are as critical as emissions reduction at source. Innovation and digital transformation continue to shape the Companys operating model. By leveraging data, artificial intelligence and automation across the value chain from Quarry to Lorry, ACC has strengthened operational metrics, enhanced customer engagement and improved overall productivity. Through its Cement Intelligent Network Operations Centre (CiNOC), the Company leverages predictive analytics, real-time insights and intelligent automation thereby optimising energy use, improving reliability and strengthening decision-making. Digital integration across planning, operations and markets enables faster decisions and more predictable infrastructure delivery at scale.

Backed by the trust of employees,

partners and shareholders,

and supported by strong credit

credentials with CRISIL and CARE

Ratings assigning AAA (Stable)

long-term ratings and A1+ short-

term ratings, ACC continues

to build a resilient and future-

focused organisation. Deep

stakeholder engagement, industry

partnerships and initiatives such

as Adani Cement FutureX which

engages 750+ institutions and over

1.3 million students, reinforcing

trust, capability building and long-

term value creation across the

construction ecosystem. With its

legacy of reliability, the enduring

strength of the TRUST factor and

a renewed strategic momentum,

ACC is well positioned to shape the

future of construction in India with

confidence and purpose.

Unifying Scale, Strength and Synergies under One Cement Platform

Adani Cement is realising its One Cement Platform through the proposed amalgamation of ACC Limited and Orient Cement Limited with Ambuja Cements Limited, creating a unified, pan-India building materials leader with enhanced global competitiveness. Building on the successful integration of Sanghi Industries and Penna Cement, this consolidation is designed to unlock operational and financial synergies, streamline governance and strengthen execution agility. The integrated platform will support the journey towards 119 MTPA capacity by FY 2026-27, reinforce ESG leadership and enable sustained long-term value creation through a simplified, resilient and future-ready organisation.

Towards Net Zero

ACC, alongside its parent company Ambuja Cements Limited (ACL), is firmly committed to reducing its carbon footprint and achieving Net Zero by 2050. This commitment has been followed in letter and spirit as ACC is the leading cement company in India and one of the four large-scale cement companies globally to secure Science Based

Targets initiative (SBTi) validation for both Near-Term (2030) and Net Zero (2050) targets under the Cement Sectoral Decarbonisation Approach. These targets cover Scope 1, 2 and 3 emissions and align with Indias Nationally Determined Contributions under the Paris Agreement. Additionally, major initiatives include lowering the clinker factor, optimising energy efficiency, expanding waste heat recovery systems, and increasing renewable energy capacity. The Company is also investing in innovative approaching like rotodynamic heating by using green energy use and pilot on carbon capture and utilisation.

Showcasing Execution Strength to Capital Markets

Adani Cement hosted its first Capital Markets Plant Visit at the Marwar Mundwa Integrated Plant in Rajasthan, engaging 46 analysts from 38 institutions. Through immersive plant walkthroughs and leadership interactions, the Company highlighted its capacity expansion initiatives, digital integration and Group synergies, reinforcing investor confidence in its execution capabilities and long-term growth strategy.

Economic Scenario

Global growth in 2025 remained stable despite the presence of divergent forces. While evolving trade policies introduced uncertainty and weighed on cross-border activity, sustained technology-led investments, particularly in artificial intelligence, provided a countervailing source of momentum, with growth more pronounced in North America and Asia than in other regions. Growth was further supported by fiscal and monetary interventions, broadly accommodative financial conditions and the resilience of

During the year, Adani Cement hosted the second edition of its Capital Markets Plant Visit at the Sanghipuram integrated cement plant in Kutch, Gujarat, bringing together leading analysts and investors from prominent domestic and global institutions. The visit offered participants first-hand exposure to Sanghipurams scale, operational capabilities and strategic significance within the Adani Cement ecosystem. Leadership interactions and guided plant

the private sector. However, global uncertainties, including geopolitical developments and energy market volatility continued to pose risks to growth. Overall, global GDP is estimated to have expanded by 3.4% in 2025, while headline inflation is estimated at 4.1%.* During the year, the country secured three sovereign credit rating upgrades. Manufacturing and construction recorded growth of approximately 7%. Investment momentum remained strong, with gross fixed capital formation (GFCF) increasing by 7.8% in FY 2025-26 walkthroughs highlighted the facilitys robust natural resource base, integrated manufacturing infrastructure and digitally enabled operations. Discussions also underscored Sanghipurams logistics advantage through its captive jetty and ongoing investments in rail connectivity. The engagement reaffirmed the plants role in enhancing operational efficiency, ensuring resource security and supporting long-term value creation.

and consistently contributing around 30% of GDP over the past three years. Inflation moderated significantly, with average headline CPI inflation at 1.7% during April-December 2025, reflecting broad-based easing in food and fuel prices. Among major emerging markets, India recorded one of the sharpest declines in inflation in 2025**. Although input costs for sectors such as cement remained sensitive to global commodity trends. Infrastructure development gathered pace, with central capital expenditure increasing more than fourfold since FY 2017-18. Connectivity expanded considerably through highway development, near-universal rail electrification, enhanced aviation capacity and improved power availability, all of which support sustained long-term economic growth.

Economic Scenario Outlook

Indias growth outlook is remains structurally strong over the medium to long term, supported by domestic demand, continued structural reforms and a stable macroeconomic environment. Over the medium term, strong domestic growth drivers are likely to maintain economic momentum even as global demand conditions evolve. However, prolonged geopolitical tensions in West Asia, particularly the Iran-Israel conflict, could pose risks to growth. Ongoing infrastructure investments are anticipated to improve logistics efficiency, lower production costs and enhance overall competitiveness. Investment conditions are also expected to remain stable, with the real investment-to-GDP ratio projected to remain around current levels and capital productivity supported by sustained efficiency improvements.

Fiscal policy is expected to play a central role in advancing the vision of Viksit Bharat. This could involve a further increase in the share of capital expenditure within total Government spending, alongside a strategic focus on advanced technology sectors such as artificial intelligence, space, robotics, advanced infrastructure and defence. Such expansion is anticipated to be supported by improved tax compliance and revenue buoyancy rather than significant structural tax reforms.

Cement Industry

The operating environment during FY 2025-26 remained dynamic, with input cost pressures, particularly in fuel, logistics and energy continuing to influence margins across the industry. Demand conditions also remained variable across regions and periods, reinforcing the need for disciplined execution and cost management.

Demand has remained supported with variability across regions and periods, driven by strong construction activity. With acceleration in construction activity post monsoon, demand improved sequentially in H2 FY 2025-26 as compared to average growth of 6% to 6.5% in H1 FY 2025-26.

Further support is anticipated from a reduction in GST on cement and the governments continued emphasis on infrastructure spending, supporting demand trends, subject to execution pace and external factors.

In response to favourable demand prospects, leading cement producers are expanding capacity through organic and inorganic routes. Industry capacity additions are projected at 42-44 MTPA in FY 2026-27, following 50-55 MTPA in FY 2025-26. Capacity utilisation is expected to remain stable at around 70-71% in FY 2026-27, with higher utilisation in northern and central regions and relatively moderate levels in the south due to capacity overhang.*

Cement Industry Outlook

The Company expects cement demand in India to grow by around 5% in FY 2026-27, following a strong growth trajectory of 6.5-7.5%* in FY 2025-26, supported by sustained momentum across the housing and infrastructure sectors. Demand remained resilient during the year, driven by robust construction activity, although evolving geopolitical developments in West Asia have contributed to volatility in fuel and raw material markets. Looking ahead, a potential reduction in GST on cement, together with the Governments continued focus on infrastructure-led development, is expected to further support demand momentum in FY 2026-27, despite elevated input costs arising from global supply chain disruptions. Against this backdrop of healthy demand, leading cement manufacturers continue to pursue both organic and inorganic capacity expansion strategies to strengthen market presence, while actively managing cost pressures related to higher coal, petcoke and freight expenses, along with the impact of Rupee depreciation on imported inputs.

Overall, the industry is positioned for long-term growth, despite near-term demand and cost fluctuations. Rapid capacity expansion, increased technology adoption and advancing sustainability initiatives are enhancing competitiveness and operational resilience. Backed by policy reforms, green innovation and expanding export opportunities, Indias cement sector is well positioned to support the countrys long-term infrastructure ambitions and enable sustainable growth in the years ahead.

Key Demand Drivers

Urbanisation and Housing Development	Increasing Per Capita Consumption	Government Infrastructure Push
Rapid urbanisation, rising housing	India\u2019s per capita cement	Rising capital expenditure on
demand and Government-led	consumption continues to	highways, ports, metro rail
affordable housing programmes	remain significantly below global	networks and industrial corridors is
continue to drive sustained	averages, indicating substantial	accelerating construction activity
growth in cement consumption.	long-term growth potential as	and strengthening cement demand.
Expanding investments in	economic development and	Long-term consumption is further
commercial real estate, logistics,	construction activity accelerate.	supported by Production Linked
manufacturing and data centres	At approximately 290 kg per	Incentive (PLI) schemes, Smart
are diversifying demand streams.	capita, compared to the global	Cities initiatives, sustained FDI
Improving rural incomes and	average of nearly 540 kg, cement	inflows and manufacturing shifts
infrastructure provide stability,	consumption in India is expected	driven by the China+1 strategy. The
while enhanced multimodal	to witness sustained growth over	$ 2.6 trillion National Infrastructure
logistics reduce freight costs and	the coming decade, supported by	Pipeline, together with strong
expand market reach, supporting	rapid urbanisation, rising household	capital expenditure allocations in
long-term structural growth in an	formation and increasing	FY 2025\u201326, continues to reinforce
underpenetrated economy.	penetration of formal housing.	sustained infrastructure-led growth
	These structural demand	for the sector.
	drivers are likely to underpin
	long-term industry expansion,	$ 2.6 trillion
	even as the sector navigates	National Infrastructure Pipeline
	near-term volatility in input	expected to reinforce sustained
	and operating costs.	infrastructure-led growth

Business Review

Sustainability and Climate Strategy

ACCs sustainability strategy aligns with Indias Nationally Determined Contributions, the Paris Agreement and the UN Sustainable Development Goals, focusing on emissions reduction, resilience and progress towards Net Zero. ACC is the first large-scale Indian cement company to have its Net Zero targets validated by the SBTi. Climate risk assessments conducted across all plants in line with Task Force on Climate-related Financial Disclosures (TCFD) and International Financial Reporting Standards (IFRS) S2 guidelines have identified key physical and transition risks while highlighting opportunities such as increased renewable energy adoption and expanded Waste Heat Recovery Systems to enhance long-term resilience and sustainability.

Environmental Management System

ACCs Environmental Management System is aligned with leading industry standards to proactively manage climate risks, water stewardship, circular economy practices and biodiversity conservation. Overseen by the Corporate Responsibility Committee, the framework integrates climate action with national and global policy commitments, reinforcing sustainability across all operations.

Climate-related Risks and

Opportunities

ACC recognises both physical and

transition climate risks, including

regulatory, technological, market

and extreme weather-related

disruptions. The Company has

undertaken a comprehensive

Climate Change Risk Assessment

across multiple time horizons and

embedded these risks within its

Enterprise Risk Management (ERM)

framework. Alongside mitigation

planning, ACC leverages emerging

opportunities to drive innovation,

strengthen sustainability leadership

and enhance competitive advantage.

				Climate related
Acute Physical Risks	Chronic Risks	Transitional Risks
			Opportunities
y Fluvial flooding	y Temperatures	y Policy and Legal	y Energy source
y Coastal flooding	extremes	y Technology	y Resource efficiency
y Pluvial flooding	y Water stress	y Market	y Products and services
y Cyclone
y Drought
y Wildfire

Internal Carbon Pricing

ACC has implemented an Internal Carbon Pricing mechanism at $ 28 to embed climate

per tonne of CO 2

accountability into strategic and operational decision-making. This shadow pricing model assesses financial exposure at both plant and organisational levels, encouraging emission reduction, informed investment decisions and low-carbon growth pathways. By integrating carbon considerations into capital allocation, supplier selection, operational efficiency and compliance planning, the initiative strengthens employee engagement and supports disciplined, forward-looking carbon management across the business.

Net Zero

ACC has secured Science Based Targets initiative validation for both its Near-Term 2030 and long-term Net Zero 2050 targets, including alignment under the Cement Sectoral Decarbonisation Approach. These commitments cover Scope 1, 2 and 3 emissions and align with Indias Nationally Determined Contributions under the Paris Agreement.

In a landmark step, Adani Cement has become the first Indian cement company to adopt TNFD recommendations, reinforcing its commitment to nature-positive growth through transparent disclosures, strong ESG practices and measurable sustainability initiatives. The partnership with Coolbrook for the worlds first commercial deployment of the RotoDynamic HeaterT technology, marks its first industrial-scale application to advance cement decarbonisation and support the Companys Net Zero 2050 ambition.

ACCs parent company, Ambuja Cements has secured an Indo-Swedish grant to undertake a pre-pilot feasibility study on Carbon Capture and Utilisation with IIT Bombay and Eco Tech, Sweden, reinforcing its commitment to innovation-led decarbonisation and global collaboration.

Energy Management

ACC strengthens energy performance through ISO 50001-certified systems, regular audits and structured governance supported by focused training. Given the energy-intensive nature of cement manufacturing, the Company closely monitors thermal and electrical energy intensity through periodic reviews, driving improvements through process optimisation, renewable energy integration and Waste Heat Recovery Systems. Participation in the Perform, Achieve and Trade (PAT) scheme further supports reductions in specific energy consumption and enhances sustainable manufacturing performance.

Renewable and Green Power

Adani Cement is accelerating its transition to clean energy with a target of achieving 60% green power by 2028. The roadmap includes 1 GW of solar and wind capacity and 376 MW of Waste Heat Recovery Systems, strengthening decarbonisation efforts and reducing dependence on fossil fuels.

Co-processing of Waste

ACC deploys co-processing technologies to substitute fossil fuels with alternative fuels derived from agricultural, municipal and industrial waste. Dedicated infrastructure and laboratory controls ensure safe kiln operations while diverting waste from landfills and advancing circular economy practices, this year the Company has co-processed 4.5 lakh tonnes of waste.

Thermal Substitution Rate (TSR)

The Thermal Substitution Rate measures the share of thermal energy derived from alternative fuels instead of conventional fossil fuels. ACC aims to achieve a TSR of 28% TSR by 2030, supporting fuel diversification and reducing carbon emissions.

Optimising the Clinker Factor

ACC focuses on lowering the clinker factor by increasing the use of supplementary cementitious materials such as fly ash and slag. This approach reduces emissions per tonne while

CO 2

maintaining product strength and durability.

Use of Supplementary Cementitious Materials

Supplementary cementitious materials such as fly ash, slag, calcined clay and waste gypsum are incorporated into blended cements including PPC and PSC. Their use reduces clinker intensity, lowers emissions and supports circular economy principles through the productive reuse of industrial by-products.

Use of Technology

ACC leverages advanced technologies including AI-driven optimisation, smart sensors and real-time monitoring to enhance energy efficiency and operational performance. Digital tools and engineering innovations improve thermal efficiency, reduce energy consumption and support intelligent, low-carbon manufacturing.

Technical Centre of Excellence (TCoE)

The Technical Centre of Excellence (TCoE) serves as a strategic hub for advancing the Companys transition towards digitally enabled, low-carbon and high-efficiency manufacturing. It drives improvements in reliability, productivity and process efficiency across operations through the deployment of best-in-class technologies, systems and engineering practices. In addition to operational optimisation, the TCoE supports new product development, provides technical due diligence for expansion projects and evaluates potential acquisition opportunities. Through these capabilities, it ensures that technological advancement, innovation and sustainability remain closely aligned with the Companys long-term growth strategy.

Pioneering Zero-Carbon Cement Technologies

ACCs parent company Ambuja Cements, part of the Adani Cement ecosystem, is taking a significant step towards decarbonisation through breakthrough technologies and global partnerships. In collaboration with Coolbrook, the Company will host the worlds first commercial-scale deployment of the RotoDynamic HeaterT (RDHT), addressing the carbon-intensive calcination stage with zero-carbon industrial heat powered by renewable energy. This initiative supports Adani Cements SBTi-validated net-zero ambition for 2050 and demonstrates the feasibility of electrified, low-emission cement manufacturing. The Company has also secured an Indo-Swedish grant to undertake

a Carbon Capture and Utilisation

(CCU) feasibility study with IIT

Bombay and Eco Tech, supported

by the Department of Science

and Technology and the Swedish

Energy Agency. The study will

assess pathways to capture CO 2

and convert it into value-added

products, reinforcing ACCs

commitment to climate leadership

and circular carbon solutions.

Air Emissions

ACC manages air emissions through strict regulatory compliance and advanced pollution control systems such as electrostatic precipitators, bag filters, enclosed conveyors and dust suppression measures. Continuous Emission Monitoring Systems track NOx, SOx and particulate matter in real time, while green belt development helps mitigate dust and noise, ensuring environmental accountability.

Water Stewardship

Water stewardship remains a key pillar of ACCs Sustainable Development 2030 agenda. Despite cement being a largely dry process, water used for cooling, dust suppression and domestic purposes is carefully managed. The Company has achieved water-positive status and is progressing towards a fivefold water-positivity target by 2030, supported by recycling systems, rainwater harvesting, mine-pit utilisation and community water conservation initiatives.

Waste Management and Circular Economy

ACC promotes responsible resource use through structured waste management and circular economy practices. Waste segregation, recycling and co-processing help minimise landfill disposal while increasing the use of waste-derived resources. Plastic waste, used oil and other materials are largely co-processed in cement kilns, while e-waste and hazardous waste are handled through authorised recyclers and treatment facilities, while mining overburden is repurposed for mine backfilling. Strengthening circularity further, ACC utilised 11.57 million tonnes of waste-derived resources during the year, including 0.45 million tonnes of alternative fuels and 11.12 million tonnes of waste-derived raw materials such as fly ash, gypsum and slag. This integrated approach conserves natural resources, supports blended cement production and advances long-term sustainability and decarbonisation goals.

Biodiversity Management

Biodiversity is a material priority for ACC, recognising the role of healthy ecosystems in climate resilience and ecological balance. Guided by its Biodiversity Policy, the Company follows a mitigation hierarchy of avoid, minimise, restore and offset, with regular monitoring across operations and partners. ACC is committed to No Net Deforestation through afforestation and aims to achieve No Net Loss of Biodiversity across all sites, progressing towards Net Positive Gain.

Adani Cement, comprising Ambuja Cements and ACC, became the first Indian cement company to

Biodiversity Action Plan

To address identified risks, ACC has implemented a Biodiversity Action Plan aligned with the IUCN (International Union for Conservation of Nature) mitigation hierarchy and nature-based solutions. Site-specific measures include greenbelt development, wildlife monitoring, rainwater harvesting and ecosystem restoration initiatives.

adopt the TNFD recommendations, strengthening its approach to identifying, assessing and disclosing nature-related risks and opportunities. A comprehensive Nature and Biodiversity Risk Assessment using the TNFD LEAP framework has been conducted within a 10 km radius of plants and mines, evaluating ecosystem dependencies and potential risks linked to natural capital.

Supported by strong on-ground action, including over 4.54 million till FY26 trees planted, 1.7x water positivity and biodiversity conservation initiatives, the Company continues to embed responsible resource management into core business decisions while advancing targets for green cement, AFR and renewable energy targets.

Biodiversity Risk Assessment

ACCs operations depend on natural capital such as minerals and water, as well as ecosystem services including climate and water regulation. Using the TNFD LEAP framework, the Company mapped nature interfaces, assessed dependencies and identified potential risks such as extreme weather events, ecosystem degradation and regulatory changes.

Biodiversity Protection and Enhancement Measures

ACC complies with environmental regulations including the Forest Conservation Act and CAMPA (Compensatory Afforestation Fund Act), supported by compensatory afforestation and structured mine closure plans. The Company has planted over 4.54 million trees against a target of 5 million by 2030, alongside habitat restoration and environmental protection measures. Employee training and stakeholder awareness initiatives further reinforce biodiversity stewardship.

Sustainable Construction

ACC remains focused on reducing its carbon footprint while enhancing product performance and delivering on its brand promise. The Company develops solutions that help customers lower environmental impact, improve construction quality and optimise lifecycle costs. During the year, ACC strengthened its sustainable portfolio with offerings under ACC Certified Technology, including Instant Concrete Mix

Proportion and Modular Curing solutions, and introduced Compocem Cement at its Kudithini plant. These innovations advance greener construction practices, enhance execution efficiency and support resource optimisation, reinforcing ACCs commitment to sustainable and performance-led construction.

Regulatory Compliance

ACC upholds strict regulatory compliance as a foundation of responsible operations, adhering to all applicable environmental laws and securing required statutory approvals. Compliance is monitored through the Legatrix software, ensuring transparency and accountability. Key regulations include Environmental Clearances, the Water and Air (Prevention and Control of Pollution) Acts, the Environment (Protection) Act and applicable waste management rules.

ASCENT: Institutionalising Sustainable Growth

Adani Cements ASCENT framework establishes a structured, enterprise-wide approach to strengthening environmental performance, governance and data-driven decision-making. By embedding sustainability, circularity and innovation into core strategy, ASCENT enables responsible, resilient and future-ready growth aligned with Indias Viksit Bharat 2047 vision.

Sales Volume

In FY 2025-26, ACCs Cement sales volume recorded strong growth, reaching 43.9 million tonnes as compared to 39.0 million tonnes in FY 2024-25. Individual Home Builders and ground-plus-three (G+3) residential projects continued to represent the largest retail segments, contributing significantly to both volumes and profitability. During the year, the Company intensified its focus on enhancing the share of premium products within its portfolio. This was supported by improved affordability following the Governments rationalisation of GST rates, targeted brand-building initiatives and deeper engagement with influencers through dedicated technical teams. This momentum is expected to continue over the medium term, supported by structural demand drivers, while remaining subject to near-term variability.

Market Development and Distribution Strength

ACC is supported by a strong pan-India distribution network of approximately 15,000 channel partners and 40,000 retailers and sub-dealers, contributing nearly 55% of total cement sales through the retail segment. This extensive reach enables the Company to effectively meet Indias growing demand for quality cement and building materials.

40,000

Retailers and sub-dealers part of the pan-India distribution network

Leveraging deep market insights, ACCs Sales and Marketing teams continuously refine product mix and optimise capacity utilisation while enhancing supply chain efficiency through active dealer engagement. In line with its sustainability strategy, the Company is progressively reducing the share of OPC in its portfolio and strengthening its blended cement offerings. Strategic expansion of the channel network and increased wallet share per counter in key markets have further deepened retail penetration and strengthened customer connect. Region-specific, value-added solutions and calibrated enhancements to market-facing infrastructure further strengthened customer experience and elevated brand visibility. Going forward, the Company will maintain a sustained focus on premium and solution-oriented offerings, underpinned by disciplined cost management and integration synergies across the cement business and the broader Group platform, to drive stable profitability and improved returns.

ACCs Products and Solutions

Adani ACC Gold Water Shield

A part of ACCs premium portfolio, Adani ACC Gold Water Shield is recognised for its superior water-repellent properties, enhanced durability and long-lasting protection. Positioned at the top end of the Companys product range, it commands a strong premium and is supported by integrated brand visibility across outdoor, in-shop and digital platforms, along with technical service engagement at site. The product is among the select ACC offerings listed in GRIHA (Green Rating for Integrated Habitat Assessment) green product catalogue, reinforcing its sustainable credentials.

Ready-Mix Concrete (RMX)

Adani ACCs Ready-Mix Concrete business operates a nationwide network of 117 technologically advanced plants across 42 cities, playing a vital role in Indias urban and infrastructure development. With over three decades of expertise, Adani ACC Concrete combines innovation, service excellence and sustainability, supported by GRIHA-certified practices. The business continues to expand capacity, commissioning new plants and strengthening its footprint, particularly in the captive and infrastructure segments. Value-added solutions such as Adani ACC Feathercrete, alongside digital-enabled customer interfaces, technical training and quality-focused initiatives, reinforce Adani ACC Concretes leadership in delivering high-performance, sustainable construction solutions.

RMX Business Performance
Particulars	Unit	FY 2025-26	FY 2024-25
Sales Volume	lakh m 3	38.5	28.6
Revenue from Operations	C crore	1,936	1,382
EBITDA	D crore	300	188
EBITDA margin	%	15.5	13.6

Value-added and Green Solutions

ACCs advanced R&D capabilities continue to drive innovation, enabling the development of value-added solutions tailored to evolving construction needs. These specialised offerings contribute 36% of total RMX sales and remain a key growth lever for the business. Flagship products such as Adani ECOMaxX, ACC Coolcrete and ACC

Bagcrete have strengthened the Companys differentiated portfolio across infrastructure and urban construction segments.

Adani ECOMaxX, the Companys green concrete solution, is engineered to support sustainable

construction by reducing CO 2

emissions by 30-70%. Certified under GreenPro and recognised by the Indian Green Building Council (IGBC), it currently accounts for 9% of total RMX sales. The Company continues to build sales capability, enhance value communication and deepen engagement with consultants and nodal agencies to scale adoption of green solutions.

Business Performance (Consolidated)
Particulars	FY 2025-26	FY 2024-25
Sales Volume Cement (MMT)	43.9	39.0
Revenue from operations (D crore)	25,962	21,920*
Operating EBITDA (D crore)	2,950.2	3,061
Operating EBITDA Margin (%)	11.4	14.0

*Regrouped, refer Note 66 of Consolidated Financial Statement

Key Financial Ratios (Standalone)
Particulars	FY 2025-26	FY 2024-25
Operating EBITDA Margin (%)	11.3	13.8
Net Profit Margin (%)	9.2	11.7
Return on Net Worth (%)	11.2	13.3
Net Worth (D crore)	20,416	18,271
Net Debt Equity Ratio	NA	NA
Debtors Turnover (Times)	10.3	20.6
Inventory Turnover (Times)	8.6	6.7
Debt Service Coverage Ratio (Times)	15.3	4.4

Cost Efficiency in Cement Business

During FY 2025-26, ACC implemented several targeted cost management strategies, including:

Cost of Materials Consumed

Raw material costs reduced by 1% per tonne of cement year-on-year during the year. To enhance cost efficiency, ACC strengthened long-term tie-ups for key raw materials, optimised the clinker factor and expanded the use of wet fly ash across plants. These measures supported cost moderation while reinforcing sustainability objectives. Margins remained impacted by input cost volatility and pricing dynamics, particularly in the latter part of the year, underscoring the importance of ongoing cost optimisation initiatives.

Power and Fuel

Lower coal prices and a higher share of green power contributed to reduced power and fuel costs by 7% during the year. The green power mix increased by 12 pp to 30%. Kiln fuel cost at I 1.61 per thousand kilocalories. The Company continues to optimise its energy mix, increase captive and alternative fuel usage, and enhance sourcing efficiency to drive sustainable cost savings.

Freight and Forwarding Expenses

ACC witnessed a marginal increase in freight and forwarding expenses. Cost will be optimised further by reducing lead due to increased footprints, improving dispatch efficiency, rationalising warehousing, maximising direct dispatches, negotiating competitive freight rates and reducing lead distances. Increased adoption of multimodal logistics through rail and sea transport, along with higher volumes under Master Supply Agreements, further supported savings. The Company remains focused on digital supply chain integration and network optimisation to sustain long-term efficiency gains.

Master Supply Agreement (MSA)

ACC Limited maintains a Master Supply Agreement (MSA) with its parent company, Ambuja Cements Limited (ACL), and fellow subsidiaries including Asian Fine Cement Private Limited and Adani Cement Industries Limited (ACIL). These agreements establish a structured system for the movement of cement, clinker and other materials among group companies, facilitating efficient inter-company transactions. During FY 2025-26, the Company sold 11.6 million tonnes of Cement and Clinker (CLC) under this arrangement, underscoring the significance and scale of this integrated supply network.

The current year marked a further enhancement of this collaborative ecosystem with the introduction of a new MSA involving Orient Cement Limited (OCL) with ACCs parent company Ambuja Cements.

This agreement reinforces intragroup collaboration within the Adani portfolio, enabling reciprocal sourcing of specified materials and services. The agreement is governed by transparent pricing mechanisms, clearly defined operational parameters and arms length principles, with all requisite related-party approvals in place.

The framework permits either party to function as manufacturer or procurer, thereby optimising capacity utilisation, enhancing network efficiencies and facilitating agile allocation of cement, clinker, fly ash, coal and other critical inputs. Cement supplied under this arrangement is marketed under the procuring entitys brand, preserving brand distinctiveness while leveraging shared operational infrastructure and resources.

Collectively, such MSAs deepen synergies across business operations, unlock structural cost efficiencies and promote environmentally responsible resource utilisation. The Company remains committed to strengthening these collaborative models, aiming to enhance competitiveness, resilience and long-term sustainable value creation.

Capacity Expansion

Adani Cement has raised its FY 2026-27 target capacity to 119 MTPA in a structured and phased manner. ACCs parent company, Ambuja Cements accelerated its capacity expansion programme in FY 2025-26, with consolidated cement capacity reaching 109 MTPA during the year.

Customer Engagement and Relationship

ACC remains focused on addressing the needs of Individual Home Builders while promoting sustainable construction practices. Recognising the significant investment made by IHBs, the Company supports their construction journey through quality materials, sound construction methods and access to skilled professionals. GRIHA-certified products and on-site sustainable solutions enhance build quality and ensure a seamless customer experience.

ACC Certified Technology (ACT)

ACC Certified Technology is an integrated, customer-centric platform that connects dealers, influencers and individual home builders (IHBs) with specialised products, technical guidance and trained contractors. Designed for IHBs and small project builders (SPBs), ACT combines men, materials and methods to ensure proper construction practices and durable outcomes. Through its Identify, Enrol, Acquire and Retain (IEAR) engagement model, ACC strengthened customer relationships, with ACT implemented at over 64,854 sites during the year.

Instant Concrete Mix Proportion

The instant mix proportioning solution optimises aggregates, sand and water usage based on material properties, improving concrete strength and durability. During the year, the solution was enhanced at 47,850 customer sites.

Modular Curing Solution

ACCs Zero Water Curing solution enables efficient slab curing without water usage. During the year, 3,040 of the solutions were given across construction sites, conserving water.

Slab Supervision

ACCs technical experts provided on-site slab casting guidance across various customer locations, reinforcing construction quality and reliability.

Influencer Engagement and Relationship

Knowledge Sharing Initiative

ACC continues to engage architects and engineers through a nationwide knowledge-sharing platform that promotes sustainable construction practices and advanced building materials. Through in-person and virtual sessions, more than 4,500 professionals participated in diverse technical and knowledge-led engagements during the year, strengthening industry capability and awareness.

4,500+

Professionals participated in diverse knowledge sharing activities

Executive Excellence Programme (EEP)

Recognising the pivotal role of the engineering and architectural fraternity in nation-building, ACC, in collaboration with Ambuja Cements Limited and IIT Kanpur, introduced the Executive Excellence Programme. This four-day residential certification course, curated by IIT faculty, is designed to deepen technical expertise and equip professionals with advanced industry insights and contemporary best practices.

Celebration of Engineers Day

Engineering is not merely about structures or materials, but about transforming ideas into enduring impact. On Engineers Day, ACC celebrates the ingenuity, discipline and resilience of engineers who power progress across infrastructure, manufacturing and sustainable innovation. From landmark national projects to everyday homes, their commitment to precision, safety and continuous improvement ensures that every solution is built to last while remaining accountable to future generations. At ACC, engineering excellence drives operational strength, low-carbon advancement and nation-building momentum. This Engineers Day, the Company honours engineers as the true architects of progress, shaping a stronger, more sustainable India with every milestone achieved.

Rewards Connect Initiative

ACCs contractor loyalty programme, now powered by the upgraded Rewards Connect initiative, is designed to recognise, strengthen and enrich long-term partnerships with influencers. By promoting ACC Certified Technology and quality construction practices, the platform incentivises contractors while supporting their professional growth. Over 3,82,368 lakh contractors are enrolled, benefiting from structured rewards, engagement initiatives and development opportunities.

Channel Partner and Contractor Engagement

Customer-centric engagement remains central to ACCs approach. The Company conducts structured contractor and channel partner meets across India, recognising contributions through standardised appreciation platforms and impactful on-ground initiatives. These programmes strengthen relationships, foster loyalty and reinforce a performance-driven partner ecosystem.

Dhanvarsha

ACC benefited from Adani Cements launch of Dhanvarsha - Gruhalaxmi Soubhagya Awards, a digitally enabled, pan-India initiative recognising dealers and their families. With participation from 50,000+ stakeholders and 10,000+ families, the programme strengthened emotional connect, rewarded performance transparently and set a new benchmark in stakeholder engagement.

CEO Club

ACCs CEO Club engaged around 245 high-performing dealers achieving record monthly sales average. The platform combined strategic dialogue with formal recognition, aligning business priorities, addressing channel feedback and celebrating record sales achievements to deepen collaboration across the dealer network.

Digitalisation and Innovation

Driven by its RESQ philosophy - Reliability, Efficiency, Sustainability and Quality, the Companys digital strategy is centred on three priorities: modernising core platforms, transforming processes for scalable growth and building future-ready intelligent systems. This evolving approach reflects the shift from digital as a business enabler to digital at the core of the business, enabling decisions, processes and operations to become increasingly data-driven, agile and resource-efficient.

Pillar 1: Reimagining and Reengineering the Core

The Company continued to strengthen its digital foundation through the development of an AI-first, cloud-native ecosystem designed to support scale, agility and intelligent decision-making. Platforms such as the Adani Ambuja Intelligence Platform and CiNOC are enabling enterprise-wide integration of ERP, IoT, analytics and fleet systems to enhance operational visibility and decision efficiency. A standardised ERP backbone and software-defined network architecture are further improving resilience, operational consistency and financial governance. Simultaneously, the Company reinforced digital trust and cyber resilience through a comprehensive OT cybersecurity framework covering asset visibility, risk monitoring and automated recovery systems, supported by ISO 27001 certification.

Pillar 2: Strategic Differentiation at Scale

The Company continued to leverage digital technologies to improve operational efficiency, responsiveness and customer