Motilal Oswal's research report on ACC
ACC reported a strong EBITDA growth of ~91% YoY to INR8.2b in 2QFY26 (37% above our estimate, led by higher volume and lower opex/t vs. our estimate). EBITDA/t increased ~59%/8% YoY/QoQ to INR732 (vs. est. INR585). OPM up 4.7pp YoY to ~14% (est. ~11%). PAT (adjusted for tax reversal and interest income) increased ~37% YoY to INR3.2b (~3% above estimates driven by lower other income and higher tax provisioning).
Outlook
We continue to believe that the Adani group will have a single listed cement entity, eventually leading to the merger of ACC and ACEM. Hence, the consolidated financials of ACEM reflect a clear picture of the group's cement business performance. We value the stock at 8x Sep’27E EV/EBITDA to arrive at our TP of INR2,040. Reiterate Neutral.
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