Revenue reached ₹2,606 crore, slightly higher than the estimated ₹2,599 crore. However, EBITDA fell short of expectations at ₹372.8 crore compared to the poll’s estimate of ₹409 crore, with a margin of 14.3% versus the projected 15.74%.
On a year-over-year basis, net profit soared approximately 372% to ₹146.4 crore, up from ₹31 crore in the same quarter last year. Revenue increased by 9% to ₹2,606 crore from ₹2,392 crore, while EBITDA climbed 16.2% to ₹373 crore from ₹321 crore. The margin also saw a slight improvement, rising to 14.3% from 13.4% year-on-year.
The company recorded exceptional items totaling ₹74.2 crore for the quarter.
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Operational performance
For FY26, Ramco Cements reported total sales volume, including construction chemicals, of 18.81 million tonnes, compared to 18.50 million tonnes in FY25, marking a slight growth of 2%. Cement capacity utilization decreased to 74% from 77% in FY25, attributed to an additional 2 MTPA capacity introduced in February 2026.
Net revenue for FY26 increased by 6% to ₹9,056 crore from ₹8,539 crore in FY25, supported by about a 4% year-on-year rise in prices. Cement revenue saw a 5% increase, while revenue from construction chemicals surged by 66%. The company emphasizes a strategy of providing optimal products for specific applications to strengthen its market position.
EBITDA for FY26 stood at ₹1,482 crore, a rise from ₹1,276 crore in FY25, reflecting a growth of 16%. Blended EBITDA per tonne improved to ₹788 from ₹690 in FY25, while the operating profit ratio increased to 16% from 15%.
Cost and fuel
The raw material cost per tonne for FY26 grew by 7% to ₹1,023 from ₹956 in FY25, primarily due to the imposition of a mineral-bearing land tax (MBLT) of ₹160 per tonne of limestone in Tamil Nadu starting April 2025, which translates to an impact of approximately ₹86 per tonne of cement in variable costs.
The company noted that Tamil Nadu is the sole state implementing such a levy and highlighted its representations to the state government for a reduction.
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Blended fuel consumption per tonne in FY26 equated to $124, with costs per Kcal at ₹1.59, compared to $127 and ₹1.53 respectively in FY25. Power and fuel costs per tonne of cement decreased to ₹1,098 from ₹1,123 in FY25.
The percentage of petcoke mix for FY26 was 47%, down from 63% in FY25. Green power utilization increased to 40% from 36% in FY25, with the enhanced wind power generation during the year aiding in managing overall power and fuel expenses.
All green power assets are fully owned by the company or its wholly-owned subsidiary, eliminating reliance on group captive or third-party ownership. Current spot CIF prices for petcoke range from $150 to $160. The clinker conversion ratio slightly improved to 1.43 in FY26 from 1.42 in FY25, helping with cost management.
Interest costs for FY26 decreased to ₹419 crore from ₹459 crore in FY25, owing to repo rate reductions and loan repayments throughout the year.
Depreciation for FY26 rose to ₹736 crore from ₹691 crore in FY25, following the commissioning of facilities, including waste heat recovery systems at RR Nagar and railway sidings at Kolimigundala. Profit before exceptional items and tax escalated to ₹326 crore in FY26 from ₹126 crore in FY25.
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The company recorded a profit of ₹574 crore in FY26 from the sale of surplus land, categorized under exceptional items. Additionally, it expensed ₹20 crore related to past service costs for gratuity and compensated absences, also noted under exceptional items due to amendments in the definition of wages under the new labour codes of 2025.
Net exceptional items for FY26 amounted to ₹553 crore, compared to ₹340 crore in FY25. Profit before tax, after accounting for exceptional items, rose to ₹879 crore from ₹466 crore in FY25, while profit after tax increased to ₹694 crore from ₹417 crore.
Capex and expansion plans
The company aims to reach a cement capacity of approximately 31 MTPA in FY27 through debottlenecking existing integrated units and brownfield expansion at Kolimigundala. A waste heat recovery system with a capacity of 15 MW is anticipated to be commissioned at Kolimigundala alongside Kiln Line-2 during FY27.
In FY26, the company allocated ₹997 crore for capex, including maintenance expenditures. The capex guidance for FY27 is projected at ₹800 crore.
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Debt position
Net debt was recorded at ₹3,664 crore as of March 31, 2026, down from ₹4,481 crore on March 31, 2025. Throughout FY26, the company reduced net debt by ₹817 crore. The cost of debt for FY26 fell to 7.29% from 7.90% in FY25. The net debt-to-EBITDA ratio improved to 2.47 times from 3.51 times in FY25.
The board of directors has proposed a dividend of ₹2.50 per share of ₹1 each for the fiscal year ending March 31, 2026. If approved at the upcoming annual general meeting, the dividend will be disbursed within 30 days of declaration.
Shares of Ramco Cements Ltd closed at ₹914.15, rising by ₹7.20, or 0.79%, on the BSE on May 22.
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