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What is the story about?
Ramco Cements Ltd on Friday (May 22) reported a consolidated net profit of ₹146.39 crore in the fourth quarter, much higher than the CNBC-TV18 poll estimate of ₹92 crore.
Revenue stood at ₹2,606 crore versus ₹2,599 crore estimated in the poll. EBITDA came in lower than expected at ₹372.8 crore versus the poll’s ₹409-crore estimate, while the margin was at 14.3% against the projected 15.74%.
On a year-on-year basis, net profit surged about 372% to ₹146.4 crore versus ₹31 crore in the same period last year. Revenue grew 9% to ₹2,606 crore from ₹2,392 crore, while EBITDA rose 16.2% to ₹373 crore from ₹321 crore. The margin improved slightly to 14.3% versus 13.4% year-on-year.
The company reported exceptional items of ₹74.2 crore during the quarter.
ALSO READ | Ramco Cements sells non-core assets worth ₹515 crore to Prestige Estates, steps up debt reduction
Operational Performance
During FY26, Ramco Cements’ total sale volume, including construction chemicals, stood at 18.81 million tonnes compared with 18.50 million tonnes in FY25, registering a marginal growth of 2%. Cement capacity utilisation declined to 74% from 77% in FY25 following the addition of 2 MTPA capacity in February 2026.
Net revenue for FY26 rose 6% to ₹9,056 crore from ₹8,539 crore in FY25, aided by around 4% year-on-year improvement in prices. Cement revenue increased 5%, while revenue from construction chemicals grew 66%. The company said it continues to focus on offering the right products for the right applications to strengthen its brands.
EBITDA for FY26 stood at ₹1,482 crore compared with ₹1,276 crore in FY25, marking a growth of 16%. Blended EBITDA per tonne improved to ₹788 from ₹690 in FY25, while the operating profit ratio rose to 16% from 15%.
Cost and Fuel
Cost of raw materials per tonne for FY26 increased 7% to ₹1,023 from ₹956 in FY25. The increase was mainly due to the levy of mineral-bearing land tax (MBLT) of ₹160 per tonne of limestone in Tamil Nadu from April 2025, translating into an impact of around ₹86 per tonne of cement in variable cost.
The company said Tamil Nadu is the only state where such a levy has been imposed and added that representations have been made to the state government seeking a reduction of the levy.
Also Read: Price recovery may lift cement margins in June quarter, but volumes remain weak
Blended fuel consumption per tonne during FY26 was equivalent to $124, with cost per Kcal at ₹1.59, compared with $127 and ₹1.53 respectively in FY25. Power and fuel cost per tonne of cement declined to ₹1,098 from ₹1,123 in FY25.
The petcoke mix for FY26 stood at 47% compared with 63% in FY25. Green power usage increased to 40% from 36% in FY25. The company said higher wind power generation during the year helped manage overall power and fuel costs.
All green power assets are fully owned by the company or its wholly-owned subsidiary, with no dependence on group captive or third-party ownership. Current spot CIF prices of petcoke are around $150-$160. The clinker conversion ratio improved marginally to 1.43 in FY26 from 1.42 in FY25, helping manage costs.
Interest cost for FY26 declined to ₹419 crore from ₹459 crore in FY25 due to repo rate cuts and repayment of borrowings during the year.
Depreciation for FY26 increased to ₹736 crore from ₹691 crore in FY25 following the commissioning of facilities, including waste heat recovery systems at RR Nagar and railway siding at Kolimigundala. Profit before exceptional items and tax rose to ₹326 crore in FY26 from ₹126 crore in FY25.
Also Read:Cement sector set for strong profit growth in Q2 of FY26, but volume trends stay soft
The company earned a profit of ₹574 crore during FY26 from the sale of surplus land, recognised under exceptional items. It also expensed ₹20 crore towards past service cost for gratuity and compensated absences under exceptional items following changes in the definition of wages under the new labour codes, 2025.
Net exceptional items for FY26 stood at ₹553 crore compared with ₹340 crore in FY25. Profit before tax after 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 plans to achieve a cement capacity of around 31 MTPA in FY27 through debottlenecking of existing integrated units and brownfield expansion at Kolimigundala. Waste heat recovery system capacity of 15 MW is expected to be commissioned at Kolimigundala along with Kiln Line-2 during FY27.
During FY26, the company incurred ₹997 crore towards capex, including maintenance capex. Capex guidance for FY27 is estimated at ₹800 crore.
Also Read: Ramco Cements Q4 net profit slumps 75% to ₹31 crore, declares dividend; misses estimatesDebt Position
Net debt stood at ₹3,664 crore as on March 31, 2026, compared with ₹4,481 crore as on March 31, 2025. During FY26, the company reduced net debt by ₹817 crore. Cost of debt for FY26 declined to 7.29% from 7.90% in FY25. Net debt-to-EBITDA ratio improved to 2.47 times from 3.51 times in FY25.
The board of directors has recommended a dividend of ₹2.50 per share of ₹1 each for the year ended March 31, 2026. The dividend, if approved at the ensuing annual general meeting, will be paid within 30 days of the declaration.
Shares of Ramco Cements Ltd ended at ₹914.15, up by ₹7.20, or 0.79%, on the BSE today, May 22.
ALSO READ | Ramco Cements shares slide 5% after downgrade, target cut on weak Q3
Revenue stood at ₹2,606 crore versus ₹2,599 crore estimated in the poll. EBITDA came in lower than expected at ₹372.8 crore versus the poll’s ₹409-crore estimate, while the margin was at 14.3% against the projected 15.74%.
On a year-on-year basis, net profit surged about 372% to ₹146.4 crore versus ₹31 crore in the same period last year. Revenue grew 9% to ₹2,606 crore from ₹2,392 crore, while EBITDA rose 16.2% to ₹373 crore from ₹321 crore. The margin improved slightly to 14.3% versus 13.4% year-on-year.
The company reported exceptional items of ₹74.2 crore during the quarter.
ALSO READ | Ramco Cements sells non-core assets worth ₹515 crore to Prestige Estates, steps up debt reduction
Operational Performance
During FY26, Ramco Cements’ total sale volume, including construction chemicals, stood at 18.81 million tonnes compared with 18.50 million tonnes in FY25, registering a marginal growth of 2%. Cement capacity utilisation declined to 74% from 77% in FY25 following the addition of 2 MTPA capacity in February 2026.
Net revenue for FY26 rose 6% to ₹9,056 crore from ₹8,539 crore in FY25, aided by around 4% year-on-year improvement in prices. Cement revenue increased 5%, while revenue from construction chemicals grew 66%. The company said it continues to focus on offering the right products for the right applications to strengthen its brands.
EBITDA for FY26 stood at ₹1,482 crore compared with ₹1,276 crore in FY25, marking a growth of 16%. Blended EBITDA per tonne improved to ₹788 from ₹690 in FY25, while the operating profit ratio rose to 16% from 15%.
Cost and Fuel
Cost of raw materials per tonne for FY26 increased 7% to ₹1,023 from ₹956 in FY25. The increase was mainly due to the levy of mineral-bearing land tax (MBLT) of ₹160 per tonne of limestone in Tamil Nadu from April 2025, translating into an impact of around ₹86 per tonne of cement in variable cost.
The company said Tamil Nadu is the only state where such a levy has been imposed and added that representations have been made to the state government seeking a reduction of the levy.
Also Read: Price recovery may lift cement margins in June quarter, but volumes remain weak
Blended fuel consumption per tonne during FY26 was equivalent to $124, with cost per Kcal at ₹1.59, compared with $127 and ₹1.53 respectively in FY25. Power and fuel cost per tonne of cement declined to ₹1,098 from ₹1,123 in FY25.
The petcoke mix for FY26 stood at 47% compared with 63% in FY25. Green power usage increased to 40% from 36% in FY25. The company said higher wind power generation during the year helped manage overall power and fuel costs.
All green power assets are fully owned by the company or its wholly-owned subsidiary, with no dependence on group captive or third-party ownership. Current spot CIF prices of petcoke are around $150-$160. The clinker conversion ratio improved marginally to 1.43 in FY26 from 1.42 in FY25, helping manage costs.
Interest cost for FY26 declined to ₹419 crore from ₹459 crore in FY25 due to repo rate cuts and repayment of borrowings during the year.
Depreciation for FY26 increased to ₹736 crore from ₹691 crore in FY25 following the commissioning of facilities, including waste heat recovery systems at RR Nagar and railway siding at Kolimigundala. Profit before exceptional items and tax rose to ₹326 crore in FY26 from ₹126 crore in FY25.
Also Read:Cement sector set for strong profit growth in Q2 of FY26, but volume trends stay soft
The company earned a profit of ₹574 crore during FY26 from the sale of surplus land, recognised under exceptional items. It also expensed ₹20 crore towards past service cost for gratuity and compensated absences under exceptional items following changes in the definition of wages under the new labour codes, 2025.
Net exceptional items for FY26 stood at ₹553 crore compared with ₹340 crore in FY25. Profit before tax after 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 plans to achieve a cement capacity of around 31 MTPA in FY27 through debottlenecking of existing integrated units and brownfield expansion at Kolimigundala. Waste heat recovery system capacity of 15 MW is expected to be commissioned at Kolimigundala along with Kiln Line-2 during FY27.
During FY26, the company incurred ₹997 crore towards capex, including maintenance capex. Capex guidance for FY27 is estimated at ₹800 crore.
Also Read: Ramco Cements Q4 net profit slumps 75% to ₹31 crore, declares dividend; misses estimatesDebt Position
Net debt stood at ₹3,664 crore as on March 31, 2026, compared with ₹4,481 crore as on March 31, 2025. During FY26, the company reduced net debt by ₹817 crore. Cost of debt for FY26 declined to 7.29% from 7.90% in FY25. Net debt-to-EBITDA ratio improved to 2.47 times from 3.51 times in FY25.
The board of directors has recommended a dividend of ₹2.50 per share of ₹1 each for the year ended March 31, 2026. The dividend, if approved at the ensuing annual general meeting, will be paid within 30 days of the declaration.
Shares of Ramco Cements Ltd ended at ₹914.15, up by ₹7.20, or 0.79%, on the BSE today, May 22.
ALSO READ | Ramco Cements shares slide 5% after downgrade, target cut on weak Q3
