The Ramco Cements Reports Q1 FY27 Results; Net Revenue Rises 10% Amid Margin Pressure from Rising Costs

The Ramco Cements Reports Q1 FY27 Results; Net Revenue Rises 10% Amid Margin Pressure from Rising Costs​

The Ramco Cements Limited released its standalone unaudited results for the first quarter of Fiscal Year 2027 (Q1 FY27), reporting a 10% year-on-year rise in net revenue despite challenges related to increased input costs and geopolitical disruptions.

The company saw cement sale volume reach 4.48 million tons in Q1 FY27, up from 4 million tons in the corresponding period of Q1 FY26. This growth occurred while capacity utilization stood at 70%, compared to 68% during Q1 FY26. The construction chemicals segment also performed well, registering a sales volume of 1.35 lakh tons for Q1 FY27, which is an increase from 1.20 lakh tons in Q1 FY26.

Financial Performance Overview​

While net revenue grew by 10% to Rs. 2,276 crores in Q1 FY27 (up from Rs. 2,077 crores in Q1 FY26), the company’s profitability metrics saw a decline due to increased costs of fuel and packing materials. EBITDA for Q1 FY27 was Rs. 314 crores, marking a 22% drop compared to Rs. 404 crores recorded in Q1 FY26. Consequently, the blended EBITDA per ton decreased to Rs. 681 from Rs. 981 in Q1 FY26, and the EBITDA ratio stood at 14%, down from 19% in Q1 FY26.

Cost and Operational Efficiencies​

A major factor impacting the results was the escalation in power and fuel costs, which rose to Rs. 1,326 per ton in Q1 FY27 from Rs. 1,222 per ton in Q1 FY26. This increase was primarily attributed to escalated imported fuel costs arising from geopolitical disruptions in West Asia, which affected global fuel markets and freight rates.

The company noted that the blended fuel consumption per ton for cement stood at $127 (Cost per Kcal: Rs. 1.85) in Q1 FY27, compared to $126 (Cost per Kcal: Rs. 1.55) during Q1 FY26. The fuel cost for the quarter was negatively affected by an 11% year-on-year decline in rupee valuation.

Operational efficiencies improved slightly in green energy usage, which increased from 31% in Q1 FY26 to 37% in Q1 FY27, following the addition of WHRS capacity at RR Nagar during the previous year. However, other costs rose significantly; domestic diesel prices increased by 4% YoY, while polymer prices jumped by 40% YoY, impacting packing and forwarding expenses.

Financial Status and Asset Management​

The company’s interest cost reduced from Rs. 105 crores in Q1 FY26 to Rs. 96 crores in Q1 FY27, benefiting from repo rate cuts and loan repayments made during the previous year. Depreciation for Q1 FY27 was reported at Rs. 190 crores, an increase from Rs. 183 crores in Q1 FY26, following the commissioning of facilities including WHRS at RR Nagar and Railway Siding at Kolimigundala during FY26.

Profit before tax (PBT) for Q1 FY27 was reported as Rs. 42 crores, down from Rs. 116 crores in Q1 FY26. This figure includes exceptional items, such as a profit of Rs. 13 crores earned from the sale of surplus lands during Q1 FY27.

In terms of asset management, the company had monetized Rs. 1,098 crores through the sale of non-core assets over the preceding two years up to March 2026. During Q1 FY27, the company realized Rs. 24 crores from the remaining identified non-core assets, which are valued at approximately Rs. 150 crores.

As of June 30, 2026, total debt stood at Rs. 4,007 crores, an increase from Rs. 3,852 crores as of March 31, 2026. The cost of debt for Q1 FY27 was reported at 7.03%, down from 7.64% in Q1 FY26.

A specific operational expense noted is the mineral bearing land tax levied in Tamil Nadu at Rs. 160 per ton of limestone, which resulted in a variable cost impact of Rs. 39 crores (equivalent to Rs. 84 per ton) for the company in Q1 FY27.

RAMCOCEM Stock Price Movement​

On Friday, shares of The Ramco Cements Limited slipped by 1.82%, settling at ₹933.80 after a sluggish trading session. The stock saw wide intraday movement, finding a low near ₹914.85 and hitting a high of ₹944.00 amid 221,192 shares traded.