The Ramco Cements Reports Standalone Audited Results for FY26

The Ramco Cements Reports Standalone Audited Results for FY26​

The Ramco Cements Limited announced its standalone audited results for the fiscal year 2026. The company reported a net revenue of Rs. 9,056 crores for FY26, marking a 6% growth compared to Rs. 8,539 crores recorded during FY25.

For FY26, the total sale volume, including construction chemicals, reached 18.81 million tons, a marginal growth of 2% over the 18.50 million tons recorded in FY25. Although cement capacity utilization slightly decreased to 74% in FY26 from 77% in FY25, this was attributed to the increase in capacity by 2 MTPA during February 2026.

Key Financial Highlights for FY26​

The company’s performance showed significant growth in key operating metrics. EBITDA for FY26 stood at Rs. 1,482 crores, a 16% increase from Rs. 1,276 crores in FY25. The blended EBITDA per ton improved to Rs. 788/-, up from Rs. 690/- during FY25. The operating profit ratio for FY26 was 16%, compared to 15% in FY25.

Net revenue growth was supported by an improvement in prices of around 4% year over year. While cement revenue grew by 5%, the revenue generated from construction chemicals saw a substantial increase of 66%.

The financial performance metrics for the two fiscal years are detailed below:

Operational Inputs and Costs​

Cost of raw materials per ton increased by 7% in FY26, rising from Rs. 956/- in FY25 to Rs. 1,023/- in FY26. This rise was primarily due to the levy of a mineral bearing land tax (MBLT) of Rs. 160 per ton of limestone in Tamil Nadu starting from April 2025.

In terms of energy and fuel usage, the blended fuel consumption per ton in FY26 was equivalent to $124 (Cost per Kcal: Rs. 1.59), compared to $127 (Cost per Kcal: Rs. 1.53) during FY25. The power and fuel cost per ton of cement declined from Rs. 1,123/- in FY25 to Rs. 1,098/- in FY26. The utilization of green power share increased from 36% in FY25 to 40% in FY26, benefiting from high wind power generation throughout the year.

Interest cost saw a reduction from Rs. 459 crores in FY25 to Rs. 419 crores in FY26, influenced by repo rate cuts and debt repayment. Profit before exceptional items and tax for FY26 reached Rs. 326 crores, significantly higher than the Rs. 126 crores recorded in FY25. The company recognized a profit of Rs. 574 crores in FY26 from the sale of surplus lands, which is included under exceptional items.

CAPEX, Debt, and Dividends​

The company incurred Rs. 997 crores towards capital expenditure in FY26, which included maintenance capex. The capex guidance for FY27 is estimated to be Rs. 800 crores.

Regarding debt management, net debt stood at Rs. 3,664 crores as of March 31, 2026, reduced from Rs. 4,481 crores as at March 31, 2025. This reduction of Rs. 817 crores resulted in the net debt to EBITDA ratio standing at 2.47 times in FY26, compared to 3.51 times during FY25.

The company proposed a dividend of Rs. 2.50/- per equity share of a face value of Re. 1/each for FY26.

Outlook for FY27​

The company provided an outlook for FY27, noting that India's real GDP grew 7.6% in FY26, with the growth projected at 6.9% for FY27. Cement demand is expected to grow 6-7%, aligning with the projected GDP growth. Key demand drivers include the Union budget's Rs. 12.2 lakh crores capex outlay and strong rural incomes.

The company noted potential cost pressures for the coming year, including increases in pet coke and gypsum prices, which could impact costs by approximately Rs. 400 per ton of cement. Polymer price increases are expected to raise packing material costs by about Rs. 120 per ton. Additionally, the diesel price increase of Rs. 4 per liter with effect from May 19, 2026, could impact logistics costs by about Rs. 50 per ton.

Cement prices in April 2026 improved by Rs. 15 per bag in the trade segment and Rs. 25 per bag in the non-trade segment over the March 2026 exit price. While the company anticipates further improvements, prices currently remain under pressure due to competitive intensity.

RAMCOCEM Stock Price Movement​

On Friday, The Ramco Cements Limited shares edged higher, settling at ₹914.55, which represented a strong 1.26% gain. The stock saw significant trading interest, moving on a substantial volume of 218,732 shares.