The Ramco Cements Limited reported robust performance for the third quarter of FY26 (3QFY26) and the nine-month period (9MFY26). Revenue grew by 7% YoY in the quarter, while consolidated Profit After Tax saw a massive surge of 110% YoY in 3QFY26. The company maintained a cement capacity utilization of 73% in 3QFY26 and showed significant growth in its Construction Chemicals segment.
Executive Summary and Macro Environment
The Ramco Cements Limited (TRCL) provided an investor update for the period ending 3QFY26. The macro environment suggests a favorable outlook for FY27, with real GDP growth projected between 6.8% and 7.2%, supported by strong rural incomes and tax rationalization. Positively, the Indian Rupee hit a historic low, but government capital expenditure (Capex) allocation for FY27 is substantial at ₹12.2 lac crores.
Key watch-outs include geopolitical tensions, volatility in energy prices impacting margins, and competitive intensity due to capacity additions.
Market Performance Update (3QFY26)
In the South region, B2B and B2C volumes grew YoY, with premium products rising to 29% of the mix. Trade prices, however, dropped by 8% since September 2025. The East region saw B2C volume growth, while B2B was flat YoY. Trade prices in the East dropped by 9%.
The company’s focus remains on promoting the Hard Worker construction chemicals brand, which saw volume growth of 79% YoY in Q3FY26.
Sales and Capacity Utilization
Cement capacity utilization stood at 73% in 3QFY26, up from 75% in 3QFY25, with OPC mix increasing to 35%. Cement sales volume increased by 4% YoY to 44.33 Lac Tons in 3QFY26. Construction Chemicals sales saw an impressive jump of 79% YoY in the quarter, reaching 1.54 Lac Tons.
For the nine months ending 9MFY26, capacity utilization was 71%. Total cement sales volume remained flat YoY at 128.31 Lac Tons, while Construction Chemicals sales grew by a substantial 77% YoY to 4.22 Lac Tons.
Key Financial Performance (3QFY26)
The performance highlights significant year-over-year improvements:
- Revenue: Increased by 7% YoY to ₹2,119 Crores (Standalone).
- Cash Profit: Grew by 25% YoY to ₹637 Crores.
- Profit Before Tax (PBT) including Exceptional Items: Increased by 46% YoY to ₹486 Crores.
- Profit After Tax (PAT): Increased by 19% YoY to ₹387 Crores.
A major exceptional item was the Profit on sale of non-core assets of ₹506 Crores. Input cost pressure included an increase in raw material cost due to the levy of mineral bearing land tax in Tamil Nadu, amounting to approximately ₹47 Crores for 3QFY26.
Key Financial Performance (9MFY26)
For the nine-month period, consolidated PBT (including exceptional items) reached ₹697.77 Crores, a 155% increase over 9MFY25, with consolidated PAT growing 124% YoY to ₹545.32 Crores. Total revenue grew by 5% YoY.
Cost Management Analysis
Cost metrics showed mixed results:
- Raw Material Cost/Ton: Increased by 4% YoY in 3QFY26 to ₹1,012, primarily due to the new land tax. Efficiency gains in clinker conversion ratio (from 1.4x to 1.43x) helped mitigate some pressure.
- Logistics Cost/Ton: Decreased by 2% YoY in 3QFY26 to ₹1,050, aided by better rail co-efficient for dispatches.
- Power and Fuel Cost/Ton: Increased by 6% YoY in 3QFY26 to ₹1,088, impacted by fuel price increases and currency depreciation. However, the use of green power reached 47% of total power in 3QFY26.
- Employee Cost/Ton: Decreased by 2% YoY in 3QFY26 to ₹294.
Balance Sheet and Capital Structure
Interest costs decreased due to efficiency gains, with the effective rate of interest dropping by 79 bps YoY in 3QFY26. Depreciation rose by 6% YoY in the quarter due to the commissioning of new facilities.
Total Borrowings stood at ₹4,188.34 Crores as of December 31, 2025, leading to a Net Debt/EBITDA ratio of 2.84x. The company has successfully monetized ₹1,017 Crores from non-core assets against a target of ₹1,000 Crores over the last two years.
Capacity Expansion
The company is on track for expansion. Capacity as of December 2025 was 15.94 MTPA (Clinker). Debottlenecking efforts during Q4FY26 are expected to increase capacity to 16.56 MTPA by March 2026. Further expansion through brownfield projects (Kolimigundla Line II) targets a total capacity of 20.72 MTPA (Clinker) by March 2027.
ESG Highlights
Sustainability efforts show progress, with CO2 emissions at 573 Kg / T of Cement. Blended cement constituted 65% of production, and green energy met 47% of power requirements in 3QFY26.
Awards and Recognition
The company received significant accolades, including the Hard Worker construction chemicals brand earning a double Gold at the ET Brand Equity Shark Awards 2025. The Ariyalur unit was also recognized with Honourz Excellence Awards for leadership in EHS Culture, CSR, and HR Excellence.
Source: BSE
