The Ramco Cements Limited announced its unaudited standalone results for the third quarter of FY26 (Q3FY26). The company achieved a 5% increase in overall sales volume, driven by a remarkable 79% jump in construction chemicals sales (1.54 lac tons). Net revenue grew by 7% YoY to ₹2,119 crores. While EBIDTA saw a modest 3% rise to ₹298 crores, the company is actively managing rising input costs, particularly the impact of the new Mineral Bearing Land Tax in Tamil Nadu.
Q3FY26 Standalone Performance Highlights
For the quarter ending December 31, 2025 (Q3FY26), The Ramco Cements Limited reported positive growth across key operational metrics compared to Q3FY25. The overall sale volume increased by 5%, reaching 4.43 million tons. This growth was supported by a significant expansion in the construction chemicals segment, which grew by 79% to register 1.54 lac tons in sales volume.
The company’s Net Revenue for Q3FY26 was ₹2,119 crores, marking a 7% Year-over-Year (YoY) growth. Revenue from construction chemicals contributed ₹90 Crores. However, cement capacity utilization slightly moderated to 73% in Q3FY26 from 75% in Q3FY25.
Profitability and Input Cost Management
Blended EBIDTA for the quarter stood at ₹298 crores, a marginal increase of 3% YoY. Consequently, the Blended EBIDTA per ton was recorded at ₹651/-, slightly down from ₹666/- in Q3FY25, leading to the Operating Profit Ratio standing at 14% against 15% previously.
The company highlighted significant pressure from rising raw material costs, which increased by 4% YoY to Rs. 1012 per ton. This was primarily due to the imposition of the Mineral Bearing Land Tax (MBLT) in Tamil Nadu, resulting in an estimated variable cost impact of ₹47 Crores for the quarter. The power and fuel cost per ton also saw an uptick to Rs. 1,088/- from Rs. 1,061/-.
To mitigate fuel costs, the company increased its usage of green energy by 8%, utilizing wind power generation to reach 47% usage, with all green power assets being 100% owned.
Exceptional Items and Profit After Tax
Profit before exceptional items grew to Rs. 7 crores in Q3FY26, up from Rs. 4 crores in Q3FY25. Notably, the company booked Rs. 506 crores profit on the sale of land during the quarter.
Exceptional items were influenced by an expensing of Rs. 27 crores towards past service costs related to gratuity and compensated absences following the new labor codes of 2025. Net exceptional items totaled Rs. 479 crores (up from Rs. 329 crores in Q3FY25).
Profit Before Tax (after Exceptional Items) increased to Rs. 486 crores (against Rs. 333 crores). Profit After Tax (PAT) for Q3FY26 was reported at Rs. 387 Crores, compared to Rs. 325 Crores in Q3FY25.
Capital Expenditure and Asset Disposals
The company’s CAPEX for Q3FY26 was Rs. 222 Crores (cumulative 9MFY26: Rs. 823 Crores). The total estimated CAPEX for FY26 has been revised downward to approximately Rs. 1,100 Crores, a reduction of Rs. 100 Crores from the initial estimate of Rs. 1,200 Crores.
The company is on track to achieve a cement capacity of 31 MTPA by March 2027 through brownfield expansion and de-bottlenecking. For its new greenfield project in Karnataka, 59% of mining land has been acquired.
In the realm of asset monetization, Ramco Cements has disposed of non-core assets worth Rs. 1,017 Crores over the last two years, exceeding its target of Rs. 1,000 Crores. An additional disposal of approximately Rs. 200 crores is anticipated soon.
Balance Sheet Update
The Net Debt position improved significantly, standing at Rs. 4,145 crores as of December 31, 2025, down from Rs. 4,481 Crores on March 31, 2025. The cost of debt decreased to 7.10% in Q3FY26, compared to 7.89% in Q3FY25.
Source: BSE
