The Ramco Cements Limited reported a 6% growth in net revenue to Rs. 9,056 crores for FY26, supported by improved cement pricing. Despite a marginal growth in sales volume to 18.81 million tons, profitability increased significantly, with EBIDTA rising 16% to Rs. 1,482 crores. The company successfully reduced its net debt by Rs. 817 crores and has proposed a dividend of Rs. 2.50 per share for the fiscal year.
Financial Highlights
During FY26, the company demonstrated strong financial resilience. Net revenue reached Rs. 9,056 crores, a 6% increase from the previous year, driven by a 4% YoY improvement in prices. Profit after tax saw substantial growth, rising to Rs. 694 crores compared to Rs. 417 crores in FY25. The operating profit ratio improved to 16%, up from 15% in the prior year.
Cost Management and Efficiency
The company faced headwinds from a new Rs. 160 per ton mineral bearing land tax in Tamil Nadu, which added Rs. 86 per ton to variable costs. However, efficient management of power and fuel helped mitigate impact; the cost per ton of cement decreased from Rs. 1,123 to Rs. 1,098. A key factor was the increased share of green power, which rose to 40% during the year, alongside a reduction in the petcoke mix to 47%.
Debt Reduction and Asset Monetization
As part of its strategy to strengthen the balance sheet, the company reduced its net debt to Rs. 3,664 crores as of March 31, 2026, a reduction of Rs. 817 crores during the year. Furthermore, the company has successfully monetized Rs. 1,098 crores in non-core assets over the last two years and is currently working to dispose of the remaining assets valued at ~Rs. 150 crores.
Future Outlook and Capex
The company remains focused on expansion, targeting a cement capacity of ~31 MTPA by FY27. Planned projects include the commissioning of 15 MW of WHRS capacity and Kiln Line-2 at Kolimigundala. While anticipating a demand growth of 6-7% for FY27, management noted that rising fuel, polymer, and diesel prices are expected to create a cost push, which the company is monitoring closely as it navigates competitive pricing pressures.
Source: BSE
