The Ramco Cements Limited reported a 10% year-on-year growth in net revenue for the first quarter of FY27, reaching ₹2,276 crore. Cement sales volume increased by 12% to 4.48 million tons. However, EBITDA saw a 22% decline to ₹314 crore due to increased fuel costs and a 5% drop in realization. The company also highlighted efforts to manage increased mineral bearing land tax in Tamil Nadu.
The Ramco Cements Reports Q1FY27 Performance
The Ramco Cements Limited has announced its unaudited standalone financial results for the first quarter ended June 30, 2026 (Q1FY27). The company reported a net revenue of ₹2,276 crore, marking a 10% increase compared to ₹2,077 crore in the same period last year (Q1FY26).
Sales Volume and Capacity Utilization
During Q1FY27, the cement sale volume reached 4.48 million tons, a 12% growth from 4 million tons in Q1FY26. This growth was achieved despite demand disruptions caused by state elections in Tamil Nadu, Kerala, and West Bengal. Consequently, cement capacity utilization stood at 70%, up from 68% in Q1FY26. The construction chemicals business also saw a positive trend, with a 13% increase in sales volume to 1.35 lakh tons.
Financial Performance Highlights
EBITDA for Q1FY27 was reported at ₹314 crore, a 22% decrease from ₹404 crore in Q1FY26. This decline is attributed to increased costs of fuel and packing materials, influenced by geopolitical disruptions in West Asia, and a 5% year-on-year drop in realization. The blended EBITDA per ton decreased to ₹681 from ₹981 in the previous year, and the EBITDA ratio stood at 14% compared to 19% in Q1FY26.
Cost Factors and Strategic Initiatives
The company noted the impact of the mineral bearing land tax of ₹160 per ton of limestone in Tamil Nadu, which resulted in a variable cost impact of ₹39 crore (₹84 per ton of cement) in Q1FY27. The Ramco Cements, along with other industry players, has requested a reduction in this levy from the Tamil Nadu Government. Fuel costs saw an adverse impact due to an 11% rupee depreciation. Power and fuel cost per ton increased to ₹1,326 from ₹1,222 in Q1FY26, driven by escalating imported fuel costs. However, green energy usage improved to 37% due to increased WHRS capacity.
Capital Expenditure and Asset Disposal
The company plans to achieve a cement capacity of approximately 31 MTPA in FY27 through debottlenecking and brownfield expansion. An investment of ₹176 crore was made towards capex in Q1FY27, with guidance for FY27 estimated at ₹800 crore. Over the past two years, the company has monetized ₹1,098 crore through the sale of non-core assets, with an additional ₹24 crore realized in Q1FY27 from ongoing disposal efforts.
Debt Position
As of June 30, 2026, the total debt stood at ₹4,007 crore, compared to ₹3,852 crore as of March 31, 2026. The cost of debt for Q1FY27 was 7.03%, down from 7.64% in Q1FY26.
Source: BSE
