The Ramco Cements Limited announced its standalone un-audited results for the second quarter of FY27, reporting a net revenue of Rs.2,466 crores, a 10% increase year-on-year. Sales volume grew by 8% to 4.74 million tons, despite monsoon disruptions. EBITDA saw a decline of 16% to Rs.331 crores due to increased fuel and packing costs. The company also highlighted its capital expenditure plans, including a new construction chemicals unit and capacity expansion.
The Ramco Cements Limited Announces Q2FY27 Results
The Ramco Cements Limited has released its standalone un-audited financial results for the second quarter ended September 30, 2026 (Q2FY27). The company reported a net revenue of Rs.2,466 crores, marking a 10% year-on-year growth compared to Rs.2,242 crores in Q2FY26. Construction chemicals business also demonstrated robust performance, with net revenue reaching Rs.130.77 Crores, a 50% increase from Rs.87.26 Crores in the prior year quarter.
Sales Volume and Operational Performance
During Q2FY27, the cement sale volume stood at 4.74 million tons, an 8% increase from 4.4 million tons in Q2FY26. This growth was achieved despite demand disruptions caused by the monsoon in several eastern and southern states. The cement capacity utilisation for the quarter was at 72%, slightly up from 71% in Q2FY26. The construction chemicals business recorded a sale volume of 2.04 lakh tons for Q2FY27, a significant 38% growth over 1.48 lakh tons in Q2FY26.
Financial Highlights and Cost Factors
Despite revenue growth, EBITDA for Q2FY27 declined by 16% to Rs.331 crores from Rs.394 crores in Q2FY26. This was primarily attributed to increased costs of fuel and packing materials, influenced by geopolitical disruptions in West Asia. Blended EBITDA per ton for Q2FY27 was Rs.669, down from Rs.866 in the previous year. The company also noted a variable cost impact of Rs.33 crores due to the Mineral Bearing Land Tax imposed by the Government of Tamil Nadu, which it disputes and pays under protest.
Power and fuel cost per ton of cement increased to Rs.1,397/- in Q2FY27 from Rs.1,029/- in Q2FY26, driven by higher imported fuel costs and domestic diesel price increases. Interest costs reduced to Rs.93 crores from Rs.111 crores in Q2FY26 due to prior year borrowing repayments. Depreciation for the quarter was Rs.190 crores. The company recognized an exceptional item of Rs.5 crores from the sale of surplus lands. Profit before tax for Q2FY27 (including exceptional items) was Rs.52 crores, compared to Rs.100 crores in Q2FY26.
Capital Expenditure and Future Plans
In terms of capital expenditure, the company completed debottlenecking activities at Jayanthipuram, increasing capacity by 0.73 MTPA. The total cement capacity now stands at 27.17 MTPA. The company plans to reach a capacity of ~31 MTPA by March 2027 with the commissioning of Line-2 at Kolimigundla. A clinkering unit at Kolimigundla with a capacity of 3.15 MTPA is expected by December 2026. Additionally, a 15 MW WHRS capacity is anticipated in Kolimigundla.
A new Construction Chemicals manufacturing unit is proposed at Kolimigundla Plant with a capacity of 1.2 lac tons p.a., at a cost of Rs.20 Crores, expected to be completed by Q2FY28. During Q2FY27, the company incurred Rs.197 crores towards capex. The capex guidance for FY27 is estimated at Rs.800 crores.
Disposal of Non-Core Assets and Debt
Over the past two years up to March 2026, the company has monetised Rs.1,098 crores through the sale of non-core assets. Active steps are in progress to dispose of remaining non-core assets valued at approximately Rs.150 crores. Of this, Rs.29 crores were realised during H1FY27.
The total debt as at September 30, 2026, stood at Rs.3,963 crores, compared to Rs.3,852 crores as at March 31, 2026. The cost of debt for Q2FY27 was 7.04%, a slight decrease from 7.18% in Q2FY26.
Source: BSE
