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Ramco Cements reported a fivefold jump in consolidated net profit to INR 181.58 crore in the first quarter of FY26, driven by higher cement prices and better operational efficiency. Although the company's revenue dipped marginally to INR 2,074 crore, a 23% growth in EBITDA and reduced expenses helped lift the bottom line. Cement sales volume declined by 7% due to early monsoon impact in Kerala and slowing infrastructure demand in the eastern region. Capacity utilisation also fell, but the company remains focused on expanding capacity to 30 MTPA by March 2026.
Ramco Cements Ltd has reported a sharp rise in its consolidated net profit, reaching INR 181.58 crore for the first quarter of FY26, compared to INR 36.57 crore in the same quarter a year ago. This significant increase comes despite a marginal decline in revenue from operations, which fell to INR 2,074 crore from INR 2,093.55 crore during the corresponding period in FY25. Advertisement
The company's performance was boosted by a noticeable improvement in cement prices along with enhanced operational efficiencies. As a result, its EBITDA for the quarter rose by 23%, reaching INR 404 crore, compared to INR 328 crore recorded in the same quarter last year.
However, sales volume took a hit. Cement sales dropped to 4 million tonnes from 4.29 million tonnes, marking a 7% year-on-year decline. The company attributed this fall to early monsoon showers in Kerala that dampened construction activity, along with the slowdown in infrastructure projects nearing completion in eastern markets, which were further affected by unseasonal rainfall.
Due to this softer demand, capacity utilisation also saw a decline, falling to 68% in Q1 FY26 from 77% in the previous year's same quarter. Despite the drop in sales and utilisation, Ramco Cements successfully kept costs in check, with total expenses dropping 4.3% to INR 1,965.13 crore.
The company's total income, including other income, stood at INR 2,080 crore, a slight decline of 1% from the previous year.
On the expansion front, Ramco Cements stated that it plans to achieve a cement production capacity of 30 million tonnes per annum (MTPA) by March 2026. This goal is expected to be met through the commissioning of a second production line at Kolimigundla, in addition to de-bottlenecking at existing plants and increasing grinding capacity at current locations, all while keeping capital expenditure nominal.
Meanwhile, the company's shares witnessed selling pressure in the stock market, dropping 6.32% to INR 1,064.35 during morning trade on the BSE.
Source PTI
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