RAMCOCEM - The Ramco Cement
📢 Recent Corporate Announcements
The Ramco Cements Limited has sold non-core land assets worth ₹59.56 crores to Rainbow Foundations Limited as part of its ongoing monetization strategy. This transaction brings the total value of non-core assets disposed of to ₹1,080.82 crores, successfully exceeding the company's initial target of ₹1,000 crores set in Q2FY25. The company is now working towards an additional disposal target of ₹200 crores announced in December 2025. All proceeds from these sales are being utilized specifically to reduce the company's debt, which is expected to improve its financial health.
- Sold non-core land assets worth ₹59.56 crores to Rainbow Foundations Limited on February 26, 2026.
- Total non-core asset disposals have reached ₹1,080.82 crores, surpassing the initial ₹1,000 crore target.
- Company is currently pursuing a further disposal target of approximately ₹200 crores.
- Proceeds from these asset sales are being used to reduce the company's outstanding debt.
- The transaction was conducted at arm's length and does not involve related parties.
The Ramco Cements Limited has announced an improvement in its Environmental, Social, and Governance (ESG) rating for the financial year 2025. The rating, assigned by NSE Sustainability Ratings & Analytics Limited, increased to 64 from the previous score of 63 in FY 2024. This marginal improvement reflects the company's continued focus on sustainability and governance parameters. While the change is incremental, it signals a positive direction for institutional investors who prioritize ESG compliance in their portfolios.
- ESG rating improved from 63 in FY 2024 to 64 in FY 2025
- Rating issued by NSE Sustainability Ratings & Analytics Limited
- Assessment covers Environmental, Social, and Governance performance parameters
- Disclosure made under Regulation 30 of SEBI Listing Regulations
The Ramco Cements Limited has announced a comprehensive expansion roadmap to reach 31.14 MTPA cement and 20.72 MTPA clinker capacity by the end of FY27. The company has already completed a 2 MTPA capacity addition at its Ariyalur plant through de-bottlenecking. Additional de-bottlenecking projects in Tamil Nadu and Andhra Pradesh are expected to add 1.7 MTPA of cement capacity by June 2026. Furthermore, the company has doubled its planned cement capacity at the Kolimigundla brownfield site to 3 MTPA, maintaining an investment limit of Rs. 1,250 crores.
- Completed 2 MTPA cement capacity addition at Ariyalur plant, increasing it to 5.5 MTPA.
- Ongoing de-bottlenecking at Ramasamy Raja Nagar and Jayanthipuram to add 1.7 MTPA cement capacity by mid-2026.
- Revised Kolimigundla brownfield expansion to 3 MTPA cement capacity, up from the previously planned 1.5 MTPA.
- Total cement capacity projected to reach 31.14 MTPA by the end of FY27.
- Kolimigundla project investment of Rs. 1,250 crores to be funded via 70% borrowing and 30% internal accruals.
Ramco Cements reported a 7% YoY revenue growth to ₹2,119 crores for Q3FY26, driven by a 4% increase in cement volumes and a massive 79% surge in construction chemicals. While EBITDA grew slightly by 3% to ₹298 crores, margins were pressured by a new mineral tax in Tamil Nadu and higher fuel costs, leading to a lower EBITDA per ton of ₹651. The bottom line was significantly boosted by a ₹506 crore profit from land sales, resulting in a PAT of ₹387 crores. Net debt has improved to ₹4,145 crores, and the company successfully exceeded its non-core asset monetization target.
- Net Revenue increased 7% YoY to ₹2,119 crores, with construction chemicals revenue growing 74% to ₹90 crores.
- PAT rose to ₹387 crores, largely supported by a net exceptional gain of ₹479 crores primarily from land monetization.
- Net debt reduced by ₹336 crores since March 2025 to ₹4,145 crores, with the cost of debt falling to 7.10%.
- Green energy usage reached a record 47%, helping offset rising fuel costs and currency depreciation impacts.
- Operational EBITDA per ton declined slightly to ₹651 from ₹666 due to a ₹47 crore impact from the new Tamil Nadu mineral tax.
Ramco Cements reported a 19% YoY increase in standalone Profit After Tax (PAT) to ₹387 crore for 3QFY26, significantly aided by a ₹506 crore profit from the sale of non-core assets. Revenue grew 7% YoY to ₹2,119 crore, while cement sales volumes increased 5% to 44.33 lac tons. Despite a 6% sequential drop in cement prices and a new mineral land tax in Tamil Nadu impacting costs by ₹47 crore this quarter, the company successfully reduced its net debt to ₹4,145 crore. The company remains on track to reach a total capacity of 31 MTPA by March 2027.
- Standalone Revenue for 3QFY26 increased by 7% YoY to ₹2,119.10 crore.
- Profit After Tax (PAT) rose 19% YoY to ₹387 crore, supported by ₹506 crore profit from non-core asset sales.
- Net Debt decreased from ₹4,481 crore in March 2025 to ₹4,145 crore in December 2025.
- Construction Chemicals sales grew significantly by 79% YoY in 3QFY26 to 1.54 lac tons.
- Green power share increased to 47% in 3QFY26 compared to 39% in the previous year.
Ramco Cements reported a standalone net profit of ₹386.91 crore for Q3 FY26, significantly boosted by a net exceptional gain of ₹479.05 crore primarily from the sale of investments. However, core operational performance was weak, with profit before exceptional items falling to ₹6.58 crore from ₹100.24 crore in the previous quarter. Revenue from operations grew 6.3% YoY to ₹2,101.46 crore but declined 6% sequentially. Operating margins saw a sharp contraction to 11% from 18% in the preceding quarter, indicating significant pressure on core profitability.
- Net Profit after tax reached ₹386.91 crore, heavily influenced by a ₹479.05 crore net exceptional gain.
- Profit before exceptional items plummeted to ₹6.58 crore compared to ₹100.24 crore in Q2 FY26.
- Revenue from operations stood at ₹2,101.46 crore, up 6.3% YoY but down 6% QoQ.
- Operating margin contracted to 11% in Q3 FY26 from 18% in the previous quarter and 15% YoY.
- Exceptional items included a ₹505.62 crore gain from investment sales, offset by a ₹26.57 crore provision for new labor codes.
The Ramco Cements Limited has scheduled a Board Meeting for February 9, 2026, to consider and approve the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. In line with SEBI insider trading regulations, the trading window for designated persons will remain closed until February 11, 2026. This is a routine regulatory announcement preceding the quarterly earnings release. Investors should track these results to evaluate the company's performance in the cement sector during the third quarter.
- Board Meeting No: 1/2026 scheduled for February 9, 2026, to review Q3 and 9M results.
- Covers both Unaudited Standalone and Consolidated Financial Results for the period ended December 31, 2025.
- Trading window for directors and designated persons remains closed until February 11, 2026.
- Compliance filing under Regulations 29 and 50 of SEBI (LODR) Regulations, 2015.
The Ramco Cements Limited has submitted its periodic report regarding the re-lodgement of transfer requests for physical shares as per SEBI requirements. For the month of December 2025 and the period from January 1 to January 6, 2026, the company reported zero requests received, processed, or rejected. This is a routine regulatory filing that ensures compliance with SEBI's circular dated July 2, 2025. The announcement has no material impact on the company's financial health or operational performance.
- Zero (NIL) requests for physical share transfers were received or processed during December 2025.
- Zero (NIL) requests were received or approved for the period between January 1, 2026, and January 6, 2026.
- The filing is in compliance with SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/97.
- The report confirms that no physical share transfer re-lodgements are pending or under process.
The Ramco Cements Limited has received an update from the CESTAT regarding a long-standing litigation over CENVAT credit on outward freight. The tribunal has set aside a previous order involving a disputed amount of ₹2.33 Crores and remanded the matter back to the Original Authority for fresh consideration. The company also disclosed that similar pending disputes across various statutory authorities currently total ₹4.71 Crores. This procedural development indicates that the tax dispute remains unresolved but is being actively adjudicated.
- CESTAT set aside the order regarding a ₹2.33 Crores CENVAT credit dispute on outward freight
- The matter has been remanded to the Original Authority for further adjudication as per the order dated January 16, 2026
- Total similar pending disputes with different statutory authorities amount to ₹4.71 Crores
- The physical copy of the CESTAT order was collected by the company on January 20, 2026
The Ramco Cements Limited has submitted a compliance report under Regulations 6(1) and 7(1) of SEBI LODR. The company confirmed that it maintains an in-house registry for managing its equity shares and commercial papers. For its debentures, the company continues to utilize Cameo Corporate Services Limited as the registrar. This is a standard administrative disclosure and does not impact the company's financial health or business operations.
- Compliance filing submitted under Regulation 6(1) and 7(1) of SEBI LODR
- In-house registry confirmed for handling Equity Shares and Commercial Papers
- Cameo Corporate Services Limited designated as the agent for debentures
- Filing dated January 5, 2026, as per regulatory requirements
The Ramco Cements Limited has submitted its quarterly compliance report under SEBI (Depositories and Participants) Regulations for the period ending December 31, 2025. During this quarter, a total of 8,000 shares were dematerialized, with 4,000 shares processed via NSDL and 4,000 shares via CDSL. There were no instances of share rematerialization (converting electronic shares back to physical form) reported during this period. This filing is a standard administrative requirement and does not reflect any change in the company's operational or financial performance.
- Total of 8,000 shares dematerialized during the quarter ended December 31, 2025
- 4,000 shares dematerialized through NSDL for two individual holders
- 4,000 shares dematerialized through CDSL for one individual holder
- Zero shares were rematerialized during the reporting period across both depositories
The Ramco Cements Limited has secured approval from the Government of Andhra Pradesh to include Quartzite Mineral in its existing limestone mining lease in Nandyal District. The approval, received on January 3, 2026, allows the company to utilize quartzite for manufactured sand and pozzolanic additives in cement production. The mining lease is valid for a long-term duration until March 10, 2053. While the specific reserve volume is currently undetermined, this move enhances the company's resource base and supports vertical integration.
- Inclusion of Quartzite Mineral in existing limestone mining lease in Nandyal District, Andhra Pradesh.
- Mining rights for the mineral are valid for a long-term period until March 10, 2053.
- Mineral intended for use in manufactured sand and as pozzolanic additives in the cement industry.
- Approval granted by the Industries & Commerce (M.II) Department, Government of Andhra Pradesh.
- The quantum of mineable quartzite reserves is yet to be determined.
The Ramco Cements Limited has announced the closure of its trading window for all designated persons and their relatives starting January 1, 2026. This mandatory regulatory step precedes the board meeting for the declaration of unaudited standalone and consolidated financial results for the quarter and nine months ending December 31, 2025. The window will remain closed until 48 hours after the financial results are officially announced to the exchanges. The specific date for the board meeting will be communicated separately in the near future.
- Trading window closure effective from January 1, 2026, as per SEBI Insider Trading Regulations.
- Closure pertains to the financial results for the quarter and nine months ending December 31, 2025.
- Restriction applies to Directors, designated persons, and their immediate relatives.
- Window will reopen 48 hours after the conclusion of the upcoming Board Meeting.
- The official date for the Board Meeting to approve results is yet to be announced.
The Ramco Cements Limited has successfully sold non-core land assets worth ₹514.90 crores to Prestige Estates Projects Limited. This transaction brings the company's total non-core asset disposals to ₹1,016.92 crores, surpassing its initial strategic target of ₹1,000 crores. The management has confirmed that the proceeds will be utilized specifically to reduce the company's debt. Furthermore, the company has identified additional non-core assets worth approximately ₹200 crores to be liquidated by February 2026.
- Sold non-core land assets to Prestige Estates Projects for ₹514.90 crores on December 22, 2025.
- Cumulative asset disposals now stand at ₹1,016.92 crores, exceeding the ₹1,000 crore target set in November 2024.
- Entire proceeds from the asset sales are being directed toward debt reduction to strengthen the balance sheet.
- Additional non-core assets worth ₹200 crores are slated for disposal before February 28, 2026.
- The transaction was conducted at arm's length and does not involve related party interests.
ICRA Limited has reaffirmed the credit ratings for The Ramco Cements Limited across various debt instruments totaling over Rs. 9,000 crores. The long-term rating for term loans and fund-based facilities worth Rs. 4,464 crore remains at [ICRA]AA+ with a Stable outlook. Short-term instruments, including commercial paper of Rs. 900 crore and fund-based limits of Rs. 3,112 crore, have been reaffirmed at the highest [ICRA]A1+ rating. This reaffirmation indicates the company's sustained credit profile and stable financial position within the cement sector.
- Long-term rating for Rs. 2,902 crore term loans reaffirmed at [ICRA]AA+ with a Stable outlook
- Short-term fund-based limits of Rs. 3,112 crore maintained at the highest [ICRA]A1+ rating
- Commercial Paper program of Rs. 900 crore reaffirmed at [ICRA]A1+
- Total bank limits and instruments rated across all categories exceed Rs. 9,000 crore
- Ratings reaffirmed across major lenders including HDFC Bank, Axis Bank, and Kotak Mahindra Bank
Financial Performance
Revenue Growth by Segment
Total revenue for FY25 was INR 8,539.10 Cr, a 9% decrease from INR 9,392.17 Cr in FY24. Cement and construction chemicals sales volume contributed INR 8,468.40 Cr (-9% YoY), while income from wind power dropped 100% to zero on a separate basis. Q2 FY26 showed a recovery with standalone revenue of INR 2,241.89 Cr, up 9% YoY.
Geographic Revenue Split
Approximately 75% of the company's revenues are derived from the four southern states of India (Tamil Nadu, Andhra Pradesh, Karnataka, and Kerala), indicating a high regional concentration in the South Indian market.
Profitability Margins
Net Profit Margin improved to 5% in FY25 from 4% in FY24. However, Operating Profit Margin (EBITDA/Net Revenue) declined from 17% in FY24 to 15% in FY25 due to pricing pressures. Q2 FY26 saw a significant rebound in Net Profit Margin to 3% compared to 1% in Q2 FY25.
EBITDA Margin
EBITDA margin stood at 15% for FY25, down from 17% in FY24. For Q2 FY26, the EBITDA margin improved to 18% from 16% in Q2 FY25, driven by a 22% YoY increase in EBITDA to INR 393.96 Cr, reflecting better operational efficiency and cost management.
Capital Expenditure
The company incurred INR 1,024.01 Cr in capital expenditure during FY25. Planned capex for fiscal 2025 and 2026 is expected to be approximately INR 1,200 Cr annually, which is lower than the previous three-year average of INR 1,800 Cr, aiming to improve the capital structure.
Credit Rating & Borrowing
The company maintains a strong credit profile with a CRISIL A1+ rating for Commercial Paper and an ICRA AA+ (Stable) rating for Non-Convertible Debentures. Competitive interest rates are enjoyed due to its lineage, though finance costs rose 10% to INR 458.76 Cr in FY25 due to higher debt levels.
Operational Drivers
Raw Materials
Key raw materials include limestone and gypsum; the cost of materials consumed was INR 1,768.76 Cr in FY25, representing 20.7% of total revenue, a 1% increase YoY despite lower production volumes.
Import Sources
Not specifically disclosed in the provided documents, though the company uses forward covers for high-value import transactions, suggesting reliance on international markets for certain fuel or raw material components.
Capacity Expansion
Current integrated cement capacity is 14.7 MTPA across five facilities, with an additional grinding capacity of 8.44 MTPA. WHRS capacity was recently expanded from 43.15 MW to 45.15 MW to reduce reliance on external power.
Raw Material Costs
Raw material costs represented 20.7% of revenue in FY25. The company manages these costs through strategic procurement and by increasing the use of captive resources like wind power and WHRS.
Manufacturing Efficiency
Capacity utilization is estimated to reach 80% in fiscal 2025, a significant improvement from the 56% average seen over the past decade, which will help amortize fixed costs over larger volumes.
Logistics & Distribution
Transportation and handling costs accounted for 22.8% of total revenue in FY25, reflecting the high weight-to-value ratio of cement and the importance of efficient distribution in the southern region.
Strategic Growth
Expected Growth Rate
9%
Growth Strategy
Growth will be achieved by increasing capacity utilization from 56% to 80%, monetizing INR 1,000 Cr of non-core assets (INR 459.79 Cr already achieved) to reduce debt, and expanding the construction chemicals business. The company is also focusing on reducing interest costs by repaying borrowings from asset sale proceeds.
Products & Services
The company sells cement bags, construction chemicals, and generates wind power through its subsidiaries and captive plants.
Brand Portfolio
Ramco Cements, Ramco Supergrade, Ramco Supercrete.
New Products/Services
Expansion into construction chemicals is expected to diversify revenue streams, though specific contribution percentages for new launches are not disclosed.
Market Expansion
Focusing on strengthening its 75% revenue share in South India while utilizing grinding capacities in East India to capture regional demand growth.
Market Share & Ranking
The company is a leading player in South India, though specific national market share percentage is not provided.
Strategic Alliances
Maintains strategic associate relationships with Ramco Industries Limited (15.40% stake), Ramco Systems Limited (15.30%), and Rajapalayam Mills Limited (0.46%).
External Factors
Industry Trends
The industry is seeing a shift toward captive power (WHRS) and green energy to combat rising grid costs. Demand outlook remains healthy, supporting a move toward 80% capacity utilization for major players like RAMCOCEM.
Competitive Landscape
Operates in a highly competitive cement market, particularly in South India, where pricing pressure from larger national players and regional peers affects margins.
Competitive Moat
Moat is built on a 80-year lineage, strong brand recognition in South India, and a high degree of backward integration through captive power and limestone reserves. Sustainability is supported by reducing debt through non-core asset sales.
Macro Economic Sensitivity
Highly sensitive to infrastructure spending and interest rates; a 10% increase in finance costs was noted in FY25, impacting PBT which fell 77% before exceptional items.
Consumer Behavior
Increasing demand for specialized construction chemicals alongside traditional cement, prompting the company to expand its product portfolio.
Geopolitical Risks
Exposure to global fuel price volatility (coal/petcoke) which impacts the power and fuel cost component (24% of revenue).
Regulatory & Governance
Industry Regulations
Operations are subject to the Companies Act 2013 and SEBI LODR regulations. The company maintains internal financial controls and risk management policies as per Section 134.
Environmental Compliance
The company is investing in Waste Heat Recovery Systems (WHRS) to comply with environmental goals and reduce carbon footprint, expanding capacity to 45.15 MW.
Taxation Policy Impact
Effective tax expense for FY25 was INR 48.35 Cr, a 67% decrease from FY24, following the drop in Profit Before Tax.
Legal Contingencies
The Income Tax Department has filed an appeal in the Madras High Court against an ITAT order for AY 2011-12 regarding revenue expenditure treated as capital expenditure, involving a disputed tax value of INR 7.35 Cr.
Risk Analysis
Key Uncertainties
Cement price volatility is the primary uncertainty, which caused a 20% drop in EBITDA in FY25. High debt-funded capex is a monitorable risk that could constrain the financial profile.
Geographic Concentration Risk
High concentration risk with 75% of revenue coming from South India, making the company vulnerable to regional economic downturns or monsoon impacts in those states.
Third Party Dependencies
Dependency on the Ramco Group for certain services; 22.05% of promoter shares (9.38% of overall shareholding) are pledged as of March 31, 2025.
Technology Obsolescence Risk
The company manages IT risks through a certified IT system and policy to protect business information and ensure robustness against cyber threats.
Credit & Counterparty Risk
Debtors turnover ratio increased from 26 to 34 days, indicating a slight weakening in receivables management and potential credit risk from customers.