RAMCOIND - Ramco Inds.

📊 NSE: RAMCOIND 🏢 Cement Products 📅 Last Updated: 12/14/2025 11:36

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 10.5% YoY to INR 1,663 Cr in FY2025. The building products segment remains the primary revenue driver, while the textile segment faces pressure with subdued demand and drop in realisations. H1 FY2026 revenue was flat at INR 892 Cr compared to INR 893 Cr in H1 FY2025.

Geographic Revenue Split

India operations contribute approximately 79.5% of revenue, while Sri Lankan subsidiaries (Sri Ramco Lanka and Sri Ramco Roofings Lanka) contributed INR 182.71 Cr in H1 FY2026, representing ~20.5% of consolidated revenue.

Profitability Margins

PAT margin improved from 4.8% in FY2024 to 5.6% in FY2025. Operating margins are projected to remain stable at 10.5-11.0% for FY2026, driven by healthy performance in the building segment despite textile segment pressure.

EBITDA Margin

Operating profitability remained at ~11% in FY2025. Adjusted debt to EBITDA ratio improved to 1.31 times in FY2025 from 1.44 times in FY2024, reflecting better core profitability relative to debt levels.

Capital Expenditure

Planned capex of INR 185 Cr for a new 58,000 MTPA Fibre Cement Board plant in Maksi, Madhya Pradesh. Total medium-term capex is estimated at INR 200 Cr, funded by INR 135 Cr bank debt and internal accruals.

Credit Rating & Borrowing

Long-term rating reaffirmed at [ICRA]AA- (Stable) and short-term at [ICRA]A1+. NCD coupon rate is 7.6% for INR 100 Cr issuance maturing in Feb 2028. Commercial Paper rated Crisil A1+.

⚙️ Operational Drivers

Raw Materials

Key raw materials are asbestos fibre and cement. Asbestos fibre is a critical input for the FC sheet segment, which is the company's major profit contributor.

Import Sources

India imports 100% of its asbestos requirement. The company sources asbestos from major asbestos-producing nations such as Brazil and Russia.

Capacity Expansion

Planned expansion of 58,000 MTPA for Fibre Cement Boards at the Maksi, Madhya Pradesh plant, expected to commence operations in H2 FY2027.

Raw Material Costs

Margins are highly vulnerable to fluctuations in asbestos fibre and cement prices. The company has limited flexibility to pass on cost hikes due to intense competition in the FC sheet industry.

Manufacturing Efficiency

Average utilization of working capital bank limits was ~30% of drawing power during the 12 months through August 2025, indicating efficient liquidity management.

Logistics & Distribution

The company faces competition from established players with manufacturing units closer to high-growth markets in Northern and Eastern India, impacting distribution efficiency.

📈 Strategic Growth

Expected Growth Rate

10.50%

Growth Strategy

Growth is targeted through the INR 185 Cr expansion in the CSB segment in Madhya Pradesh to capture Northern and Eastern Indian markets. The company is also leveraging its strong financial flexibility from a ~INR 5,000 Cr investment portfolio in listed group companies to fund expansions and strategic share purchases.

Products & Services

Asbestos-based fibre cement (FC) sheets for roofing, Calcium Silicate Boards (CSB), and cotton yarn (textiles).

Brand Portfolio

Ramco Hilux, Ramco Hicem, Ramco Greencot.

New Products/Services

Expansion into the Calcium Silicate Board (CSB) segment with a new 58,000 MTPA plant to diversify the product mix.

Market Expansion

Targeting Northern and Eastern India through the new Maksi (MP) plant to compete with regional players.

Market Share & Ranking

Second-largest company in the Ramco Group after Ramco Cements Ltd.

Strategic Alliances

Part of the Ramco Group; holds a 23.08% stake in Ramco Cements Ltd and 19.07% in Ramco Systems Ltd as of March 2025.

🌍 External Factors

Industry Trends

The AC roofing industry remains the mainstay but faces long-term disruption risks from regulatory bans on asbestos and a consumer shift toward substitute steel products.

Competitive Landscape

Intense competition from established FC sheet manufacturers and substitute products like galvanized steel roofing.

Competitive Moat

Durable competitive advantage derived from exceptional financial flexibility provided by an unpledged INR 5,000 Cr investment portfolio in listed group entities, allowing for low-cost debt access.

Macro Economic Sensitivity

Highly sensitive to rural spending and agricultural income, which drive the demand for AC roofing sheets.

Consumer Behavior

Demand is primarily driven by rural housing and industrial roofing requirements.

Geopolitical Risks

Vulnerable to changes in mining policies or environmental regulations in asbestos-exporting countries.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to pollution control norms and international asbestos mining/usage regulations. India currently imports its entire asbestos requirement under existing trade norms.

Environmental Compliance

Exposed to regulatory risks regarding the manufacture and use of asbestos; any ban would necessitate a complete shift in the business model.

⚠️ Risk Analysis

Key Uncertainties

Potential for a total ban on asbestos usage (High impact), volatility in raw material prices (Moderate impact), and rural demand cyclicality (Moderate impact).