Earnings Outlook
High operating costs to drag Ramco Cements Q1 Profit After Tax down 78%
This story was originally published at 15:38 IST on 6 August 2026
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By Narayana Krishna
HYDERABAD – The Ramco Cements Ltd. is likely to report a sharp decline in earnings for the June quarter as a steep fall in average realisations along with higher input costs weighed on performance.
The Chennai-based cement maker is expected to post an over 78% year-on-year and a more than 74% sequential decline in its net profit to INR 185.43 million, according to the average of estimates from seven brokerages. The company's net sales are estimated at INR 21.85 billion, up nearly 6% on year but down over 16% on quarter.
Estimates for the company's June quarter net profit vary widely, with the highest estimate being INR 713 million from Anand Rathi Share and Stock Brokers Ltd. and the lowest being INR 27 million from 360 ONE Capital Market Pvt. Ltd. Estimates for revenue range from a high of INR 22.6 billion from Kotak Securities Ltd. to a low of INR 21.5 billion from 360 ONE Capital. The wide variation reflects differing assumptions on cement pricing and overall operating performance during the quarter.
Kotak Securities Ltd. estimates blended volumes at 4.5 million tonnes, up 10% on year but down 18.4% sequentially. It expects realisations to rise 6.1% on quarter but decline 1% on year, aided by price hikes across key regions. However, costs per tonne are seen increasing 6.3% sequentially and 5.3% on year due to higher freight and packaging expenses, along with operating deleverage, according to Kotak Securities.
At the aggregate level, Motilal Oswal Financial Services Ltd. projects Ramco Cements' earnings before interest, tax, depreciation, and amortisation for the quarter to decline 29% on year to INR 2.8 billion. the company's June quarter EBITDA is expected to be INR 2.8 billion, down nearly 30% on year and over 26% on quarter, according to the average of five estimates.
The EBITDA margin for the June quarter is seen at 12.0–14.2%, down from 19.2% in the year-ago period, based on estimates from Kotak Securities, Motilal Oswal, PhillipCapital, and SMIFFS.
Brokerages peg Ramco's EBITDA per tonne at INR 600–INR 701. Kotak Securities estimates the EBITDA per tonne at INR 701, down 27% on year but up 5.1% sequentially, while Motilal Oswal pegs it at INR 639, down from INR 966 a year ago and INR 671 in the preceding quarter. PhillipCapital and SMIFFS estimate EBITDA per tonne at INR 600, down 40% on year and 13% sequentially. The company is scheduled to announce its June quarter earnings Friday.
Of the 12 research reports on the company available with Informist, five have a "buy" recommendation with an average target price of INR 1,003, and three have a "hold" recommendation with an avergae target price of INR 901. Four brokerages assigned a "sell" rating with an average target price of INR 872 per share.
Shares of The Ramco Cements ended at INR 937.10 apiece on the National Stock Exchange, up almost 2%. The shares are up more than 3% since the company detailed its March quarter earnings.
Following are the June quarter earnings estimates for The Ramco Cements Ltd. from seven brokerage firms in descending order by estimate of net profit, in INR million:
|
Brokerages |
Net Sales |
Net Profit |
EBITDA |
|
Anand Rathi Share and Stock Brokers Ltd. |
21,651 |
713 |
-- |
|
Kotak Securities Ltd. |
22,592 |
347 |
3,178 |
|
Motilal Oswal Financial Services Ltd. |
21,600 |
100 |
2,800 |
|
PhillipCapital (India) Pvt Ltd. |
22,448 |
45 |
2,685 |
|
SMIFS Ltd. |
21,598 |
36 |
2,750 |
|
JM Financial Institutional Securities Pvt Ltd. |
21,603 |
30 |
2,760 |
|
360 ONE Capital Market Pvt Ltd. |
21,472 |
27 |
-- |
|
Average |
21,852 |
185 |
2,835 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Himanshi Gupta
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