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EquityWireEarnings Review: High operating costs hits Ramco Cements Q1 earnings
Earnings Review

High operating costs hits Ramco Cements Q1 earnings

This story was originally published at 20:25 IST on 7 August 2026
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Informist, Friday, Aug. 7, 2026

 

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-- Ramco Cements Apr-Jun net profit INR 318.60 mln
-- Analysts saw Ramco Cements Apr-Jun net profit at INR 185.43 mln
-- Ramco Cements Apr-Jun revenue INR 22.69 bln
-- Ramco Cements Apr-Jun net profit INR 318.60 mln vs INR 860.10 mln yr ago
-- Ramco Cements Apr-Jun revenue INR 22.69 bln vs INR 20.70 bln yr ago
-- Ramco Cements Apr-Jun net profit includes one-time income INR 126.20 mln
-- Ramco Cements Apr-Jun operating margin 14% vs 19% year ago
-- Ramco Cements Apr-Jun cement sales volume 4.48 mln tn vs 4.0 mln tn yr ago
-- Ramco Cements Apr-Jun cement capacity utilisation at 70% vs 68% year ago
-- Ramco Cements Apr-Jun EBITDA INR 3.14 bln vs INR 4.04 bln year ago
-- Ramco Cements: Q1 EBITDA down YoY on higher fuel, packing materials cost
-- Ramco Cements: Realisations drop 5% on year in Apr-Jun
-- Ramco Cements Apr-Jun power, fuel cost per tn INR 1,326 vs 1,222 yr ago
-- Ramco Cements retains capex guidance at INR 8 bln for FY27

 

By Narayana Krishna

 

HYDERABAD - Higher operating cost, fall in realisations impacted Ramco Cements Ltd. June quarter earnings performance. The company has posted a better than expected net profit for the quarter aided by a one-time gain from the land sale. Leaving this, the company's earnings were relatively weak for the quarter.

 

The Chennai-based cement and building construction material manufacturer reported a net profit of INR 318.6 million, down nearly 63% on year. Analysts had expected the net profit at INR 185.43 million. Excluding the one-time income impact, the net profit would have been INR 192.4 million.

 

The company's revenue from operations for the quarter rose by 9.6% on year to INR 22.69 billion, above the estimates. Analysts projected Ramco Cements revenue at INR 21.85 billion.

 

Despite improvement in sales volumes and capacity utilisation, levy of mineral tax by Tamil Nadu government and increased fuel expenses had an impact on the company's profitability for the quarter.


Ramco Cements reported its June quarter cement sales volumes at 4.48 million tonne against 4.0 million tonne a year ago. Capacity utilisation for the quarter improved to 70% from 68% a year ago. Apart from fuel costs, a steep rise in packaging costs also hit the margins for the quarter, Ramco Cements said in a press release.


The company reported its earnings before interest, tax, depreciation, and amortisation at 3.14 billion against INR 4.04 billion a year ago. EBITDA margin for the quarter shrank by 500 basis points on year to 14%, which was at 19% a year ago. The realisations for the quarter dropped by 5% on year, the company said. 


Ramco Cements said the fuel costs for the quarter increased by 21.7% on year to 6.1 billion, while it is worked out at INR 1,326 per tonne against INR 1,222 per tonne a year ago. Transportation expenses for the quarter up by nearly 15% on year to INR 4.9 billion.


Total expenses for the quarter rose by 14.7% on year to INR 22.5 billion. Other expenses increased by 21.4% on year to INR 2.9 billion. Ramco Cements said the company has reduced its interest costs to INR 960 million from 1.05 billion a year ago due to reduced interest costs and repayment of some loans. The company's total debt as on Jun. 30 was at INR 40.07 billion.


Ramco Cements is retaining its earlier guidance of INR 8 billion capital expenditure spending for 2026-27 (Apr-Mar). For the June quarter, the company spent INR 1.76 billion. Most of the capex will go into its targeted capacity expansion to reach its total cement capacity of 31 million tonne per year.


On Friday, The Ramco Cements shares ended down 0.35% at INR 933.80 on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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