The Ramco Cements Limited has informed the Exchange regarding a press release dated August 07, 2025, titled "PRESS RELEASE ON STANDALONE UN-AUDITED RESULTS FOR Q1FY26".
RAMCOCEM · price
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Awaiting price reaction for this filing.
The Ramco Cements reported Q1FY26 cement sales volume of 4 million tons, down 7% from 4.29 million tons a year ago, due to weak demand from early monsoon rains in Kerala and slowing infra activity in eastern markets. Capacity utilization dropped to 68% from 77%. Despite the volume decline, net revenue was largely flat at Rs. 2,077 crores (down 1% YoY), while EBITDA rose 23% to Rs. 404 crores helped by better cement prices, lifting blended EBITDA per ton to Rs. 981 from Rs. 752 and operating margin to 19% from 16%. Construction chemicals volumes jumped 79% to 1.2 lakh tons. Profit before tax more than doubled to Rs. 116 crores from Rs. 48 crores, aided by lower interest costs (Rs. 105 crores vs Rs. 113 crores). Raw material cost rose 7% due to a new Rs. 160/ton limestone tax in Tamil Nadu. Total debt stood at Rs. 4,734 crores with cost of debt easing to 7.64%. The company has already monetised Rs. 501 crores of its Rs. 1,000 crore non-core asset target and spent Rs. 321 crores of capex in the quarter, with full-year capex guidance of Rs. 1,200 crores to reach 30 MTPA capacity by March 2026.
Strong profit growth and margin expansion despite weak volumes signal pricing power and cost discipline, which should reassure shareholders. However, the 7% volume decline and capacity underutilisation, plus the new Tamil Nadu mineral tax, are near-term headwinds worth monitoring. The ongoing capex, debt reduction, and non-core asset monetisation support long-term growth and balance sheet improvement.