Ramco Cements has earmarked ₹800 crore for capital expenditure in FY27 as it steps up capacity expansion, with plans to take its cement capacity to around 31 million tonnes per annum (MTPA) through debottlenecking of existing integrated units and brownfield expansion at Kolimigundala.
The company expects to commission a 15 MW waste heat recovery system (WHRS) along with Kiln Line-2 at Kolimigundala during FY27.
Ramco Cements incurred ₹176 crore towards capex, including maintenance capex, during Q1FY27.
Q1 revenue up 10%
Ramco Cements reported a 10% year-on-year increase in net revenue to ₹2,276 crore in Q1FY27 from ₹2,077 crore in the corresponding quarter of FY26.
However, net profit declined sharply to ₹31.86 crore from ₹86.01 crore a year earlier, as higher fuel and packing costs and weaker realisations weighed on profitability.
EBITDA fell 22% to ₹314 crore from ₹404 crore in Q1FY26. EBITDA margin stood at 14% compared with 19% a year earlier.
Blended EBITDA per tonne declined to ₹681 from ₹981 in Q1FY26, reflecting higher input costs and a 5% year-on-year decline in realisation.
The company said it continues to pursue a strategy of matching products with applications while strengthening its brand equity.
Cement volumes rise 12%
Cement sales volume increased 12% year-on-year to 4.48 million tonnes in Q1FY27 from 4 million tonnes in the year-ago quarter.
The company achieved capacity utilisation of 70%, up from 68% in Q1FY26, despite demand disruptions caused by state elections in Tamil Nadu, Kerala and West Bengal.
The construction chemicals business also recorded volume growth, with sales rising 13% to 1.35 lakh tonnes from 1.20 lakh tonnes in Q1FY26.
Fuel costs weigh on margins
Power and fuel cost per tonne of cement increased to ₹1,326 in Q1FY27 from ₹1,222 in Q1FY26, primarily due to higher imported fuel costs following geopolitical disruptions in West Asia, which affected global fuel markets and freight rates.
The current spot CIF price of pet coke stood at $139.
The company said the depreciation of the rupee also affected fuel costs, with the blended fuel cost in Q1FY27 equivalent to $127 per tonne compared with $126 a year earlier. Cost per Kcal rose to ₹1.85 from ₹1.55.
The company also faced higher packing and forwarding costs, with domestic diesel prices rising 4% year-on-year and polymer prices increasing 40% due to geopolitical disruptions.
Green energy usage improves
Ramco Cements increased the share of green energy in its power consumption to 37% in Q1FY27 from 31% a year earlier.
The improvement was aided by the addition of WHRS capacity at R R Nagar during the previous year.
Tamil Nadu mineral tax adds cost pressure
The company said the mineral-bearing land tax of ₹160 per tonne of limestone imposed in Tamil Nadu from April 2025 resulted in a variable cost impact of ₹39 crore, equivalent to ₹84 per tonne of cement, during Q1FY27.
Ramco Cements said Tamil Nadu is currently the only state to have imposed such a levy at this level.
The company, along with other cement manufacturers, has represented to the Tamil Nadu government seeking a reduction in the levy. The matter is currently under consideration.
Debt rises, interest cost falls
Ramco Cements’ total debt stood at ₹4,007 crore as of June 30, 2026, compared with ₹3,852 crore as of March 31, 2026.
Despite the increase in debt, the company’s cost of debt declined to 7.03% in Q1FY27 from 7.64% in Q1FY26, helped by repo rate cuts.
Interest cost also fell to ₹96 crore from ₹105 crore a year earlier, supported by lower borrowing costs and repayment of borrowings during the previous year.
Depreciation increased to ₹190 crore from ₹183 crore in Q1FY26, mainly due to the commissioning of the WHRS at R R Nagar and the railway siding at Kolimigundala during FY26.
Profit before tax, including exceptional items, stood at ₹42 crore in Q1FY27 against ₹116 crore a year earlier.
The company earned ₹13 crore from the sale of surplus land during the quarter, which has been recognised under exceptional items.
Non-core asset monetisation
Ramco Cements has monetised ₹1,098 crore through the sale of non-core assets over the two years ended March 2026.
The company is taking steps to dispose of the remaining identified non-core assets valued at around ₹150 crore in the near term.
Of this identified pool, ₹24 crore was realised during Q1FY27.
The company’s continued asset monetisation, alongside its capacity expansion programme, is aimed at supporting its growth plans while strengthening its balance sheet.
With cement demand showing resilience and volumes growing despite regional disruptions, Ramco Cements is now looking to expand capacity while navigating elevated fuel, logistics and regulatory costs.