Ramco Cements Ltd reported a significant decline in Q1 FY27 performance, with standalone net profit falling 62.8% year-on-year to ₹32 crore from ₹86 crore in the corresponding quarter last year. According to reports from CNBC TV18, the profit was above the CNBC-TV18 poll estimate of ₹25 crore, though it represented a substantial decline from the previous year. The company attributed the profit decline to higher fuel and packing material costs following the West Asia war, along with a 5% year-on-year decline in realisation.
Despite profit challenges, revenue from operations increased 9.6% year-on-year to ₹2,269 crore from ₹2,070 crore in Q1 FY26, surpassing the CNBC-TV18 poll estimate of ₹2,210 crore. As reported by CNBC TV18, the company continued to focus on matching products with applications and strengthening brand equity during the quarter. However, EBITDA declined 22.7% to ₹307 crore from ₹398 crore in Q1 FY26, with EBITDA margin compressing to 13.5% from 19.23% in the year-ago period, below the poll estimate of 13.8%.
According to CNBC TV18 reports, cement sales volume stood at 4.48 million tonnes compared with 4 million tonnes in Q1 FY26, registering 12% growth despite demand disruptions due to state elections in Tamil Nadu, Kerala and West Bengal. Cement capacity utilisation improved to 70% in Q1 FY27 from 68% in Q1 FY26. The construction chemicals business recorded sales volume of 1.35 lakh tonnes, growing 13% from 1.20 lakh tonnes in the previous year.
As reported by CNBC TV18, the company faced significant cost pressures with blended fuel consumption cost per tonne of cement at $127 compared with $126 in Q1 FY26, impacted by 11% year-on-year rupee depreciation. Power and fuel cost per tonne of cement increased to ₹1,326 from ₹1,222 in Q1 FY26, driven by higher imported fuel costs due to geopolitical disruptions in West Asia. The levy of mineral-bearing land tax of ₹160 per tonne of limestone in Tamil Nadu resulted in a variable cost impact of ₹39 crore, equivalent to ₹84 per tonne of cement in Q1 FY27.
According to CNBC TV18 reports, the company plans to achieve cement capacity of around 31 million tonnes per annum (MTPA) including debottlenecking of existing integrated units and brownfield expansion at Kolimigundala during FY27. During Q1 FY27, the company incurred ₹176 crore towards capital expenditure, including maintenance capex, with capex guidance for FY27 standing at ₹800 crore. The company has monetised ₹1,098 crore through the sale of non-core assets over the past two years till March 2026, with total debt standing at ₹4,007 crore as of June 30, 2026, compared with ₹3,852 crore as of March 31, 2026.
