The Ramco Cements Ltd reported a 9% year-on-year decline in net profit to ₹71 crore for Q2FY27, compared with ₹78 crore in the corresponding quarter last year. According to reports from CNBC TV18, revenue increased 10% to ₹2,463 crore from ₹2,239 crore in the year-ago period. The company's EBITDA declined 15.8% to ₹326 crore for the second quarter of FY27, compared with ₹387 crore in the year-ago period, as higher fuel and packing material costs linked to the West Asia conflict weighed on operating performance. The EBITDA margin contracted to 13.2% from 17.3% in the previous year, reflecting the impact of geopolitical disruptions on operational efficiency.
Cement sales volume rose 8% to 4.74 million tonnes in Q2FY27 from 4.4 million tonnes a year earlier, despite monsoon-related demand disruptions in Kerala, Karnataka, Odisha and West Bengal. As reported by CNBC TV18, cement capacity utilisation stood at 72%, compared with 71% in Q2FY26. The construction chemicals business recorded a 38% increase in sales volume to 2.04 lakh tonnes from 1.48 lakh tonnes, with net revenue growing 50% to ₹130.77 crore from ₹87.26 crore. However, blended EBITDA per tonne of cement declined to ₹669 in Q2FY27 from ₹866 in the year-ago quarter, with the EBITDA ratio standing at 13% compared with 18% in Q2FY26.
The company attributed the margin compression to geopolitical shipping disruptions in West Asia and surging polymer prices. According to CNBC TV18, blended fuel consumption cost per tonne of cement increased to $140 in Q2FY27 from $122 in Q2FY26, with the cost per kilocalorie rising to ₹1.99 from ₹1.49. Power and fuel cost per tonne of cement rose to ₹1,397 from ₹1,029 in the year-ago quarter, primarily due to higher imported fuel costs and freight rates amid geopolitical disruptions in West Asia. Domestic diesel prices increased 6% year-on-year, while polymer prices rose 43%. The 10% year-on-year depreciation in the rupee also adversely affected fuel costs, adding to the overall pressure on operational margins.
The company incurred a variable cost impact of ₹33 crore, equivalent to ₹69 per tonne of cement, during the quarter due to Tamil Nadu's Mineral Bearing Land Tax on limestone. As reported by CNBC TV18, the state government had imposed a levy of ₹160 per tonne of limestone from April 4, 2025, and the company expensed it up to August 21, 2026. The company believes the tax is no longer payable under the Mines and Minerals (Development and Regulation) Amendment Act, 2026, which came into effect on August 22, 2026, but the Tamil Nadu Government's Mineral Management System portal remains unupdated, keeping the levy disputed. The ₹197 crore remitted towards the levy between August 22 and September 30, 2026, has not been recognised as an expense as the matter remains pending with the Tamil Nadu government.
The company completed debottlenecking activities at Jayanthipuram during Q2FY27, increasing capacity by 0.73 million tonnes per annum (MTPA). According to CNBC TV18, Ramco Cements plans to increase cement capacity to around 31 MTPA by March 2027, following the commissioning of Line 2 at Kolimigundala. The 3.15 MTPA clinkering unit at Kolimigundala is expected to be commissioned ahead of schedule by December 2026, along with a 15-megawatt WHRS facility that would increase green power generation potential. The company has proposed setting up a construction chemicals manufacturing unit at Kolimigundala with an annual production capacity of 1.2 lakh tonnes, estimated to cost ₹20 crore and complete by Q2FY28. The company incurred ₹197 crore in capital expenditure during Q2FY27, including maintenance capex, with its capital expenditure guidance for FY27 standing at ₹800 crore.
The company's total debt stood at ₹3,963 crore as of September 30, 2026, compared with ₹3,852 crore as of March 31, 2026, while the cost of debt was 7.04% in Q2FY27 against 7.18% in Q2FY26. Interest cost declined to ₹93 crore in Q2FY27 from ₹111 crore in Q2FY26, following repayment of borrowings during the previous year. The company earned a profit of ₹5 crore from the sale of surplus land during the quarter, recognised under exceptional items. Profit before tax, including exceptional items, stood at ₹52 crore, compared with ₹100 crore in Q2FY26. Shares of Ramco Cements Ltd ended at ₹814.20, up by ₹42.55, or 5.51%, on the BSE following the results announcement.
