According to Motilal Oswal's research report dated August 07, 2026, The Ramco Cements (TRCL) delivered mixed results in Q1FY27. The company's revenue increased by approximately 10% year-on-year to ₹22.7 billion, which represented a 5% beat over estimates driven by higher volume and realization per tonne. However, EBITDA declined by around 23% YoY to ₹3.1 billion, though this still managed to beat estimates by 8%. The EBITDA per tonne fell by approximately 31% YoY to ₹666, compared to the estimated ₹639, while operating profit margin contracted by 5.7 percentage points YoY to around 14%, which was slightly above the estimated 13%.
As reported by Motilal Oswal, the company's adjusted profit after tax declined by 74% YoY to ₹222 million, which was 2.1 times above the company's estimates. This significant decline in profitability reflects the impact of lower EBITDA margins and operational challenges during the quarter.
According to the research report, The Ramco Cements is currently trading at 17x and 13x FY27E and FY28E EV/EBITDA multiples respectively. Motilal Oswal has reiterated its Neutral rating on the stock and set a target price of ₹900, valuing the company at 13x FY28E EV/EBITDA. The brokerage believes the stock is currently trading fairly at these valuation levels.
