Ramco Cements Q2 results: standalone net profit nearly halves to Rs 38.18 crore as fuel costs rise
Ramco Cements Q2 results: standalone net profit fell to Rs 38.18 crore from Rs 74.31 crore as fuel costs rose, though revenue grew 10%.
The Ramco Cements’ standalone net profit fell 48.6% to Rs 38.18 crore in the quarter ended September 30, 2026 (Q2 FY27), from Rs 74.31 crore a year earlier, even as revenue rose 10%. The Ramco Cements Q2 results were filed with the NSE on November 5, 2026. Costlier imported fuel and packing materials, which the company linked to the West Asia war, ate into margins.
Ramco Cements Q2 results: key numbers
All figures are standalone and in Rs crore, from the filed results and the company’s press release.
| Measure (Rs crore) | Q2 FY27 | Q2 FY26 | Change |
|---|---|---|---|
| Revenue from operations | 2,458.28 | 2,234.84 | +10.0% |
| EBITDA | 331 | 394 | -16% |
| Power and fuel cost | 690.35 | 467.87 | +47.6% |
| Profit before tax | 52.14 | 100.24 | -48.0% |
| Net profit (profit after tax) | 38.18 | 74.31 | -48.6% |
Cement sales volume rose 8% to 4.74 million tonnes, and capacity use edged up to 72% from 71%. EBITDA (earnings before interest, tax, depreciation and amortisation) per tonne fell to Rs 669 from Rs 866. The EBITDA margin slipped to 13% from 18%.
Why Ramco Cements’ profit fell despite higher sales
The company said power and fuel cost per tonne of cement rose to Rs 1,397 from Rs 1,029. It blamed higher imported fuel prices and freight rates after geopolitical disruptions in West Asia. A 10% fall in the rupee against the dollar added to fuel costs. Polymer prices rose 43% and diesel 6%, lifting packing and forwarding costs.
Tamil Nadu’s Mineral Bearing Land Tax cost Rs 33 crore in the quarter, or Rs 69 per tonne of cement. The company believes the tax stopped being payable from August 22, 2026, under an amended central mining law. It is still paying under protest, and Rs 8.61 crore paid after that date has not been booked as an expense.
Lower interest cost helped a little. Finance costs fell to Rs 93 crore from Rs 111 crore after loan repayments, while depreciation rose to Rs 190 crore from Rs 182 crore.
One-time items
Profit includes an exceptional gain of Rs 4.80 crore from the sale of surplus land. There were no exceptional items in Q2 FY26. The construction chemicals business grew revenue 50% to Rs 130.77 crore.
What to watch next
Ramco plans to take cement capacity from 27.17 million tonnes a year (MTPA) to about 31 MTPA by March 2027, when Line-2 at Kolimigundla starts. FY27 capex guidance is Rs 800 crore. Total debt stood at Rs 3,963 crore on September 30, against Rs 3,852 crore in March. In our view, fuel prices and the Tamil Nadu levy dispute are the two items that will decide margins in the second half. For other cement company plans, see Ambuja Cements’ capacity expansion and more results news.
Frequently asked questions
What is the Mineral Bearing Land Tax mentioned by Ramco Cements?
It is a Tamil Nadu levy of Rs 160 per tonne of limestone. Ramco says it cost Rs 33 crore in Q2 FY27 and believes it is no longer payable from August 22, 2026, but is paying it under protest.
This article is a summary for information only and is not investment advice. Figures are as reported by the sources above; please verify with the original filing or report before making any decision.
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