Higher energy bills took their toll. The Ramco Cements Ltd posted a 9% year-on-year fall in net profit to ₹71 crore for the second quarter of FY27, down from ₹78 crore a year earlier, according to its latest regulatory filing. Revenue rose 10% to ₹2,463 crore from ₹2,239 crore, supported by steady volume absorption. But runaway input costs gutted operational gains. Earnings before interest, tax, depreciation, and amortisation (EBITDA) tumbled 15.8% to ₹326 crore, pulling operating margins down to 13.2% from 17.3%. Blended EBITDA per tonne shrank from ₹866 to ₹669.
Cement dispatches climbed 8% to 4.74 million tonnes despite heavy monsoon rains disrupting infrastructure activity across Kerala, Karnataka, Odisha, and West Bengal. Plant capacity utilisation edged up to 72% from 71%. Concurrently, the construction chemicals division surged, delivering a 50% jump in net revenue to ₹130.77 crore on volumes of 2.04 lakh tonnes. The top-line momentum held. The shop floor delivered. Yet profitability cracked under external cost pressures.
Geopolitical flashpoints across West Asia drove up maritime freight and imported combustible fuel prices. Blended fuel consumption costs leaped to $140 per tonne of cement from $122 a year ago, with thermal energy costs escalating to ₹1.99 per kilocalorie from ₹1.49. A 10% annual depreciation in the Indian rupee amplified import bills. Consequently, total power and fuel expenses surged to ₹1,397 per tonne of cement, up from ₹1,029 in the year-ago period. Domestic diesel rates advanced 6%, while polymer input prices spiked 43%, sharply inflating bag packing and freight overheads.
| Metric (Q2 FY27) | Q2 FY27 | Q2 FY26 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹2,463 cr | ₹2,239 cr | +10.0% |
| Operating EBITDA | ₹326 cr | ₹387 cr | -15.8% |
| EBITDA Margin | 13.2% | 17.3% | -410 bps |
| Net Profit (PAT) | ₹71 cr | ₹78 cr | -9.0% |
| Cement Sales Volume | 4.74 MT | 4.40 MT | +8.0% |
Tax disputes compounded margin strain. The company absorbed a ₹33 crore variable cost hit—amounting to ₹69 per tonne of cement—stemming from the Tamil Nadu Mineral Bearing Land Tax on limestone. While the state levied ₹160 per tonne starting April 2025, Ramco Cements contends the charge lapsed under the amended Mines and Minerals Act effective August 22, 2026. Because state transport permit portals remain unadjusted, the producer remitted ₹8.61 crore under protest between late August and September without expensing it, joining peer manufacturers in petitioning state authorities.
Debt paydowns softened the balance-sheet blow. Financing charges dropped to ₹93 crore from ₹111 crore, following targeted principal repayments over the past fiscal year. Depreciation climbed to ₹190 crore from ₹182 crore as new waste heat recovery systems (WHRS) at RR Nagar and rail sidings at Kolimigundala went live, lifting the green energy share in the company's power mix to 50%. A ₹5 crore gain from selling surplus land provided a modest exceptional buffer, leaving profit before tax at ₹52 crore against ₹100 crore in Q2FY26.
Capex execution remains aggressive. Ramco Cements deployed ₹197 crore during the quarter, holding its full-year capital outlay guidance firm at ₹800 crore. Debottlenecking at Jayanthipuram added 0.73 million tonnes per annum (MTPA), lifting operational footprint to 27.17 MTPA. Management expects its 3.15 MTPA clinker line at Kolimigundala to commission ahead of schedule by December 2026, paired with a 15-megawatt WHRS unit. Once Line 2 becomes operational, aggregate cement capacity will cross 31 MTPA by March 2027, backed by a planned ₹20 crore construction chemicals plant slated for completion in FY28.
| Blended EBITDA / Tonne | ₹669 | ₹866 | -22.7% |