Revenue from operations increased 9.6% year-on-year to ₹2,269 crore from ₹2,070 crore in Q1 FY26. Revenue was above the CNBC-TV18 poll estimate of ₹2,210 crore. The company said it continued to focus on matching products with applications and strengthening brand equity.
Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at ₹307 crore, down 22.7% from ₹398 crore in Q1 FY26. EBITDA was slightly above the CNBC-TV18 poll estimate of ₹305 crore. The decline was due to higher fuel and packing material costs following the West Asia war, along with a 5% year-on-year decline in realisation.
EBITDA margin stood at 13.5% in Q1 FY27 compared with 19.23% in the year-ago period. The margin was below the CNBC-TV18 poll estimate of 13.8%. Blended EBITDA per tonne stood at ₹681 in Q1 FY27 compared with ₹981 in Q1 FY26.
During Q1 FY27, cement sales volume stood at 4.48 million tonnes compared with 4 million tonnes in Q1 FY26, registering a growth of 12%. The company said the volume growth came despite demand disruptions due to state elections in Tamil Nadu, Kerala and West Bengal.
Cement capacity utilisation stood at 70% in Q1 FY27 compared with 68% in Q1 FY26. The construction chemicals business recorded sales volume of 1.35 lakh tonnes in Q1 FY27, compared with 1.20 lakh tonnes in Q1 FY26, growing 13%.
Cost Impact
The company said the levy of mineral-bearing land tax of ₹160 per tonne of limestone in Tamil Nadu, effective from April 2025, resulted in a variable cost impact of ₹39 crore, equivalent to ₹84 per tonne of cement, in Q1 FY27.
The company, along with other cement companies, has represented to the Tamil Nadu government for a reduction in the levy, which is under consideration.
Blended fuel consumption cost per tonne of cement stood at $127 in Q1 FY27 compared with $126 in Q1 FY26. The fuel cost was impacted by 11% year-on-year rupee depreciation.
Power and fuel cost per tonne of cement increased to ₹1,326 in Q1 FY27 from ₹1,222 in Q1 FY26, driven by higher imported fuel costs due to geopolitical disruptions in West Asia, which affected global fuel markets and freight rates.
The current spot CIF price of pet coke stood at $139. Green energy usage increased to 37% in Q1 FY27 from 31% in Q1 FY26 following the addition of waste heat recovery system (WHRS) capacity at RR Nagar during the previous year.
Domestic diesel prices increased 4% year-on-year, while polymer prices rose 40%, impacting packing and forwarding costs. Interest cost declined to ₹96 crore in Q1 FY27 from ₹105 crore in Q1 FY26 due to repo rate cuts and repayment of borrowings during the previous year.
Depreciation increased to ₹190 crore from ₹183 crore due to commissioning of facilities, including WHRS at RR Nagar and railway siding at Kolimigundala during FY26.
The company earned a profit of ₹13 crore from the sale of surplus land, which was recognised under exceptional items. Profit before tax, including exceptional items, stood at ₹42 crore in Q1 FY27 compared with ₹116 crore in Q1 FY26.
Capex and Capacity Expansion
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. A 15 MW WHRS capacity is expected to be commissioned at Kolimigundala along with Kiln Line-2 in FY27.
During Q1 FY27, the company incurred ₹176 crore towards capital expenditure, including maintenance capex. The capex guidance for FY27 stands at ₹800 crore.
Non-Core Asset Sale and Debt
The company has monetised ₹1,098 crore through the sale of non-core assets over the past two years till March 2026. Steps are underway to dispose of the remaining identified non-core assets valued at around ₹150 crore. Of this, the company realised ₹24 crore during Q1 FY27.
The company’s total debt stood at ₹4,007 crore as of June 30, 2026, compared with ₹3,852 crore as of March 31, 2026. The cost of debt declined to 7.03% in Q1 FY27 from 7.64% in Q1 FY26.
Shares of Ramco Cements Ltd ended at ₹915.00, down by ₹21.70, or 2.32%, on the BSE.
