The Ramco Cements Limited Earnings Summary — Q1 FY2027
The Ramco Cements Limited Reports Revenue De-growth Amid Lower Volumes and Exceptional Gains
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 12.9% sequentially in Q1 FY2027.
- Revenue of ₹2,273 Cr is 9.6% higher year-on-year.
- Revenue has compounded at -7.0% annualised over the last 10 quarters.
- Net profit of ₹31 Cr is 63.3% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -46.8% annualised across the period.
- Operating margin stands at 13.5% in Q1 FY2027.
- Operating margin compressed by 569 bps year-on-year.
- Over the last two years operating margin has contracted by 181 bps.
- PBT margin is 1.8%.
- Expenses grew 17.3% against revenue growth of 9.6%.
- Operating profit of ₹306 Cr is 22.9% lower year-on-year.
- Operating leverage has been under pressure recently.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 34/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 2,273 | 2,610 | 2,106 | 2,239 | 2,074 | 2,397 | 1,983 | 2,044 | 2,094 | 2,678 |
| Expenses | Stable | 1,967 | 2,240 | 1,826 | 1,851 | 1,676 | 2,078 | 1,704 | 1,730 | 1,773 | 2,259 |
| Operating Profit | Stable | 306 | 371 | 280 | 388 | 398 | 319 | 279 | 314 | 320 | 419 |
| Operating Margin | Stable | 13.5% | 14.2% | 13.3% | 17.3% | 19.2% | 13.3% | 14.1% | 15.4% | 15.3% | 15.6% |
| Other Income | Volatile | 19 | 86 | 496 | 7 | 6 | 23 | 199 | 10 | 8 | 14 |
| Interest | Stable | 96 | 95 | 108 | 111 | 105 | 113 | 113 | 120 | 113 | 104 |
| Depreciation | Stable | 190 | 188 | 185 | 183 | 184 | 183 | 175 | 170 | 168 | 154 |
| Profit Before Tax | Volatile | 40 | 173 | 483 | 100 | 115 | 46 | 191 | 34 | 48 | 175 |
| Tax | Volatile | 9 | 27 | 98 | 24 | 30 | 21 | 8 | 9 | 13 | 45 |
| Net Profit | Volatile | 31 | 151 | 386 | 77 | 85 | 27 | 182 | 26 | 37 | 129 |
| Net Margin | Volatile | 1.4% | 5.8% | 18.3% | 3.5% | 4.1% | 1.1% | 9.2% | 1.3% | 1.8% | 4.8% |
Key Takeaways
- Consolidated Net Profit for Q1 FY2027 declined sharply to ₹31.24 Crores, compared to ₹150.72 Crores in the same quarter last year.
- Revenue from operations decreased by nearly 13% YoY, primarily due to lower volumes and pricing pressure in key markets.
- Operating margins on a standalone basis contracted to 14% from 19% YoY, reflecting reduced scale and volatile input costs.
- The quarter included an exceptional gain of ₹12.62 Crores related to the profit on sale of surplus lands.
- Consolidated debt-to-equity ratio stood at 0.49x, showing relative stability compared to 0.48x in the previous sequential quarter.
- The company continues to contest a ₹258.63 Crores penalty from the Competition Commission of India, maintaining no provision is required based on legal opinion.
Management Guidance
Management remains focused on debt containment, intending to fund future capex predominantly through internal accruals and non-core asset monetization to keep net debt capped near ₹5,000 Crores.
Sentiment Shift
Deteriorating
A significant drop in profitability and margins year-over-year suggests intensified market headwinds, despite sequential revenue growth.
Outlook
The company expects to reach a total installed capacity of 26 MTPA for cement by FY2026, supported by expansion projects in Kolimigundla and RR Nagar.
From the Annual Report (Key Quotes)
“The company's business operation comprises of single operating segment viz. cement & cement related products.”
“The Company backed by legal opinion, believes that it has a good case and hence no provision is made [regarding CCI penalty].”
“Our plan is to make sure that our free cash flow from operations will be used for capex, so we do not propose to add more borrowings.”
Official Quarterly Documents
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This summary is AI-generated from The Ramco Cements Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.