Ramco Cements Sees Profit Rise Amid Price Headwinds
Ramco Cements Ltd reported a 19% year-on-year increase in net profit for the third quarter of FY26, underlining resilient performance even as industry pricing pressures and cost headwinds persisted. The cement maker posted profit after tax of approximately ₹387 crore for October–December, up from around ₹325 crore in the same period last year, with revenue from operations rising about 6.2 per cent to ₹2,105 crore.
The result highlights how a leading materials firm is balancing weakening cement prices and higher input costs with operational discipline and asset monetisation strategies. This dynamic has implications for regional construction markets, where material cost volatility can affect infrastructure and urban housing project economics.Average cement prices declined about 6 per cent quarter-on-quarter, with sharper drops of around 8–9 per cent in southern and eastern trade markets compared with September exit levels. Raw material costs also rose, influenced by new land tax levies on limestone in Tamil Nadu and higher fuel and power expenses.While cement pricing remains under pressure from competitive supply and subdued demand cycles in parts of India, Ramco’s broader revenue mix — including construction chemicals — helped mitigate some headwinds. Despite this, operating earnings before interest, tax, depreciation and amortisation (EBITDA) stayed largely flat, and operating margins contracted from around 14 per cent last year to about 13.3 per cent this quarter, reflecting a tighter cost-realisation balance.
For urban infrastructure planners and real estate developers, the company’s performance underscores the ongoing tension between input cost inflation and material price softness. Cement accounts for a significant share of building costs — and sustained pressure on margins could signal wider implications for pricing trends in ongoing and upcoming housing and civic projects.From a capital allocation perspective, Ramco revised its full-year capital expenditure down slightly to about ₹1,100 crore, including focused spend on brownfield expansions and efficiency enhancements such as waste heat recovery systems, while maintaining its long-term capacity expansion target. Installed cement capacity currently stands near 27.44 million tonnes but is expected to rise following debottlenecking and additional lines, supporting future urban demand cycles.Financial analysts suggest that although the headline profit growth is positive, underlying margin compression and competitive pricing dynamics warrant caution among investors. Some brokerages have adopted a more cautious stance on the stock, highlighting limited near-term earnings visibility and valuation risks amid broader sector headwinds.
Sector comparisons also reveal mixed results across peers, with some producers reporting volume gains but similarly facing margin squeezes. This reflects a broader industry trend: while demand fundamentals in housing and infrastructure remain intact, pricing power can be elusive when supply additions outpace short-term demand growth.As India’s urban expansion and public infrastructure programmes accelerate, materials companies like Ramco are at the nexus of economic, pricing and environmental pressures. Balanced growth will increasingly depend on cost optimisation, renewable energy integration and supply chain efficiencies — themes that industry watchers say will shape competitive positioning into FY27 and beyond.
