The Ramco Cements Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 2,458.28 Cr (+10.00% YoY) and PAT growth of -48.62% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 2,458.28 Cr (+10.00% YoY) |
| PAT (Q2) | Rs. 38.18 Cr (-48.62% YoY) |
| EBITDA margin | 13.45% (-418 bps YoY) |
| EPS (Q2) | Rs. 1.61 (-48.73% YoY) |
Q2 FY27 revenue grew 10.0% YoY to Rs.2,458.28 crore with sequential repair (EBITDA +5.14% QoQ, normalized PAT +56.31% QoQ), but the YoY P&L deteriorated sharply: EBITDA fell 16.10%, PAT fell 48.62%, and margin compressed 418 bps on a 47.55% YoY power and fuel spike from the West Asia conflict. The land-tax exemption from 22-Aug-2026 and the Jayanthipuram capacity addition are visible tailwinds for Q3, but H1 free cash flow was negative Rs.100.61 crore and net debt rose Rs.257 crore since March.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Volume | "volume growth likely holds at a double-digit YoY clip on the base effect" | volume not in the filing; revenue +10.00% YoY consistent | Partially |
| Realization | "blended realization roughly flat QoQ after Q1's +6%" | price/volume split not in filing; revenue +8.34% QoQ | Not observable |
| EBITDA margin | "likely compresses YoY versus 2QFY26's 18%" | 13.45% vs 17.63% (−418 bps) | Played out |
| Sequential recovery | "a partial, not full, recovery toward the prior-year level" from the Q1 trough | EBITDA +5.14% QoQ; margin 13.86%→13.45% — absolute recovery, margin flat | Partially |
| Land-tax tailwind | "raw-material cost/ton should step down from late August" | cost of materials −1.07% YoY, 17.38%→15.87% of revenue QoQ | Played out |
| Fresh exceptionals | "any fresh exceptionals (Q1 had a +Rs.12.62 Cr asset-sale gain)" | +Rs.4.80 crore land-sale gain booked as exceptional | Played out |
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| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 capex Rs.800 crore | capex guidance given with the Q4 FY26 / Q1 FY27 results updates | Rs.372.57 crore in H1 (46.6% of guide) | On Track |
| ~31 MTPA cement capacity by Mar-27 (20.72 clinker / 31.14 cement) | capacity roadmap restated in the Q4 FY26 results update | Jayanthipuram de-bottlenecking completed 29-Sep-2026 (+1.01 MTPA clinker / +0.73 MTPA grinding → 16.95 MTPA clinker / 27.17 MTPA cement); CWIP Rs.1,112.56 crore vs Rs.921.78 crore at Mar-26 | On Track |
| Kolimigundla Line II (+3.15 MTPA clinker / +3.00 MTPA cement / +15 MW WHRS) before Mar-27 | expansion guidance with the Q4 FY26 / Q1 FY27 updates | no commissioning update in the Q2 filing | Too Early |
| Non-core asset disposal — remaining ~Rs.150 crore, "near term" | non-core monetisation update with the Q4 FY26 results | Rs.4.80 crore exceptional land gain booked; Rs.29.11 crore H1 disposal proceeds — open-ended | On Track |
| Construction Chemicals Rs.2,000 crore in 4–5 years | "Hard Worker" brand unveiling, Aug-25 | not disclosed this quarter | Too Early |
| Land-tax cessation "will reduce operating costs and favourably impact profitability and cash flows" (company statement on the MMDR Amendment, Aug-26) | cost of materials −1.07% YoY and −151 bps as % of revenue QoQ; Rs.8.61 crore of post-exemption levy kept off the P&L under protest — direction), quantum undisclosed | Confirmed | |
| Deleveraging via lower borrowings and repo-driven rate cuts (Q1 FY27 update) | finance costs −16.56% YoY; D/E 0.49x vs 0.61x a year ago; but net debt +Rs.257 crore vs Mar-26 | Confirmed on cost, Partially on debt stock | |
| Volume resilience narrative (+12% YoY in Q1 despite elections) | Q2 volume not disclosed in the filing; revenue +10.0% YoY is consistent with continued volume-led growth on the easy +1% base — volume not in filing | Too Early | |
| Green power as a cost lever (37% of power mix in Q1) | no power-mix disclosure in the Q2 filing; power & fuel still +47.55% YoY | Too Early |
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|
| Cement sales (lac tons) | 44.00 | 44.33 | 53.89 | 44.80 | not disclosed |
| EBITDA/ton (Rs.) | 866 | 651 | 693 | 681 | not derivable (volume absent) |
| Green power share | 48% | 47% | 34% | 37% | not disclosed |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.