[Ramco Cements](ramco cements) has reported its standalone audited financial results for the fiscal year ended March 31, 2026, recording a 66% increase in net profit to ₹694 crore from ₹417 crore in the previous year. This growth was supported by a 6% rise in net revenue to ₹9,056 crore, up from ₹8,539 crore in FY25. The Board of Directors has recommended a dividend of ₹2.50 per equity share of Re.1/- each for the financial year 2025-26, subject to shareholder approval.

Q4 Standalone Performance

On a quarterly basis, the company delivered a notable improvement across key metrics. Q4 EBITDA rose to ₹370 crore compared to ₹320 crore in the same period last year, with the EBITDA margin expanding to 14.30% from 13.42% year-on-year. Q4 standalone net profit surged to ₹146 crore versus ₹31 crore in the corresponding quarter of the previous year. Q4 revenue stood at ₹2,606 crore, up from ₹2,392 crore year-on-year.

The table below summarises the key Q4 standalone metrics:

Full-Year Financial Performance

The company's operational metrics showed mixed results for the full year. Total sale volume for FY26 stood at 18.81 million tons, a marginal growth of 2% from 18.50 million tons in FY25. Cement capacity utilisation decreased from 77% in FY25 to 74% in FY26, due to a 2 MTPA capacity increase in February 2026. EBITDA for the year improved significantly to ₹1,482 crore from ₹1,276 crore in the previous year, with the blended EBITDA per ton rising to ₹788 from ₹690.

Key Financial Metrics

The following table outlines the key standalone financial figures for the full year:

Operational Highlights and Exceptional Items

The financial results included exceptional items amounting to ₹553 crore for the year. This primarily comprised a profit of ₹574 crore from the sale of surplus lands and an expense of ₹20 crore due to the Social Security Code, 2025, relating to past service costs. The company also managed costs effectively, with power & fuel cost per ton decreasing to ₹1,098 from ₹1,123 in the previous year, aided by a higher green power share of 40%.

Debt and Capex

The company reduced its net debt by ₹817 crore during FY26, bringing the total to ₹3,664 crore as of March 31, 2026. The net debt to EBITDA ratio improved to 2.47 times from 3.51 times in FY25. For FY26, the company incurred ₹997 crore towards capital expenditure, with guidance set at ₹800 crore for FY27. The company plans to achieve a cement capacity of approximately 31 MTPA through debottlenecking and expansion projects.

Two prominent brokerages have issued cautious ratings on ramco cements , with Jefferies maintaining a Hold and Kotak Institutional Equities retaining a Sell, both pointing to a Q4 EBITDA miss, weak volumes, and persistent competitive pressures in South India as key concerns.

Jefferies Maintains Hold Amid Cost Pressures and Market Share Losses

Jefferies has kept its Hold rating on Ramco Cements with a target price of ₹920, highlighting a combination of operational and structural challenges. The brokerage noted sustained market share losses in South India as a significant headwind, compounding the impact of weak Q4 volumes that contributed to the EBITDA miss.

A key concern flagged by Jefferies is the rise in war-related cost inflation, which has exceeded ₹500 per tonne. The brokerage observed that price hikes implemented by the company have been insufficient to fully absorb this cost escalation, thereby weighing on margins. On a relatively positive note, Jefferies acknowledged the company's ongoing efforts to manage leverage, including a strategy of lower capital expenditure and the monetization of non-core assets.

Kotak Institutional Equities Retains Sell on Valuation and Earnings Volatility

Kotak Institutional Equities has maintained its Sell rating on Ramco Cements with a target price of ₹690, citing a Q4 EBITDA miss driven by weak volumes and compressed margins. The brokerage also highlighted cautious capex guidance from the company, even as it pursues expansion plans to reach a capacity of 31 mtpa by the end of FY27.

Kotak pointed to the company's focus on debt reduction as a strategic priority, while also flagging that earnings remain volatile due to regional competitive intensity — a challenge that continues to weigh on the company's performance in its core markets.

Analyst Consensus Points to Near-Term Headwinds

Both brokerages converge on the view that Ramco Cements faces meaningful near-term challenges. The combination of an EBITDA miss, insufficient price hikes to counter cost inflation, market share erosion in South India, and a cautious capital expenditure outlook collectively underpin the bearish-to-neutral stance from both Jefferies and Kotak. The divergence in target prices — ₹920 from Jefferies and ₹690 from Kotak — reflects differing assessments of the company's valuation and recovery trajectory, though neither brokerage has upgraded its outlook at this stage.