Ramco Industries Limited has published its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26, forming part of the company's Sixty First Annual Report. The report is prepared on a standalone basis and covers the period from 1st April 2025 to 31st March 2026. Limited assurance for the BRSR Core has been obtained from TUV-SUD South Asia Pvt Ltd. The company is headquartered at Auras Corporate Centre, Chennai, and is registered at Rajapalayam, Virudhunagar, Tamil Nadu, with a paid-up capital of ₹8.68 crore.

Business Overview and Operations

Ramco Industries operates primarily in two business segments — Building Products and Cotton Yarn — which together account for 90% of the company's turnover. The building products division, comprising the manufacture of Fibre Cement Boards, Calcium Silicate Boards, and Insulation Boards, is the dominant contributor, while cotton yarn covers preparation and spinning of cotton fibre including blended cotton. Electric power generation using non-conventional sources (Wind Farm) accounts for 0.13% of turnover.

The company operates 10 building products plants and 1 textile division plant domestically, along with 1 corporate office, totalling 12 national locations. It also has 2 international plants and 1 international office. Markets served span 30 states nationally and 21 countries internationally. Export contribution to total turnover stood at 5.09% for FY2025-26, with the spinning division included in this figure for the first time.

Workforce and Employee Well-Being

As at the end of FY2025-26, Ramco Industries reported a total of 847 permanent employees and 3,035 workers (permanent and other than permanent combined). The spinning division has been included in workforce reporting for the first time this year. All 847 permanent employees are covered under both health insurance and accident insurance. Maternity benefits are extended to all 11 female permanent employees. The well-being expenditure as a percentage of total revenue stood at 0.73% in FY2025-26, compared to 0.74% in FY2024-25.

The Board of Directors comprises 8 members, of whom 1 is female (12.50%). None of the 4 Key Management Personnel are female. The overall employee turnover rate for permanent employees in FY2025-26 was 14.01%, compared to 16.91% in FY2024-25 and 25.36% in FY2023-24. For permanent workers, the turnover rate was 4.11% in FY2025-26, compared to 2.63% in FY2024-25.

Health, Safety, and Human Rights

Ramco Industries reported zero lost-time injuries, zero fatalities, and zero high-consequence work-related injuries for both employees and workers during FY2025-26. The Lost Time Injury Frequency Rate (LTIFR) for workers improved to 0 from 0.191 in the previous year. The company has implemented an Occupational Health and Safety Management System aligned with ISO 45001 for selected sites. All manufacturing units are equipped with Occupational Health Centres and ambulance facilities.

All plants and offices were assessed for health and safety practices and working conditions at 100% coverage, assessed by an internal team, external consultant (3i Quality Consultant), and Inspector of Factories. No complaints related to working conditions or health and safety were filed by employees or workers during FY2025-26. Human rights training was provided to 120 employees (14.17%) and 304 workers (10.02%) during the year. All employees and workers — permanent and other than permanent — were paid above the statutory minimum wage.

Environmental Performance

The company's total energy consumption for FY2025-26 was 651,091.27 Giga Joules, compared to 565,922.70 Giga Joules in FY2024-25. Renewable energy sources contributed 111,953.90 Giga Joules, while non-renewable sources accounted for 539,137.37 Giga Joules. Energy intensity per rupee of turnover was 4.51×10⁻⁵ in FY2025-26 versus 4.08×10⁻⁵ in FY2024-25.

Total water withdrawal was 520,759.89 kilolitres in FY2025-26, sourced from surface water (143,170 kilolitres), groundwater (351,186.3 kilolitres), and third-party water (26,403.5 kilolitres). The company has implemented a Zero Liquid Discharge mechanism, with 100% of process reject water recycled. Total waste generated was 76.36 metric tonnes, of which 29.37 metric tonnes were recovered through recycling (26.70 metric tonnes) and reuse (2.67 metric tonnes), with zero waste sent for incineration or landfilling.

Governance, Compliance, and Stakeholder Engagement

Ramco Industries holds policies covering eight of the nine NGRBC principles; Principle 7 (responsible policy advocacy) is not applicable as the company does not engage in lobbying activities. Policies for Principles 2, 3, and 6 have been independently assessed by M/s. TUV-SUD South Asia Pvt Ltd. and Bureau of Indian Standards. The company reported GST-related monetary penalties totalling ₹2,000, ₹213,620, and ₹116,970 under Principle 1 during FY2025-26, with appeals filed for two of the three cases. No non-monetary penalties, settlements, or compounding fees were recorded.

Customer complaints received during FY2025-26 stood at 5,685, with zero complaints pending resolution at year-end, compared to 5,646 complaints received in FY2024-25. The company's R&D investment in technologies to improve environmental and social impacts stood at 1.37% of total R&D in FY2025-26, while the corresponding CAPEX allocation was 3%. Purchases from trading houses as a percentage of total purchases rose to 25.32% in FY2025-26 from 23.00% in FY2024-25, while sales to dealers and distributors as a percentage of total sales increased to 86.64% from 81.71%. The company's turnover for CSR applicability purposes was ₹14,435,051,139.00 and net worth was ₹13,291,081,668.00.

Ramco Industries Limited has reported its audited standalone financial results for the year ended 31st March 2026, reflecting broad-based improvement across key financial metrics. Standalone net profit after tax (PAT) rose to ₹111.26 crores from ₹88.36 crores in the previous year, while revenue from operations grew to ₹1,443.50 crores from ₹1,402.40 crores. The Board of Directors has recommended a dividend of ₹1.25 per share for the year, compared to ₹1.00 per share in the prior year, with a cash outflow of ₹10.85 crores and a dividend payout ratio of 9.75%.

Standalone Financial Performance

The company's standalone financial results for FY 2025-26 showed improvement across revenue, profitability, and operating efficiency metrics. The following table summarises the key standalone financial results:

EBIDTA for the year stood at ₹197.51 crores, compared to ₹165.42 crores in the previous year. Cash generation improved to ₹180.00 crores from ₹148.64 crores. The operating profit ratio improved to 13.68% from 11.80% in the prior year.

Consolidated Financial Performance

On a consolidated basis, including subsidiaries and the equity share of associates, the company reported a significantly stronger performance. The consolidated net profit after tax amounted to ₹135.63 crores for the year ended 31st March 2026, compared to ₹93.65 crores in the previous year. Including the share of profit of associates of ₹170.63 crores, total consolidated profit for the year reached ₹306.26 crores against ₹180.91 crores in the prior year.

The Consolidated Total Comprehensive Income for the year under review was ₹291.42 crores as against ₹173.69 crores of the previous year.

Business Division Performance

Building Products Division

The Building Products Division remained the dominant contributor, accounting for 83.75% of the company's turnover. Fibre Cement Sheets and Boards recorded the following operational performance:

Fibre Cement (FC) Sheet sales volume grew by approximately 6% compared to the previous year. The Fibre Cement Boards segment achieved 105% of its annual target during FY 2025-26, recording 1.26 lakh MT in the Non-Asbestos category, with 23% volume growth over the prior year. The segment also achieved all-time high overall monthly volumes of 12,300 MT and a record-high HILUX volume of 5,144 MT during March 2026. Export business registered 60% volume growth, driven by strong performance in Nepal, South Africa, and the U.K.

Wind Energy Division

Wind energy generation increased by 14% compared to the previous year from the existing 15 Wind Mills. Key operational metrics are as follows:

Cotton Yarn Division — Sri Ramco Spinners

During FY 2025-26, the Cotton Yarn Division produced 30.76 Lakh Kgs. of Cotton Yarn, compared to 24.22 Lakh Kgs. in the previous year. The unit sold yarn at 35.49 Lakh Kgs. (including traded yarn) during the year under review, as against 36.65 Lakh Kgs. during FY 2024-25. The division secured an "A+ Grade" in Social Audit Compliances.

Overseas Subsidiaries

At a consolidated level, the net sales of Sri Ramco Lanka (Private) Limited and Sri Ramco Roofings Lanka (Private) Limited were SLR 1336.34 Crores (INR 387.94 Crores), as against SLR 1,063.20 Crores (INR 301.95 Crores) during the corresponding previous year.

Capital Structure and Debt Position

The company's financial position strengthened considerably during the year. Total borrowings declined to ₹169.20 crores from ₹255.70 crores in the previous year, reflecting the company's focus on debt reduction. The debt-equity ratio improved to 0.13 times from 0.20 times. The following table presents key financial ratios for the year:

The decrease in Debt Service Coverage Ratio by 46% was attributed to an increase in loan repayment during the year. The decrease in Debt-Equity Ratio by 35% was primarily due to the decrease in borrowings.

During the year, 32,500 equity shares of ₹1/- each were allotted on exercise of employee stock options, increasing the paid-up capital to ₹8,68,41,560 consisting of 8,68,41,560 shares of ₹1/- each. The company also partly redeemed ₹30 Crores of its Non-Convertible Debentures, with the present outstanding standing at ₹70.00 Crores.

Corporate Social Responsibility

The CSR obligation for FY 2025-26 was ₹1.31 Crores (after adjusting the previous year excess of ₹40.80 lakhs from ₹1.72 Crores, which is 2% of average net profit of past 3 years). Against this, the company spent ₹1.90 Crores on CSR activities spanning healthcare, art and culture, education, rural development, sports promotion, and environmental sustainability. The CSR Committee recommended carrying forward and setting off the excess amount of ₹0.59 Crores to FY 2026-27.

Annual General Meeting

The 61st Annual General Meeting of the company is scheduled to be held on Thursday, 20th August 2026, through Video Conferencing. The record date for dividend eligibility is 13th August 2026, and the dividend payment date is 20th August 2026 onwards.