Ramco Cements reported robust financial performance for the third quarter of fiscal year 2026, with net profit after tax surging 19% year-on-year to Rs. 386.91 crores despite a decline in operational revenue. The company's results were significantly enhanced by exceptional gains, primarily from land sales, which more than offset the impact of reduced cement sales volumes.

Financial Performance Overview

The company's standalone financial results for Q3FY26 showed mixed operational performance with strong bottom-line growth driven by non-operational gains.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company demonstrated strong year-on-year growth across key financial metrics.

Exceptional Items Impact

The quarter's performance was significantly influenced by exceptional items totaling Rs. 479.05 crores, compared to Rs. 329.00 crores in Q3FY25. The major components included a substantial profit of Rs. 505.62 crores from the sale of surplus lands, which was partially offset by Rs. 26.57 crores impact due to past service cost arising from the implementation of new Social Security Codes.

Operational Expenses and Margins

Total expenses for Q3FY26 increased to Rs. 2,112.52 crores from Rs. 1,983.48 crores in the previous year. Key expense categories showed varying trends:

• Power and Fuel: Rs. 498.99 crores (vs Rs. 463.24 crores in Q3FY25)
• Transportation & Handling: Rs. 481.53 crores (vs Rs. 466.03 crores in Q3FY25)
• Employee Benefits: Rs. 135.04 crores (vs Rs. 131.60 crores in Q3FY25)
• Finance Costs: Rs. 108.00 crores (vs Rs. 112.51 crores in Q3FY25)

Key Financial Ratios

The company maintained healthy financial ratios as of December 31, 2025:

Regulatory and Legal Updates

The company continues to contest the Competition Commission of India penalty of Rs. 258.63 crores imposed in 2016 for alleged cartelisation. The matter remains pending before the Supreme Court, with the company having deposited Rs. 25.86 crores (10% of the penalty) as directed. Based on legal opinion, no provision has been made for this contingency.

The implementation of new Labour Codes resulted in increased gratuity and compensated absences obligations of Rs. 26.57 crores, which has been treated as an exceptional item due to its non-recurring nature arising from legislative changes.

Ramco Cements has received approval from the Government of Andhra Pradesh to include quartzite mineral in its existing limestone mining lease. The company received the approval on January 3, 2026, at 4:20 PM, as disclosed in its regulatory filing under SEBI-LODR Regulation 30.

Regulatory Approval Details

The Industries & Commerce Department of the Government of Andhra Pradesh granted approval for quartzite mineral inclusion in the company's existing mining operations. The approval covers limestone mining areas in Kalavataka and Kotapadu villages, Kolimigundla Mandal, Nandyal District.

Strategic Utilization and Impact

According to the company's disclosure, the extracted quartzite will be utilized for manufactured sand and pozzolanic additives in the cement industry, or for other industrial applications as they arise in future. The quantum of mineable quartzite reserves has not yet been determined.

Regulatory Compliance Framework

The approval is subject to satisfaction of all terms and conditions laid down under the Mines and Minerals (Development and Regulation) Amendment Act, 2015, and other standing instructions and guidelines issued by the Government of India and State Government from time to time. The company filed the disclosure under SEBI Circular No: SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Business Impact and Market Response

The regulatory approval represents a significant step in securing the company's raw material supply chain, providing access to quartzite mining that will help ensure consistent availability of key input materials for manufacturing operations. The extended validity period until 2053 provides long-term operational certainty for the company's mining activities in the region.