Ramco Industries Limited , a leading player in the building materials sector, has reported a robust financial performance for the second quarter of fiscal year 2025-26, alongside announcing plans for expansion.

Financial Highlights

The company's consolidated net profit for Q2 FY2025-26 surged to ₹203.6 million, marking a significant 55% increase from ₹131.5 million in the same period last year. This impressive growth was accompanied by a 3.7% year-over-year rise in revenue, which reached ₹3.66 billion compared to ₹3.53 billion in Q2 FY2024-25.

Ramco Industries also demonstrated strong operational efficiency, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) climbing to ₹523.5 million from ₹414.9 million in the corresponding quarter. The EBITDA margin expanded notably to 14.32% from 11.75% year-over-year, indicating improved profitability.

Expansion Plans

In a strategic move to capitalize on market demand, Ramco Industries has announced plans to set up a new manufacturing facility. The Board of Directors has approved the establishment of a Fibre Cement Board plant in Maksi, Madhya Pradesh. The new facility will have an installed capacity of 58,000 M.T. per annum and is expected to be completed within 12 months.

The project, with an estimated cost of ₹180 crore, will be financed through a combination of term loans (₹135 crore) and internal accruals. This expansion aligns with the company's growth strategy and its response to the increasing demand for fibre cement boards in the construction industry.

Market Outlook

The company's decision to invest in new capacity suggests confidence in the future demand for building materials. This expansion could potentially strengthen Ramco Industries' market position and contribute to long-term growth.

As the construction sector continues to evolve with a focus on sustainable and durable materials, Ramco Industries' investment in fibre cement board production may be well-timed to meet changing market preferences.

The company's improved financial performance and strategic expansion plans indicate a positive outlook for Ramco Industries in the coming quarters, subject to overall economic conditions and sector-specific trends.

Ramco Systems , a global enterprise software provider, has reported a significant turnaround in its financial performance for the second quarter of the fiscal year. The company's latest results showcase a remarkable improvement across key financial metrics, indicating a robust recovery and strengthened market position.

Financial Highlights

Ramco Systems has delivered an impressive turnaround in its Q2 results, posting a consolidated net profit of 126.00 crore rupees, a significant improvement from the loss of 97.00 crore rupees reported in the same quarter of the previous year. This represents a substantial positive swing of 223.00 crore rupees in the company's bottom line.

Revenue Growth and Operational Efficiency

The company's revenue grew to 176.00 crore rupees from 142.00 crore rupees year-over-year, marking a 24% increase. This growth in top-line performance indicates a strong demand for Ramco's software solutions and services.

Notably, Ramco Systems has more than doubled its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to 39.40 crore rupees, up from 16.60 crore rupees in the corresponding quarter last year. This significant improvement in EBITDA suggests enhanced operational efficiency and cost management.

Margin Expansion

The EBITDA margin expanded substantially to 22.42% from 11.65% in the previous year's corresponding quarter. This near-doubling of the EBITDA margin demonstrates the company's ability to improve profitability while growing its revenue base.

Regulatory Compliance

While Ramco Systems has shown strong financial performance, it's worth noting that Ramco Industries Limited has recently received orders from the Tamil Nadu – Windmill GST authority regarding GST impact on Corporate Guarantees provided to a group company. The total penalty as per six orders amounts to 45.82 crore rupees. However, it's important to clarify that this regulatory matter pertains to Ramco Industries Limited and not directly to Ramco Systems, the subject of this financial report.

The remarkable turnaround in Ramco Systems' Q2 results, characterized by significant improvements in profit, revenue, and operational efficiency, signals a positive trajectory for the company. As the tech sector continues to evolve, Ramco Systems appears well-positioned to capitalize on market opportunities and maintain its growth momentum.