Ramco Cements Limited , a prominent player in the Indian cement industry, is facing additional tax challenges as the Income Tax Department files new appeals against the company at the Madras High Court. These appeals, covering multiple assessment years, add to the company's existing tax disputes.

Key Points of the Tax Appeals

The Income Tax Department has raised several issues in its appeals:

1. Revenue Expenditure Classification: The department is challenging the classification of certain expenses as revenue expenditure.
2. Industrial Promotion Assistance Treatment: There's a dispute over the treatment of industrial promotion assistance received by the company.

Financial Implications

The tax appeals involve significant financial stakes for Ramco Cements:

Legal Proceedings

• The appeals for both assessment years 2015-16 and 2011-12 have been admitted by the Madras High Court.
• These appeals are in addition to existing similar disputes worth Rs. 29.20 crores from previous years, also pending at the High Court level.

Ongoing Litigation Context

Ramco Cements has been dealing with tax-related litigation for several years:

• For the assessment year 2011-12, the company faces appeals totaling Rs. 11.11 crores.
• The appeals for 2015-16 amount to Rs. 17.82 crores.
• Additional similar disputes worth Rs. 29.20 crores are pending at the High Court.

These ongoing appeals indicate a pattern of tax disputes for the company across multiple assessment years.

Implications for Investors

The mounting tax disputes represent a potential financial liability for Ramco Cements. The total disputed amount of Rs. 58.13 crores could impact the company's financial position if the rulings are unfavorable.

Investors and stakeholders should closely monitor the progress of these cases, as they may affect the company's future tax obligations and overall financial health.

Ramco Cements continues to update its stakeholders through regulatory filings, demonstrating its commitment to transparency in the face of these ongoing tax challenges.

Ramco Cements Limited has announced its financial results for the quarter ended September 30, 2025, showcasing significant growth in profitability despite challenges in sales volume.

Financial Performance

Ramco Cements reported a substantial increase in profit before tax, which rose by 187% to ₹100.24 crores in Q2FY26, compared to ₹34.97 crores in Q2FY25. The company's revenue grew by 9% year-on-year, reaching ₹2,049.50 crores.

For the quarter ended September 30, 2025, Ramco Cements reported:

The company's EBITDA increased by 22% to ₹323.39 crores, with margins improving to 16%.

Operational Highlights

• Cement sales volume remained relatively flat at 44.00 lakh tons compared to 44.02 lakh tons in Q2FY25.
• Capacity utilization improved to 68% from 65% in the previous year's quarter.
• Average cement prices improved by 7% year-on-year but declined 3% sequentially.
• Green power usage increased to 48% in Q2FY26 from 39% in Q2FY25, contributing to reduced power costs.

Cost Factors

• Raw material costs increased due to a mineral bearing land tax levy of ₹160 per ton of limestone in Tamil Nadu, impacting costs by ₹40 crores for the quarter.

Strategic Initiatives

• The company unveiled 'Hard Worker' as the new brand identity for its construction chemicals product range.
• Ramco Cements plans to achieve a 30 MTPA cement capacity by March 2026.

Outlook

Despite flat sales volume, Ramco Cements has demonstrated strong financial performance through improved pricing and operational efficiencies. The company's focus on increasing green power usage and expanding capacity indicates a strategic approach to long-term growth and sustainability in the competitive cement industry.