The Ramco Cement Q2 FY27 Results (NSE: RAMCOCEM)
Signal: Steady quarter
The read
The trajectory improved on the top line, with consolidated total income at ₹2,469.80 crore, +10.0% YoY, but the operating recovery stalled sequentially as margin fell to 14% from 18%; PAT of ₹40.46 crore remained 48.0% below last year, while standalone PAT of ₹38.18 crore was only ₹2.28 crore below consolidated PAT, so subsidiaries are not the source of the weakness.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,469.8 Cr | +10.0% | +8.3% |
| EBIT | ₹143.15 Cr | -32.2% | |
| Net profit | ₹40.46 Cr | -48.0% | |
| EPS | ₹1.71 | -47.7% | |
| EBIT margin | 14% |
P&L walk
Consolidated total income was ₹2,469.80 crore, +10.0% YoY and +8.3% QoQ, while the 14% operating margin was flat YoY but down 400bps QoQ; PAT fell to ₹40.46 crore, -48.0% YoY, broadly tracking the decline in pre-exceptional operating profit.
Key positives
- Consolidated total income reached ₹2,469.80 crore, +10.0% YoY and +8.3% QoQ, reversing the prior period's weaker revenue trajectory.
- Gross margin expanded to approximately 81.0%, up 110bps YoY, as materials, clinker transfer and freight rose 3.8% against 10.0% total-income growth.
- Finance costs declined 16.6% YoY to ₹92.93 crore, supporting profit below the operating line.
- H1FY27 operating cash flow was ₹645.74 crore, remaining positive and broadly comparable with ₹653.49 crore in H1FY26.
Key concerns
- Operating margin fell 400bps QoQ to 14% despite 8.3% sequential total-income growth, showing weak conversion of revenue recovery into operating profit.
- PAT fell 48.0% YoY to ₹40.46 crore because pre-exceptional profit declined 49.7% YoY to ₹50.22 crore; the ₹4.80 crore exceptional gain provided only limited support.
- PPE plus CWIP declined to ₹14,995.68 crore from ₹15,041.15 crore at March 2026 while depreciation rose 3.8% YoY to ₹190.24 crore, requiring monitoring of asset utilisation and capitalisation.
- Operating-cost growth of 16.6% YoY outpaced total-income growth of 10.0%, offsetting the 110bps gross-margin improvement.
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