Costs outpaced revenue as Ramco Cements' margin fell 5.69 percentage points
Sequentially, revenue fell 12.92% and costs fell less at 12.19%, while the tax rate rose 8.04 percentage points.
Filed 07 Aug 2026, 18:04 IST · after market close · The Ramco Cements Ltd (RAMCOCEM)
Key takeaways
- Revenue grew 9.60% YoY, but expenses rose 17.30%, cutting operating margin by 5.69 percentage points.
- Net profit fell 63.06% YoY even as other income rose 219.41% and contributed 48.21% of pre-tax profit.
- At 13.48%, operating margin was 4.93 percentage points below the 18.41% median for 62 reporting Commodities peers.
Price around the results
Revenue growth did not translate into consolidated profit
The consolidated quarter delivered 9.60% YoY revenue growth, but operating profit fell 22.91% as expenses expanded faster than sales. Pre-tax profit declined 64.69% and net profit fell 63.06%, despite interest costs decreasing 8.75% YoY. Other income rose 219.41% but still accounted for 48.21% of pre-tax profit, making reported profit less representative of operating earnings.
Sequential sales fell faster than profits, but costs still outpaced revenue
QoQ revenue declined 12.92%, while expenses decreased 12.19%, resulting in a 0.72 percentage-point contraction in operating margin. Interest was broadly unchanged, rising 0.37%, and depreciation increased 0.96%, limiting the benefit from lower operating costs. The 8.04 percentage-point rise in the tax rate and the 78.24% fall in other income also weighed on sequential pre-tax profit.
Margin remains below peers after a brief Q4FY26 rebound
Operating margin has fallen from 19.17% in Q1FY26 to 13.48% now, with a brief recovery to 14.20% in Q4FY26 before slipping again. Ramco Cements' margin was 4.93 percentage points below the 18.41% median among 62 reported Commodities peers, placing it 13th from the bottom. The 3.41 percentage-point YoY decline in the tax rate partly cushioned the fall in net profit.
No immediate stock reaction after the after-close filing
The consolidated results were filed after market close, so there was no immediate market reaction in the reported period. Across eight previous result reactions, the stock rose five times and fell three times, with a median absolute move of 3.02%. The historical response has therefore been mixed, rather than consistently positive or negative.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,273 cr | ₹2,610 cr | -12.92% | +9.60% |
| Other income | ₹20 cr | ₹90 cr | -78.24% | +219.41% |
| Expenses | ₹1,967 cr | ₹2,240 cr | -12.19% | +17.30% |
| Operating profit | ₹306 cr | ₹371 cr | -17.32% | -22.91% |
| Operating margin (%) | 13.48% | 14.20% | — | — |
| Interest | ₹96 cr | ₹95 cr | +0.37% | -8.75% |
| Depreciation | ₹190 cr | ₹188 cr | +0.96% | +3.23% |
| Profit before tax | ₹41 cr | ₹177 cr | -77.10% | -64.69% |
| Tax | ₹9 cr | ₹27 cr | -64.84% | -69.24% |
| Net profit | ₹31 cr | ₹151 cr | -79.27% | -63.06% |
| EPS (₹) | ₹1.32 | ₹6.38 | -79.31% | -63.33% |
Operating margin of 13.48% compares with a Commodities sector median of 18.41% across 62 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 13.48% toward the 18.41% peer median.
- Whether expenses grow more slowly than revenue after rising 17.30% YoY against 9.60% revenue growth.
- Whether other income remains a large contributor after accounting for 48.21% of pre-tax profit.