Ramco Cements' Q2 profit drops 48.05% as costs outpace revenue
Revenue rose 10.01% YoY, but operating margin fell 4.08 percentage points; other income contributed 21.72% of pre-tax profit.
Filed 05 Nov 2026, 18:09 IST · after market close · The Ramco Cements Ltd (RAMCOCEM)
Key takeaways
- Consolidated net profit fell 48.05% YoY as expenses grew +15.44% against revenue growth of +10.01%, cutting operating margin by 4.08 percentage points.
- Sequential revenue growth of +8.35% was slightly slower than expense growth of +8.63%, narrowing operating margin by 0.23 percentage points.
- Other income contributed 21.72% of pre-tax profit, while the YoY tax-rate increase of 3.06 percentage points added to the pressure on earnings.
Price around the results
Cost growth erased the benefit of higher revenue
The consolidated result saw revenue rise +10.01% YoY, but expenses grew faster at +15.44%. That gap reduced operating profit by 15.89% and pulled operating margin down 4.08 percentage points to 13.25%. Net profit fell 48.05%, while EPS declined 47.71%.
Sequential growth came with another margin decline
Revenue increased +8.35% QoQ, but expenses grew +8.63%, leading to a further 0.23 percentage-point decline in operating margin. Lower interest expense, down 2.77%, helped pre-tax profit rise 35.80% sequentially, but the tax rate increased 3.57 percentage points and limited the flow-through to net profit, which rose 29.51%.
Margin remains above the commodities peer median
Operating margin has fallen from 19.17% in Q1FY26 to 13.25% in Q2FY27, despite the 14.20% recorded in Q4FY26; the latest quarter marks a second consecutive sequential decline. Ramco Cements was 0.40 percentage points above the 12.85% median among 126 commodities peers that had reported the quarter.
Other income remains material to pre-tax profit
Other income accounted for 21.72% of pre-tax profit, so reported earnings were not driven solely by operations. The YoY tax-rate increase of 3.06 percentage points also amplified the decline in net profit, even as interest expense fell 16.56%.
No immediate stock reaction after the after-close filing
The results were filed after market close, so there is no immediate market reaction to assess. Across eight recent result reactions, the stock rose five times and fell three times, with a median absolute move of 2.14%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,463 cr | ₹2,273 cr | +8.35% | +10.01% |
| Other income | ₹12 cr | ₹20 cr | -38.82% | +38.98% |
| Expenses | ₹2,136 cr | ₹1,967 cr | +8.63% | +15.44% |
| Operating profit | ₹326 cr | ₹306 cr | +6.49% | -15.89% |
| Operating margin (%) | 13.25% | 13.48% | — | — |
| Interest | ₹93 cr | ₹96 cr | -2.77% | -16.56% |
| Depreciation | ₹190 cr | ₹190 cr | +0.21% | +3.76% |
| Profit before tax | ₹55 cr | ₹41 cr | +35.80% | -45.88% |
| Tax | ₹15 cr | ₹9 cr | +56.78% | -38.87% |
| Net profit | ₹40 cr | ₹31 cr | +29.51% | -48.05% |
| EPS (₹) | ₹1.71 | ₹1.32 | +29.55% | -47.71% |
Operating margin of 13.25% compares with a Commodities sector median of 12.85% across 126 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 13.25% after its 0.23 percentage-point sequential decline.
- Whether expenses continue to grow faster than revenue after the YoY gap of +15.44% versus +10.01%.
- Whether other income remains a material contributor after accounting for 21.72% of pre-tax profit.