Ramco Cements' Q4 profit gets a large lift from other income
Operating margin improved sequentially, but net profit fell 60.92% from Q3 as other income dropped 81.89%; the stock was down 4.72% after five sessions.
Filed 22 May 2026, 19:34 IST · after market close · The Ramco Cements Ltd (RAMCOCEM)
Key takeaways
- Consolidated Q4FY26 net profit rose 487.60% year on year, but other income contributed 50.72% of pre-tax profit.
- Operating margin recovered 0.91 percentage points sequentially to 14.20% as revenue growth of 23.97% outpaced expense growth of 22.66%.
- The stock fell 4.72% five sessions after the results, versus a 3.02% median absolute move after the company's last eight results.
Price around the results
Other income drove the sharp year-on-year profit increase
Consolidated revenue grew 8.89% year on year while expenses rose 7.78%, lifting operating profit 16.11%. Net profit nevertheless rose 487.60%, helped by other income increasing 273.16%, interest falling 15.97% and the tax rate dropping 30.37 percentage points. Other income accounted for 50.72% of pre-tax profit, making the reported profit growth materially less operational in quality.
Sequential profit fell despite better operating margins
Revenue increased 23.97% from Q3 and expenses grew 22.66%, allowing operating margin to expand 0.91 percentage points. Pre-tax profit still fell 63.32% and net profit declined 60.92% because other income dropped 81.89% from Q3. The lower tax rate, down 5.23 percentage points, partly cushioned that decline.
Margin recovered after three quarterly declines but remains below peers
Operating margin fell from 19.17% in Q1FY26 to 17.33% in Q2FY26 and 13.29% in Q3FY26 before recovering to 14.20% in Q4FY26. This breaks a three-quarter decline, but the margin was 4.57 percentage points below the 18.77% median for 51 reported Commodities-sector peers. Ramco Cements stood 15th from the bottom on this measure.
The market reaction was weaker than the stock's usual results response
The stock fell 0.89% on the initial reaction day, 2.51% after one session and 4.72% after five sessions. That five-session decline was larger than the 3.02% median absolute move across the last eight results, when the stock rose six times and fell twice.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,610 cr | ₹2,106 cr | +23.97% | +8.89% |
| Other income | ₹90 cr | ₹497 cr | -81.89% | +273.16% |
| Expenses | ₹2,240 cr | ₹1,826 cr | +22.66% | +7.78% |
| Operating profit | ₹371 cr | ₹280 cr | +32.48% | +16.11% |
| Operating margin (%) | 14.20% | 13.29% | — | — |
| Interest | ₹95 cr | ₹108 cr | -11.82% | -15.97% |
| Depreciation | ₹188 cr | ₹185 cr | +1.70% | +2.73% |
| Profit before tax | ₹177 cr | ₹484 cr | -63.32% | +277.54% |
| Tax | ₹27 cr | ₹98 cr | -72.80% | +24.94% |
| Net profit | ₹151 cr | ₹386 cr | -60.92% | +487.60% |
| EPS (₹) | ₹6.38 | ₹16.31 | -60.88% | +450.00% |
Operating margin of 14.20% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.89% | -2.20% |
| Next session | -2.51% | — |
| 5 sessions | -4.72% | -3.72% |
| 15 sessions | -3.54% | — |
| 30 sessions | -0.65% | — |
Volume on the results session was 1.27× its 20-day average.
What to watch
- Whether operating margin moves back above 14.20% after the Q4FY26 recovery.
- Whether other income's contribution to pre-tax profit falls below 50.72%.
- Whether interest remains below the Q4FY26 level after declining 15.97% year on year.