Presently, on the cost side, pet coke and gypsum prices have increased which will have an adverse impact of Rs. 400 per ton of cement, the company said.
Besides, due to increase in the polymer prices, the packing material costs have increased by Rs.120 per ton of cement. Further, diesel prices have increased by Rs.4 per litre with effect from 19 May. This will have an impact of Rs.50 per ton of cement in the logistics cost for both inbound and outbound movement, Ramco said.
It may be noted that these impacts are determined based on current market prices of pet coke, gypsum and diesel. Any further price increase will have further cost push, the company added.
Given existing fuel inventories, the full impact of higher fuel costs is not expected to reflect in Q1FY27 and it will be reflected from Q2FY27 onwards, the company said.
However, Ramco said packing material and diesel cost increases, will be visible in Q1FY27 itself.
Cement outlook:
India’s real GDP grew 7.6 per cent in FY26, with FY27 growth projected at 6.9 per cent, weighed down by energy disruptions, higher oil prices, and currency volatility. Cement demand is expected to grow 6-7 per cent, in line with GDP, Ramco said.
Key demand drivers include the Union budget’s Rs.12.2 lakh crores capex outlay and strong rural incomes supported by a good rabi crop and healthy reservoir levels, it said.
Key risks:
Key risks include elevated fuel and logistics costs due to West Asia conflict, USD and commodity price volatility, and uncertainty around cement pricing amid rising capacity and competitive pressure, the company said.
Further, due to state elections in Tamil Nadu, Kerala and West Bengal during April 2026, the demand scenario was muted, it added.
Prices:
Cement prices in April 2026 have improved by Rs.15 per bag, in the trade segment and Rs.25 per bag in the non-trade segment over the March 2026 exit price, Ramco said.
The company expects the cement prices to improve further. However, it said as of today, prices continue to remain under pressure due to competitive intensity.
FY2026 performance
Ramco’s net revenue for FY 2026 grew 6 per cent to Rs 9,056 crore in FY2026 from Rs 8,539 crore in FY2025, driven by improvement in prices by around 4 per cent year on year.
During FY26, cement revenue has grown by 5 per cent, whereas the revenue from construction chemicals have grown by 66 per cent, the company said.
Blended EBIDTA per ton for FY26 stood at Rs.788, as against Rs.690 during FY25.
Tamil Nadu levy impacts cost:
Ramco said cost of raw materials increased 7 per cent to Rs 1,023 per ton in FY2026 from Rs 956 per ton in FY2025. This was mainly due to levy of mineral bearing land tax (MBLT) of Rs.160 per ton of limestone in Tamil Nadu from April 2025, which translate into impact in variable cost of Rs.86 per ton of cement.
It may be noted that Tamil Nadu is the only state where such a huge levy is imposed. The company along with other cement companies have represented to the Tamil Nadu Government to reduce the levy, which is pending, Ramco said.
Green Power helps
Ramco said the power & fuel cost has decreased to Rs 1,098 per ton of cement in FY2026 from Rs 1,123 in the comparable period last year.
The petcoke mix for FY26 stands at 47 per cent as against 63 per cent during FY25.
The usage of green power share has increased from 36 per cent in FY25 to 40 per cent in FY26. The high generation of wind power during the year has helped to manage the overall power & fuel cost, the company said.
All green power assets are 100 per cent owned by the Company / wholly owned subsidiary company, with no dependence on group captive or third party ownership, Ramco said.
Net Profit:
The company’s net profit stood at Rs 694 crore in FY2026, when compared to Rs 417 crore in FY2025.
Ramco has earned profit of Rs.574 crore in FY26 from sale of surplus lands, which is recognised under exceptional items. Further, in view of change in definition of wages under new labour codes, 2025, the company expensed Rs.20 crores towards past service cost for gratuity and compensated absences, under exceptional items.
The net exceptional items for FY26 stood at Rs.553 crores as against Rs.340 crores in FY25.
CAPEX
Ramco has given a capex guidance of  Rs.800 Crore for FY2027. In FY2026, it incurred Rs.997 crore towards capex including maintenance capex.
The company plans to achieve cement capacity of 31 million tonnes per annum including debottlenecking of existing integrated units and brown field expansion at Kolimigundala during FY27.
Asset monetisation:
Over the past two years, the company has monetized Rs.1,098 crore through the sale of noncore assets.
Active steps are under progress to dispose of the remaining identified noncore assets, valued at Rs. l50 Crores, in the near term, Ramco said.