Ramco Cements tanks after mixed Q1; opportunity or red flag? Find out here

Ramco Cement share price post Q1 results: Cement maker Ramco Cements shares fell as much as 6.32 per cent to an intraday low of ₹1,064.25 on Friday, August 8, after the company reported a mixed set of earnings for the June quarter of FY26. 

 

At 10:41 AM, the stock was trading 5.38 per cent lower at ₹1,075, underperforming the broader BSE Sensex, which was down 0.54 per cent at 80,188.05.

 

The decline in the Ramco Cements stock price reflects concerns around the company’s muted volume growth and delayed asset monetisation, even as profitability showed improvement on a year-on-year and sequential basis.  READ STOCK MARKET LIVE UPDATES TODAY 

 

Ramco Cements Q1 results

 

Ramco Cements reported a 24-25 per cent Y-o-Y and Q-o-Q rise in Ebitda to ₹4,000 crore, driven by improved realisations and price hikes in the southern region. However, volumes were a key disappointment, declining 6-7 per cent Y-o-Y, mainly due to weak demand amid early monsoon in key markets like Kerala and eastern India. 

 

As a result, Ebitda per tonne, though up 32 per cent Y-o-Y to ₹966, was below street estimates.

 

The company’s profit after tax (PAT) rose ~142 per cent Y-o-Y to ₹860 crore, but missed analyst expectations by a wide margin (~27 per cent). Meanwhile, the construction chemical segment saw robust growth of 79 per cent Y-o-Y, albeit on a low base.

 

The management reiterated its plan to achieve 30 MTPA capacity by March 2026, supported by capacity additions at the Kurnool plant and expansions at existing units. It has monetised ₹5,000 crore from non-core assets so far, with the remainder expected to close by September 2025, a slight delay from the earlier July timeline.  ALSO READ | Kalpataru Projects International jumps 9% on posting 130% spike in PAT YoY

What brokerages are saying?

 

Motilal Oswal remained ‘Neutral’, citing weaker-than-expected volume performance. It cut FY26E/FY27E Ebitda estimates by 6 per cent/4 per cent and introduced FY28 projections. Valuing the stock at 13x Jun’27E EV/Ebitda, the brokerage arrived at a target price of ₹1,050.

 

Those at JM Financial noted that Q1 numbers were in line with its estimates, but pointed out the continued capex intensity and rising net debt, which stood at ₹4,610 crore as of June 2025. It cut FY26 Ebitda estimates by 3 per cent, while maintaining FY27–28 forecasts. The brokerage, however, kept a ‘Hold’ rating with a target price of ₹1,045, valuing the stock at 13x September 2027E EV/Ebitda.

 

Antique Stock Broking, meanwhile, flagged the impact of the newly imposed mineral land tax in Tamil Nadu, which hurt costs by ~₹100/tonne. It cut FY26-27 Ebitda estimates by 12-14 per cent, factoring in weaker volumes and profitability. The brokerage maintained a ‘Hold’ rating with a target price of ₹1,000, valuing the stock at 13x 1HFY28E EV/Ebitda.  ALSO READ | AU Small Finance Bank up 7%; first SFB to get RBI's universal bank approval

Ramco Cements outlook

 

While Ramco Cements has shown margin resilience due to better realisations, volume pressure, higher capex, and elevated debt levels remain key concerns. 

 

Most brokerages have retained a neutral-to-cautious view, with limited upside in the near term. Investors may await execution on capacity expansion and asset monetisation for a more constructive outlook.