Ramco Cements chemicals grew 26% in 1HFY27, ahead of cement

The Ramco Cements Limited reported construction-chemicals sales volume of 3.39 lakh tonnes in 1HFY27, up 26% year on year, against a 10% increase in cement sales to 92.18 lakh tonnes. Ramco Cements’ standalone construction-chemicals revenue rose 31% to Rs 216.88 crore, compared with 9% cement revenue growth.

How fast did Ramco Cements’ construction-chemicals sales grow in 1HFY27?

Ramco Cements’ construction-chemicals sales grew 26% year on year in 1HFY27, reaching 3.39 lakh tonnes from 2.68 lakh tonnes in 1HFY26. Cement sales increased by a lower 10% over the same period, rising from 83.98 lakh tonnes to 92.18 lakh tonnes. Construction chemicals added 0.71 lakh tonnes of sales volume, while cement added 8.20 lakh tonnes from a substantially larger base.

The quarterly trend was faster than the half-year rate. Construction-chemicals sales rose 38% year on year to 2.04 lakh tonnes in 2QFY27 from 1.48 lakh tonnes in 2QFY26, and were 51% above 1QFY27 sales of 1.35 lakh tonnes. Cement sales were 47.38 lakh tonnes in 2QFY27, up 8% year on year from 44.00 lakh tonnes and 6% sequentially from 44.80 lakh tonnes.

Ramco Cements also reported a 2 percentage point increase in cement capacity utilisation, to 71% in 1HFY27 from 69% in 1HFY26. Ordinary Portland Cement, or OPC, represented 34% of cement sales in 1HFY27 versus 33% a year earlier, while the business-to-business share increased to 32% from 31%.

How did Ramco Cements’ construction-chemicals revenue compare with cement revenue?

Ramco Cements’ standalone construction-chemicals revenue increased 31% year on year to Rs 216.88 crore in 1HFY27, compared with a 9% increase in cement revenue to Rs 4,510.37 crore. Construction chemicals grew faster in both reported revenue and volume, although cement remained the substantially larger reported revenue segment during the half year.

In 2QFY27, construction-chemicals revenue rose 50% to Rs 130.77 crore from Rs 87.26 crore in 2QFY26. Cement revenue grew 8% to Rs 2,327.51 crore from Rs 2,147.58 crore. The quarterly chemicals revenue increase coincided with 38% volume growth, while cement’s 8% revenue growth matched its 8% volume growth.

Reported construction-chemicals revenue excludes captive consumption used in the cement division, which is eliminated at company level under Indian Accounting Standards, or Ind AS. Captive consumption fell 61% to Rs 3.07 crore in 1HFY27 from Rs 7.81 crore in 1HFY26, while it increased 34% in 2QFY27 to Rs 2.66 crore. The segment comparison therefore covers reported external revenue after this elimination.

What did faster chemicals growth change in Ramco Cements’ sales mix?

Construction chemicals represented about 4.6% of combined reported cement and construction-chemicals revenue in 1HFY27, up from about 3.8% in 1HFY26, based on Ramco Cements’ standalone segment figures. Chemicals revenue rose by Rs 51.23 crore to Rs 216.88 crore, while cement revenue increased by Rs 371.05 crore to Rs 4,510.37 crore.

The volume figures point in the same direction, but they cannot establish a revenue mix because cement and construction chemicals are different product categories. Chemicals accounted for 3.39 lakh tonnes of reported sales in 1HFY27, compared with 92.18 lakh tonnes of cement. Ramco Cements did not disclose product-level pricing, gross margin or earnings for construction chemicals in the investor update.

The segment growth occurred during a broader expansion in sales volume. Ramco Cements reported total sale volume of 9.56 million tonnes in 1HFY27, up 10% year on year, while average cement price for the half year remained flat from the prior year. In 2QFY27, the company said sale volume rose 9% year on year despite monsoon-related demand disruption, and average cement prices improved 2% year on year and 1% sequentially.

Why did Ramco Cements’ profit decline despite higher revenue?

Ramco Cements’ earnings declined in 1HFY27 because operating expenses rose faster than revenue. Standalone revenue increased 10% to Rs 4,742.02 crore, but operating expenses rose 16% to Rs 4,097.10 crore. Standalone earnings before interest, tax, depreciation and amortisation, or EBITDA, consequently declined 19% to Rs 644.92 crore from Rs 798.08 crore.

Power and fuel cost per tonne increased by Rs 243 year on year in 1HFY27, according to Ramco Cements, while the rupee depreciated 10% year on year during the period. The company also reported that mineral-bearing land tax on limestone in Tamil Nadu had an impact of about Rs 72 crore in 1HFY27, or Rs 77 per tonne of cement. Ramco Cements has disputed the levy effective August 22, 2026, citing cessation of the levy through an amendment act.

Standalone profit after tax fell 56% to Rs 70.04 crore in 1HFY27 from Rs 160.32 crore in 1HFY26, while profit before tax including exceptional items declined 57% to Rs 93.69 crore. The half-year result included Rs 17.42 crore of profit from the sale of non-core assets. Interest expense decreased 13% to Rs 188.51 crore, and the effective interest rate declined by 37 basis points to 7.04% as borrowings reduced year on year.

Conclusion

Ramco Cements’ 1HFY27 data show construction chemicals expanding faster than its cement segment, with volume growth of 26% versus 10% and reported revenue growth of 31% versus 9%. The difference increased construction chemicals’ share of combined reported segment revenue, but cement remained the principal revenue source and the update did not disclose construction-chemicals profitability.

The next results will show whether the 2QFY27 acceleration in construction chemicals, when volume rose 51% sequentially, continues. Ramco Cements has also disclosed matters to watch in fuel costs, cement prices and the disputed Tamil Nadu limestone levy, which affected EBITDA by about Rs 72 crore in 1HFY27.