Ramco Cements moves Rs 536.76 crore into current borrowings

The Ramco Cements Limited reported current borrowings of Rs 1,584.92 crore at 30 September 2026, Rs 536.76 crore above the 31 March 2026 balance, while non-current borrowings fell Rs 425.67 crore to Rs 2,378.22 crore. The consolidated balance sheet therefore recorded a marked move in borrowings toward current classification.

How did Ramco Cements' debt mix change by September 2026?

Ramco Cements shifted more of its borrowings into the current category by 30 September 2026. Current borrowings rose to Rs 1,584.92 crore from Rs 1,048.16 crore at 31 March 2026, whereas non-current borrowings declined to Rs 2,378.22 crore from Rs 2,803.89 crore. Combined borrowings increased by Rs 111.09 crore to Rs 3,963.14 crore, so the change in maturity classification was substantially larger than the rise in total debt.

Current maturities of long-term borrowings were the largest separately disclosed part of current borrowings. They increased by Rs 404.05 crore to Rs 1,410.21 crore at 30 September 2026, from Rs 1,006.16 crore at 31 March 2026. That amount represented about 89% of the Rs 1,584.92 crore current-borrowing balance, showing that debt moving into its current maturity period drove much of the reported change.

What do Ramco Cements' current liabilities and liquidity figures show?

Ramco Cements reported total current liabilities of Rs 4,753.97 crore at 30 September 2026, up Rs 361.60 crore from Rs 4,392.37 crore at 31 March 2026. Current assets declined by Rs 27.51 crore to Rs 2,359.62 crore over the same period. The reported current ratio was 1.08 times for the quarter ended 30 September 2026, compared with 1.20 times at 31 March 2026.

The current ratio uses a company-disclosed calculation that excludes security deposits payable on demand and current maturities of long-term debt from current liabilities in its denominator. The Rs 1,410.21 crore of current maturities is therefore included in current borrowings on the consolidated balance sheet but excluded from the ratio's denominator. This distinction means the ratio and the balance-sheet maturity figure measure different parts of the near-term liability position.

Other balance-sheet movements partly offset the increase in current borrowings. Other financial liabilities decreased by Rs 260.84 crore to Rs 1,705.30 crore, while trade payables to creditors other than micro and small enterprises increased by Rs 88.22 crore to Rs 1,281.69 crore. Inventories rose by Rs 102.20 crore to Rs 1,131.92 crore, while cash and cash equivalents declined to Rs 44.50 crore from Rs 188.32 crore.

Did Ramco Cements raise or repay debt during the half year?

Ramco Cements repaid Rs 198.98 crore of long-term borrowings and raised Rs 175 crore through long-term borrowings in the half year ended 30 September 2026. The cash-flow statement also showed net proceeds of Rs 112.36 crore from short-term borrowings. The financing flows coincide with the balance-sheet outcome of lower non-current borrowings and higher current borrowings at the half-year date.

Net cash used in financing activities was Rs 105.28 crore in the half year ended 30 September 2026, compared with Rs 202.93 crore in the corresponding 2025 period. Interest paid, including lease-liability interest, fell to Rs 134.33 crore from Rs 158.64 crore. Dividend payments including tax rose to Rs 59.13 crore from Rs 47.31 crore in the prior-year half year.

Cash generation from operations was Rs 273.61 crore for the half year, down from Rs 645.74 crore a year earlier. Ramco Cements used Rs 332.50 crore in investing activities, compared with Rs 545.13 crore in the prior-year period. Closing cash and cash equivalents, net of cash credit, were Rs 24.15 crore, versus an opening balance of Rs 188.32 crore on 1 April 2026.

How do Ramco Cements' leverage and coverage measures compare?

Ramco Cements reported a debt-equity ratio of 0.49 times for the quarter ended 30 September 2026, compared with 0.48 times at 31 March 2026 and 0.62 times a year earlier. Total debts to total assets were 24% at 30 September 2026, compared with 23% at the March 2026 year-end and 28% at 30 September 2025. These ratios moved less sharply than the classification shift between current and non-current borrowings.

Debt service coverage was 1.61 times for the half year ended 30 September 2026, compared with 0.94 times in the corresponding prior-year half. Interest service coverage was 3.03 times, against 3.23 times a year earlier. Ramco Cements defines debt service coverage as profit before interest and depreciation, after current tax, divided by principal debt repayment excluding prepayments plus gross interest.

The asset cover ratio for secured non-convertible debentures was 2.57 times at 30 September 2026, compared with 2.58 times at 31 March 2026. Ramco Cements said it maintains a pari-passu first charge through hypothecation over movable fixed assets, excluding vehicles, for all series of secured non-convertible debentures. Consolidated net worth was Rs 8,105.79 crore at September 2026, up from Rs 8,093.88 crore at March 2026.

Conclusion

Ramco Cements' September 2026 balance sheet shows that the principal debt development was a change in timing rather than a large increase in total borrowings. Current borrowings rose Rs 536.76 crore while non-current borrowings declined Rs 425.67 crore, and current maturities of long-term borrowings rose Rs 404.05 crore. The lower current ratio of 1.08 times and reduced closing cash balance provide further context for the changed near-term funding profile.

The next balance-sheet and cash-flow disclosures can show whether the Rs 1,410.21 crore of current maturities is repaid, refinanced or replaced by new long-term funding. Ramco Cements also disclosed that its representation on the Tamil Nadu mineral bearing land tax remains pending; Rs 8.61 crore remitted under protest between 22 August 2026 and 30 September 2026 was not recognised as an expense while the matter remains unresolved.