Ramco Industries redeems NCDs as debt-equity hits zero

Ramco Industries Limited fully redeemed its privately placed listed non-convertible debentures during the quarter ended 30 September 2026, leaving no NCD amount outstanding and reporting a standalone debt-equity ratio of 0.00 times. The redemption released the hypothecation over movable fixed assets, excluding vehicles, that had secured the instruments.

Why did Ramco Industries redeem its listed NCDs?

Ramco Industries exercised the call option attached to its listed non-convertible debentures, or NCDs, during the quarter ended 30 September 2026 and fully redeemed them. The filing does not state the redemption amount, coupon rate, maturity date or call price, but says the NCDs had been privately placed and rated by ICRA.

Ramco Industries said no amount remained outstanding under the NCDs at 30 September 2026. This disclosure applies specifically to the debentures and does not mean every balance-sheet obligation was eliminated, since the standalone statement still reported Rs 6.40 crore of current borrowings at the reporting date.

The redemption was disclosed with financial results approved by the board on 4 November 2026 after review by the audit committee. Ramco Industries said its statutory auditors had conducted a limited review of the standalone results for the quarter and half year ended 30 September 2026 and expressed an unmodified opinion.

How did Ramco Industries' standalone borrowings change from March?

Ramco Industries' standalone non-current borrowings fell from Rs 41.12 crore at 31 March 2026 to nil at 30 September 2026, while current borrowings declined from Rs 128.08 crore to Rs 6.40 crore. The company separately disclosed that current borrowings included Rs 3.75 crore of current maturities of long-term borrowings at September, compared with Rs 35.00 crore at March.

The debt-equity ratio, defined in the disclosure as total debt divided by total equity, moved to 0.00 times from 0.13 times at 31 March 2026. Total debt to total assets was also reported at 0.00 times at 30 September, against 0.10 times at March, while net worth rose by Rs 107.09 crore to Rs 1,451.98 crore.

What asset charge was released after the NCD redemption?

Ramco Industries released the hypothecation that secured the NCDs once they were fully redeemed. Before redemption, the company had created a pari-passu first charge through hypothecation over movable fixed assets, excluding vehicles, for the secured debentures.

The asset-cover ratio for the secured NCDs was consequently not applicable at 30 September 2026, compared with 4.72 times at 30 June 2026 and 4.79 times at 31 March 2026. Asset cover measures assets pledged for secured NCDs relative to outstanding secured debt plus interest accrued but not due; without outstanding NCDs, Ramco Industries said the ratio no longer applied.

The release was limited to the hypothecation described for the NCDs, and the filing does not identify individual assets or give their value. On the standalone balance sheet, property, plant and equipment stood at Rs 523.82 crore at 30 September 2026, down from Rs 528.46 crore at 31 March, while capital work-in-progress increased to Rs 40.54 crore from Rs 13.72 crore.

How did cash flow support the repayment?

Ramco Industries generated Rs 182.87 crore of net cash from operating activities in the half year ended 30 September 2026, up from Rs 68.20 crore in the corresponding half year of 2025. The cash-flow statement recorded Rs 172.37 crore of repayment of long-term borrowings and Rs 90.43 crore of outflows under short-term borrowings during the 2026 half year.

A Rs 102.43 crore reduction in inventories was the largest working-capital contribution in the half year, compared with a Rs 45.46 crore reduction a year earlier. Cash generated from operations was Rs 207.15 crore before Rs 24.28 crore of taxes paid, whereas the prior-year figure was Rs 76.96 crore before tax payments.

Financing activities used Rs 178.91 crore in the six months to September 2026, compared with Rs 96.08 crore a year earlier. Alongside debt repayments, Ramco Industries paid Rs 10.86 crore in dividends and Rs 5.17 crore in interest including lease-liability interest; cash and bank balances for the cash-flow statement closed at Rs 23.46 crore, compared with Rs 8.88 crore a year earlier.

What were Ramco Industries' operating results when the NCDs were redeemed?

Ramco Industries reported standalone revenue from operations of Rs 876.27 crore for the half year ended 30 September 2026, up from Rs 738.01 crore in the prior-year half year. Net profit after tax increased to Rs 118.00 crore from Rs 68.51 crore, while finance cost declined to Rs 4.31 crore from Rs 8.47 crore.

Building Products supplied Rs 741.34 crore of standalone segment revenue in the 2026 half year, versus Rs 623.21 crore a year earlier. Textiles revenue rose to Rs 111.60 crore from Rs 91.96 crore, whereas Windmills revenue was Rs 14.92 crore, slightly below Rs 15.26 crore in the corresponding period.

Standalone profit before tax was Rs 156.21 crore for the six months, compared with Rs 87.14 crore a year earlier. The 2026 figure includes Rs 8.78 crore of exceptional profit on the sale of land disclosed in the previous quarter, while operating margin was reported at 17% for the half year, compared with 12% in the prior-year half year.

Conclusion

The NCD redemption removed Ramco Industries' outstanding listed debentures as of 30 September 2026 and released the related charge over specified movable fixed assets. At the same date, Ramco Industries reported a 0.00-times standalone debt-equity ratio, while non-current borrowings had fallen by Rs 41.12 crore and current borrowings by Rs 121.68 crore since 31 March 2026.

The unresolved item is the composition of the remaining Rs 6.40 crore of current borrowings, which the filing does not detail. Future disclosures can show whether operating cash generation of Rs 182.87 crore continues to support cash balances, capital work-in-progress of Rs 40.54 crore and the Building Products, Textiles and Windmills segments.