The Ramco Cements Ltd (RAMCOCEM) Q1 FY27 Results Analysis: PAT Plunges 63%, EBITDA Slips 22%

The Ramco Cements Ltd's Q1 FY27 numbers came in soft, with revenue of Rs. 2,273.05 Cr (+9.60% YoY) and PAT growth of -63.27% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 9.6% YoY but EBITDA fell 22.4% due to severe input cost inflation (power & fuel +21.9%, transportation +14.6%) amplified by INR depreciation. PAT declined 63.3% YoY; normalized PAT was down 74.7%. Debt-equity ratio improved to 0.49x but coverage ratios weakened on lower EBITDA.

Key Investment Insights

Key Positives

• Revenue grew 9.6% YoY to Rs.2,273.05 Cr
• Debt-equity ratio improved to 0.49x from 0.63x YoY
• Net worth grew 7.9% YoY to Rs.8,124.98 Cr
• Finance costs declined 8.7% YoY to Rs.95.58 Cr
• Debtors turnover improved to 25 days from 29 days YoY

Risk Factors

• EBITDA fell 22.4% YoY to Rs.313.19 Cr, margin compressed 568 bps to 13.78%
• PAT (parent) declined 63.3% YoY to Rs.31.23 Cr; normalized PAT after stripping land sale fell 74.7% YoY to Rs.21.54 Cr
• Power & fuel costs rose 21.9% YoY, increasing 270 bps as % of revenue to 26.82%
• Transportation costs rose 14.6% YoY, up 94 bps as % of revenue to 21.55%
• Total expenses grew 14.6% YoY, outpacing revenue growth of 9.6% by ~500 bps
• Inventory turnover worsened to 45 days from 36 days QoQ