1. At a Glance

The Ramco Cements Ltd just dropped its Q2FY26 results and let’s just say, for a cement company, the results weren’t set in stone—they were surprisingly lively. The company clocked₹2,242 crore in revenue(up 9% YoY) and aPAT of ₹74 crore, showing a whopping191% jump in profits, which is like watching a scooter suddenly outrun a BMW in a drag race. TheEBITDA stood at ₹394 crore, proving operational grit even when input costs continue to nag like a mother-in-law on Diwali cleaning day.

The market currently values Ramco at amarket cap of ₹24,267 croreand a price of₹1,027 per share, trading at amind-boggling P/E of 128x— higher than Ultratech, Ambuja, and maybe even your patience for cement jokes. Thebook valueis ₹315, giving aP/B ratio of 3.26x. The company’sROCEstands at4.77%, andROEat1.42%, which means the company is earning less on its capital than your savings account at SBI.

But hey, cement demand’s up, utilisation is above 80%, and the company’s CAPEX engine is running full throttle. The question is — can Ramco build shareholder wealth faster than it’s building plants?

2. Introduction

Ramco Cements isn’t your average cement maker. It’s a South Indian legend, known as much for itsdiscipline in expansionas for itsobsession with wind turbines. The Chennai-headquartered firm has spent the past few years in what looks like an “infinite CAPEX loop.” Every investor presentation sounds like: “Another grinding unit, another kiln, another windmill.”

And honestly, that’s both the charm and the challenge. In a world where cement players like Ultratech and Shree Cement throw around money like Diwali crackers, Ramco is the guy building his empire brick by brick — literally.

The company’sprofitability took a beating post FY21, but FY26 has brought back some smiles. Sales are up, EBITDA margins are steady, and despite afinance cost of ₹111 crorethis quarter, management still has the courage to commission new units. That’s commitment — or maybe madness — depending on whether you’re a shareholder or their auditor.

Now with the recentamalgamation of Ramco Windfarms Ltd, and a₹1,200 crore FY26 CAPEX, Ramco seems to be pouring concrete not just into roads and bridges, but into its own legacy.

3. Business Model – WTF Do They Even Do?

Let’s simplify. Ramco Cements makes — you guessed it —cement, and a few extras on the side. The core portfolio includes:

• 12 types of cementfor every imaginable use (from strong foundations to strong excuses).
• Ready Mix Concrete (RMC)for urban sites that can’t store materials.
• Dry mortar products— basically pre-mixed cement and sand for lazy but rich builders.

They’re not just throwing stones at competitors; they’re alsostacking them neatly into bags. Their business operates throughfour integrated cement plantsandsix grinding units, totaling19.4 MTPA capacity, covering South and East India.

But here’s the kicker: out of their~319 MW captive power, around126 MWcomes from wind. That’s like being a cement company that secretly wants to be a renewable energy firm.

In FY24, they operated at80% utilisation(vs. 68% last year). Translation: Their plants are sweating harder than the average MBA during campus placements.

So yes, they’re making cement. But they’re also making sure they do it with the least dependence on the grid, the most CAPEX, and just enough margins to keep everyone guessing.

4. Financials Overview

Commentary:Margins are holding strong despite rising energy costs, but PAT growth