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 a PAT of ₹74 crore, showing a whopping 191% jump in profits, which is like watching a scooter suddenly outrun a BMW in a drag race. The EBITDA 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 a market cap of ₹24,267 crore and a price of ₹1,027 per share, trading at a mind-boggling P/E of 128x — higher than Ultratech, Ambuja, and maybe even your patience for cement jokes. The book value is ₹315, giving a P/B ratio of 3.26x. The company’s ROCE stands at 4.77%, and ROE at 1.42%, 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 its discipline in expansion as for its obsession 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’s profitability took a beating post FY21, but FY26 has brought back some smiles. Sales are up, EBITDA margins are steady, and despite a finance cost of ₹111 crore this 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 recent amalgamation 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 cement for 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 also stacking them neatly into bags. Their business operates through four integrated cement plants and six grinding units, totaling 19.4 MTPA capacity, covering South and East India.
But here’s the kicker: out of their ~319 MW captive power, around 126 MW comes from wind. That’s like being a cement company that secretly wants to be a renewable energy firm.
In FY24, they operated at 80% utilisation (vs. 68% last year). Translation: Their plants are
