The Ramco Cements Limited (RAMCOCEM)
Small CapMaterials stocks · Small cap · NSE
The Ramco Cements Limited is an Indian cement manufacturer. The company reported its 3QFY26/9MFY26 performance, highlighting growth in construction chemicals and premium products, alongside challenges from increased raw material costs and sequential price drops.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100PAT -64% YoY · margin compression · Rev +10% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,273 Cr | +9.6% | -12.9% |
| EBITDA | ₹306 Cr | -23.1% | -17.5% |
| Operating margin | 13.0% | -600 bps | -100 bps |
| PAT | ₹31 Cr | -63.5% | -79.5% |
| PAT margin | 1.4% | -274 bps | -443 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
3QFY26 Revenue up 7% YoY, PAT up 19% YoY, but EBITDA/ton declined 25% QoQ due to new mineral tax and higher fuel costs. Construction chemicals volume grew 79% YoY.
Profitability is under pressure from new taxes and higher fuel costs, leading to a sharp sequential decline in EBITDA/ton. While capacity expansion is underway and non-core asset sales are on track, sustained price drops and competitive intensity pose risks to margin recovery.
Standalone Revenue by Product (3QFY26)
Latest issuer-disclosed distribution across 3 reported categories.
Construction Chemicals Business
Volume grew 79% YoY in 3QFY26 and 77% YoY in 9MFY26, with increased brand promotion spend.
Premium Products Share
Share of premium products in the East market increased to 29% in 3QFY26 from 26% in 3QFY25.
Capacity Expansion
Company plans to achieve ~31 MTPA cement capacity by Mar-27 through debottlenecking and brownfield expansion.
Ariyalur Debottlenecking
2.00 MTPA cement capacity expected by Feb-26.
Ramasamy Raja Nagar Debottlenecking
0.62 MTPA clinker and 1.00 MTPA cement capacity expected by Mar-26.
Jayanthipuram Debottlenecking
1.01 MTPA clinker and 0.70 MTPA cement capacity expected by Jun-26.
Kolimigundla Line II Brownfield Expansion
3.15 MTPA clinker, 3.00 MTPA cement, and 15 MW WHRS expected before Mar-27.
Strong GDP Growth Projection
India's real GDP growth for FY27 projected at 6.8% to 7.2%, bolstering rural incomes and urban demand.
Government Capex Focus
FY27 Budget allocation for capex is `12.2 lac crores, up ~9%, with key focus on infrastructure.
Green Power Adoption
47% of total power in 3QFY26 met from green power, driven by record high wind power generation, reducing power cost.
City Economic Regions (CER) Scheme
Budget focus on Tier II and Tier III cities and temple towns through CER expects to drive sustained cement demand.
Cement Price Drop
Trade prices dropped by 8% in East and 9% in South from exit price of Sep-25.
Increased Raw Material Tax
Levy of mineral bearing land tax at `160 per ton of limestone in TN, impacting raw material cost by ~`47 Crores in 3QFY26.
Higher Fuel Costs
Power and fuel cost up by `27/Ton YoY and `59/Ton QoQ due to increase in fuel price and 4% rupee depreciation.
Cement Price Sustainability
Sustainability of cement prices amid rising pace of capacity additions/consolidation and regional competitive intensity.
Input Cost Volatility
INR-USD movement and energy commodity price movements remain sensitive for input cost and margins.
Geopolitical & Weather Risks
Geopolitical tensions, global trade tariff issues, and weather-related uncertainties pose downside risks to demand and costs.
Infrastructure Spending Delays
Execution delays in government-led infrastructure spending.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing annual growth and seasonal trends in the cement business. QoQ comparison is vital for tracking sequential momentum, price changes, cost fluctuations, and the immediate impact of operational factors.
Cement Sales Volume
3QFY26 sales volume was 44.33 Lac Tons, up 3.6% YoY and 0.75% QoQ.
Cement Capacity Utilization
3QFY26 utilization was 73%, down from 75% in 3QFY25 but up from 71% in 2QFY26.
EBITDA per Ton
3QFY26 EBITDA per ton was `651, down 2.2% YoY and 24.8% QoQ.
Raw Material Cost per Ton
3QFY26 raw material cost per ton was `1,012, up 4.4% YoY and 1.7% QoQ, impacted by `160/ton mineral bearing land tax in TN.
Capacity Target
Company plans to achieve cement capacity of ~31 MTPA by Mar-27.
Capex Reduction
FY26 capex estimated at `1,100 Crores, a reduction of `100 Crores from earlier estimate.
Non-Core Asset Monetization
Monetized `1,017 Crores from non-core assets against a `1,000 Crores target, with plans to dispose ~`200 Crores more soon.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA per Ton | `651/T (3QFY26) | Recovery from sequential decline and sustained impact of new mineral tax. |
| Cement Trade Prices | 8-9% drop from Sep-25 exit prices | Stabilization or recovery in regional trade prices. |
| Capacity Utilization | 73% (3QFY26) | Ramp-up and efficient utilization of new and debottlenecked capacities. |
| Net Debt Reduction | 2.84x Net Debt/EBITDA (Dec-25) | Further reduction through asset monetization and cash generation. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
35Bearishfull bear SMA stack · SMA20 -2.2% / mo · MACD − · near 52W low
Technical chart
RAMCOCEMdaily · 1Y · AUTO-19.9%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 44.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~2.3% over last month) — short-term momentum negative.
- RSI(14) at 44 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 27% off 52W high · 6% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 7.2% below the 30-week proxy.
- The 50-DMA is below the 30-week proxy and its slope is falling -2.6%.
Valuation & score drivers
U-Score 26 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 26 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 6.1%.
- Piotroski is strong at 7/9.
- Cash flow contributes 9/10 to the score.
Main drags
- Fair-value margin of safety is negative at -3712.9%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 1/30; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 72nd percentile of the scored universe and 68th percentile within Materials. Main check: financial discipline is weak at 40/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: ROCE is low at 6.1%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Materials: 68th pctile, median 70 · Small: 75th pctile, median 66
67 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is 6.1%.
- ▸7 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸ROCE is low at 6.1%.
- ▸ROE is low at 0.4%.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 110.00
- P/B
- 2.58
- EV/EBITDA
- 11.85
- Market Cap
- 20900.00Cr
Profitability
- ROE
- 0.38%
- ROCE
- 6.13%
- ROA
- 3.88%
- Dividend Y
- 0.28%
Growth (CAGR)
- Revenue 5Y
- 11.00%
- EPS 5Y
- -48.00%
- Revenue 3Y
- 3.00%
- EPS 3Y
- -54.00%
Balance Sheet
- Debt/Equity
- 0.48
- Interest Coverage
- 3.28×
- Altman Z
- 3.15
- Book Value
- 343.00
Cash Flow
- FCF Yield
- 6.09%
- FCF Positive Y
- 7/5
- OCF
- 1611.00 Cr
- EPS TTM
- 27.29
Shareholding
- Promoter Hold
- 42.55%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 12%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Materials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.