Ramco Cements Q1FY27: consolidated PAT falls 63% YoY to ₹31 Cr as costs squeeze margins

The Ramco Cements' consolidated PAT for the quarter ended 30 June 2026 fell 63.1% year-on-year to ₹31.24 Cr from ₹84.56 Cr, and 79.3% sequentially from ₹150.72 Cr, even as consolidated revenue grew 9.6% YoY to ₹2,273.05 Cr (down 12.9% QoQ from the seasonally stronger Q4). The reported PAT includes a ₹12.62 Cr exceptional gain on sale of surplus land that the year-ago quarter did not have; stripping that out, adjusted PAT is down closer to 74.5% YoY to roughly ₹21.5 Cr, and pre-exceptional PBT alone collapsed 75.8% YoY to ₹27.77 Cr from ₹114.87 Cr — the underlying print is weaker than the headline number suggests. The damage sits squarely on margins: net profit margin compressed to 1% from 4% a year ago and 6% last quarter, and operating margin fell to 14% from 19% YoY (15% QoQ), even though cost of materials and depreciation were roughly flat YoY. Power & fuel cost ₹609.74 Cr and transportation & handling ₹489.81 Cr together account for nearly half of total expenses, and employee costs rose to ₹157.47 Cr from ₹147.07 Cr YoY. We found no formal Street consensus estimate for this specific quarter to grade the print against, so vsStreet is marked unknown rather than guessed. On guidance, commentary from the company's FY26 results (May 2026) had flagged that packing and diesel cost increases would show up in Q1 FY27, with the fuller impact of higher fuel costs to hit from Q2 FY27 — this quarter's margin compression is consistent with that early-stage cost pressure materialising on schedule; management's press release for this specific filing was not available in our records to quote directly. Two days before this result, on 5 August 2026, the company disclosed disposal of non-core assets worth ₹1,106.47 Cr — a separate, larger divestment than the recurring surplus-land exceptional gains that have appeared in results over the past few quarters (₹573.52 Cr in FY26, ₹12.62 Cr this quarter). The board also recommended a ₹2.50/share dividend for FY26 in the same window. Neither of these items flows through the Q1 FY27 P&L shown here, but both point to continued balance-sheet monetisation activity around the same period as a soft operating quarter. Going into Q2 FY27, the setup is a cost line under more pressure (per management's own timeline) against a revenue base that grew YoY but slipped materially QoQ — the quarter sets up a test of whether realisation gains can outrun the flagged fuel-cost step-up.