Ramco Cements sets ₹800 cr capex for FY27 to reach 31 MTPA capacity
The company targets capacity growth after liquidating ₹1,098 cr in assets.
— 2 earlier stories on The Ramco Cements Ltd. →What's new
- FY26 standalone revenue hit ₹9,056 cr, a 6% year-on-year increase.
- A new mineral-bearing land tax in Tamil Nadu added ₹150 cr to costs.
- Asset disposals have yielded ₹1,098 cr; management targets another ₹150 cr.
Why it matters
Ramco is funding growth through asset sales while absorbing regional tax hikes. The expansion roadmap is clear, but rising local levies keep margins under pressure. The next test is operational efficiency.
What we're watching
- Progress on the new Kolimigundala kiln line.
- Completion of the final ₹150 cr in non-core asset sales.
- FY27 operating margins following the new land tax.
The full read
The Ramco Cements closed FY26 with revenue of ₹9,056 crore, a 6% increase. Profit benefited from asset sales.
Management is moving ahead with an ₹800 crore capital expenditure budget for FY27, intending to push total production capacity to 31 million tonnes per annum via a new kiln line at Kolimigundala. The firm already converted ₹1,098 crore of non-core assets into cash over the last two years and plans to offload a final ₹150 crore soon.
Tamil Nadu introduced a mineral-bearing land tax that cut into results by ₹150 crore this year. This is a permanent cost hike.
Ramco clarifies its deleveraging path and expansion strategy here, though these figures largely track with previously reported annual results. The open question is whether future capacity gains can reliably outpace the impact of new regional tax obligations. The strategy relies on asset monetization. It remains to be seen if that tailwind persists.