Southern Surge: Ramco Cements Rides a Wave of Rising Prices in Early FY26

Ramco Cements revealed that average cement prices in southern India improved substantially over the first two months of FY26. The company's southern-driven market share recovery from a lackluster price environment and lower sales volume in the last quarter was stated. Ramco cements said it is optimistic that improved pricing will show sustainability as new cement capacity additions are rolled out across the southern region.

 

Data indicates that the average cement price in the South surged ₹33 per bag (a 10% month-on-month change) in April 2025 as part of a positive price recovery from a near 9% decline, year-over-year, in FY25. The April price increase is comparatively higher than price trends in other regions of India, and with the Company's high southern exposure (nearly 78-79% of its volume) it is best positioned to capitalize on an emerging trend in a price-rebounding environment.

 

While each of these positive pricing developments are noteworthy, Ramco Cement indicated that a new tax on limestone mining in Tamil Nadu would contribute to a ₹160-200 increase in production costs per ton. Ramco and other cement manufacturers have engaged with the government seeking relief or a reconsideration of this new tax.

 

Ramco's management remains confident that the higher prices and new capacity expansion and cost savings would support improved profitability in the next few quarters.

 

Source: Reuters