Ramco Cements Plans ₹1,200 Cr Capex for FY26, Advances ₹1,000 Cr Asset Monetisation.

The Ramco Cements Ltd has announced a capital expenditure (capex) plan of ₹1,200 crore for FY26, maintaining its guidance from the previous fiscal. The company is also progressing on its ₹1,000 crore asset monetisation target, having raised ₹443 crore so far this fiscal through non-core asset sales.

In Q3 FY25, Ramco Cements incurred a capex of ₹256 crore, bringing total spending for the first nine months to ₹800 crore. The company has received an additional ₹10 crore as advances for assets in the final stages of sale and remains on track to meet its monetisation target.

Proceeds from asset sales have been used to reduce debt, with the company's net debt standing at ₹4,616 crore as of December 31, 2024. In Q3 alone, debt was reduced by ₹487 crore.

Ramco Cements is on course to achieve a cement production capacity of 30 MTPA by March 2026. Expansion plans include commissioning a second production line at Kolimigundla, capacity enhancements through de-bottlenecking, additional grinding facilities, and a railway siding at Kolimigundla, set for completion in March 2025.

The company is also investing in sustainability projects, with a 10 MW Waste Heat Recovery System (WHRS) at RR Nagar expected to be operational by June 2025 and a 15 MW WHRS unit at Kolimigundla set to launch alongside Kiln Line-2 by March 2026. Additionally, a new construction chemicals unit in Odisha is expected to be commissioned before March 2025.

For its greenfield project in Karnataka, Ramco Cements has acquired 53% of the required mining land and 13% of the factory land, marking steady progress on its expansion plans.

HBL