**Ramco Cements: Strategic Asset Sales Drive Q3 Growth Amid Operational Headwinds** Ramco Cements has delivered a significant boost to its bottom line for the third quarter of FY26. The company reported a 19% year-on-year increase in net profit, reaching 387 crore. This growth was largely supported by exceptional gains of 479 crore from the sale of non-core assets, including land parcels valued at over 500 crore. Revenue for the quarter rose by 6.2% to 2,105 crore, compared to 1,988 crore in the same period last year. Despite this growth, core operational health faced pressure as EBITDA remained flat at 279 crore. Operating margins saw a slight contraction, moving from 14% to 13.3%, reflecting a challenging pricing environment and rising input costs. **Pricing and Market Dynamics** The cement sector experienced sharp volatility during the quarter. Average cement prices fell by 6% sequentially, with more pronounced declines of 8% in Southern India and 9% in Eastern markets. However, the industry is showing early signs of recovery in February 2026. Major players are implementing price hikes of 15 to 20 per bag in non-trade segments to offset cost escalations. **Cost Pressures and Green Energy** Operational expenses were impacted by a new limestone tax in Tamil Nadu, adding 160 per tonne to raw material costs. Additionally, power and fuel expenses rose by 59 per tonne on a sequential basis. To mitigate these pressures, Ramco has increased its green power usage to 47%, up from 39% last year, and continues to invest in Waste Heat Recovery Systems. **Balance Sheet and Debt Management** A key highlight of the quarter was the reduction in net debt, facilitated by aggressive asset monetization. The company has now realized cumulative proceeds of approximately 484 crore from non-core asset sales. Its debt-equity ratio has improved to 0.52 times, signaling a stronger financial position. **Capex and Future Capacity** Ramco Cements has revised its full-year capital expenditure estimate downward to 1,100 crore from the earlier 1,200 crore. Spending for the first nine months of the fiscal year stood at 823 crore. Capacity expansion remains on track. The company recently enhanced its Ariyalur plant capacity from 3.5 MTPA to 5.5 MTPA through de-bottlenecking. Total cement capacity is projected to reach 31.14 MTPA by March 2027, supported by brownfield expansions in Kolimigundla and new projects in Karnataka. **Market Performance** Investor sentiment remains resilient. Ramco Cements shares recently rallied to approximately 1,208, reflecting an 11% gain over the past month. The stock is currently trading near its 52-week high of 1,214.50, though analysts note its high Price-to-Earnings ratio of 74x-78x compared to the industry average. The outlook for the final quarter of FY26 is buoyed by a record 12.2 lakh crore infrastructure push in the latest Union Budget. This is expected to sustain high demand for cement across housing and mega-infrastructure projects through the remainder of the year.