A Sixth-Largest Player Finds Its Footing

• The flagship of the Ramco Group: TRCL ranks as India's sixth-largest cement producer, commanding roughly 24 million tonnes of annual capacity split between the South (20MT) and East (4MT).
• Revenue accelerates: Fourth-quarter sales climbed 9 percent year-on-year to Rs 2,606 crore, powered by a 5 percent rise in realizations and a further 3 percent uptick in volumes.
• Utilization snaps back: Capacity utilization jumped to 83 percent from 73 percent the previous quarter, a signal of stronger volume absorption and tighter plant efficiency.

Margins Widen Despite a New Tax Bite

• EBITDA outpaces sales growth: Operating profit rose 16 percent year-on-year to Rs 373 crore, with EBITDA per tonne up 12 percent, lifting margins to 14.3 percent from 13.4 percent.
• A new cost headwind: Tamil Nadu's mineral-bearing land tax of Rs 160 per tonne of limestone added roughly Rs 37 crore in costs, pushing raw material expenses up 8 percent year-on-year.
• Offset by discipline: A 4 percent reduction in other expenses and a friendlier power-and-fuel mix more than absorbed the tax hit.

Profit Jumps on Cheaper Debt and Asset Sales

• Interest costs retreat: A continued deleveraging push cut interest expenses 16 percent year-on-year to Rs 95 crore, a direct driver of the nearly fourfold rise in adjusted profit.
• A one-off lift: A Rs 68 crore gain from divesting non-core assets pushed reported PAT up about 4.7 times year-on-year to Rs 146 crore.
• Balance sheet repair: Debt-to-equity has been pared to 0.5, with the company guiding Rs 800 crore of capital expenditure for FY27.

Capacity Build-Out Stays on Schedule

• Eyeing 31 MTPA: Management targets total capacity of roughly 31 million tonnes per annum through debottlenecking of existing integrated units and a brownfield expansion at Kolimigundala during FY27.
• New green capacity: A 15 MW waste-heat recovery system and a second kiln line at Kolimigundala are both slated for commissioning in FY27, following Rs 997 crore of capex already deployed in FY26.
• Non-core monetization continues: The company has raised Rs 1,098 crore from non-core asset sales over the past two years, with roughly Rs 150 crore of further disposals in motion.

Fuel Mix Turns Friendlier

• Cheaper energy basket: Blended fuel cost eased to $124 per tonne in FY26 from $127 in FY25, even as the cost per kilocalorie rose modestly to Rs 1.59.
• Power and fuel costs decline: Per-tonne power and fuel expense fell to Rs 1,098 in FY26 from Rs 1,123 in FY25, helped by a sharp cut in the pet coke mix to 47 percent from 63 percent.
• Greener grid: The share of green power in the company's energy mix rose to 40 percent from 36 percent a year earlier.

Outlook: Infrastructure Spending Meets Softer Input Costs

• Demand tailwind: Geojit expects sustained government spending on infrastructure and housing to support volume growth, with cement realizations likely to hold steady.
• Geopolitics eases pressure: The de-escalation of the US-Iran conflict is seen softening energy costs, a tailwind for margins across the sector.
• Valuation basis: Geojit values TRCL at 14 times FY28 estimated EV/EBITDA to arrive at its Rs 1,060 target, formally upgrading the stock from Accumulate to BUY.

The Bottom Line

Geojit's upgrade marks a reversal from its February 2026 Accumulate stance, even though the fresh target of Rs 1,060 sits well below the Rs 1,309 level the brokerage had flagged just four months earlier — a reminder that the stock's own slide, down over 13 percent on a one-year view, has done as much to create the upside as the operational turnaround itself. For investors, the thesis hinges on three pillars: sustained margin recovery as fuel costs ease, continued balance-sheet repair through deleveraging and asset sales, and capacity growth toward 31 MTPA executing on schedule.