Are Ramco Inds. latest results good or bad?

Ramco Industries has reported its financial results for the quarter ending September 2025, revealing a complex operational landscape. The company achieved consolidated net sales of ₹365.48 crores, reflecting a year-on-year growth of 3.49% compared to ₹353.17 crores in the same quarter last year. However, this figure represents a significant sequential decline of 30.63% from the previous quarter, raising concerns about demand sustainability and potential seasonality in its core business segments, particularly in fibre cement and cotton yarn.
In terms of profitability, the consolidated net profit stood at ₹40.93 crores, marking a substantial year-on-year increase of 142.48%. This growth is notable, yet it comes alongside a sequential decline of 37.64% from the previous quarter's performance. The operating margin, excluding other income, improved to 14.34%, up 144 basis points from the prior quarter, indicating effective cost management and operational efficiencies despite the revenue challenges.

A significant concern is the company's effective tax rate, which surged to an extraordinary 52.52% in Q2 FY26, compared to 20.08% in the previous quarter. This abnormally high tax rate has considerably compressed net profitability and raises questions about the sustainability of earnings.

The financial performance of Ramco Industries reflects a mixed picture; while there are positive indicators such as margin expansion and strong year-on-year profit growth, the pronounced revenue volatility and elevated tax rate present challenges that need to be addressed. The company has seen an adjustment in its evaluation, reflecting these operational dynamics. Investors may want to monitor the company's ability to stabilize revenue and manage tax rates in the upcoming quarters.