Shares of Ramco Cements Ltd witnessed a sharp decline on Tuesday, February 10, 2026, as investors reacted negatively to the company’s third-quarter earnings. The stock plummeted nearly 5% in early trade, hitting a low of ₹1,134.10. The primary reason behind this slump is a weaker-than-expected operational performance and a series of target price downgrades by leading brokerage firms.

Operational Struggles and Pricing Pressure Despite a 6.2% year-on-year increase in revenue to ₹2,105 crore, the company’s operating margins contracted to 13.3% from 14% a year ago. The cement industry has been battling a slowdown in prices; Ramco Cements reported a 6% sequential drop in average cement prices, significantly higher than the 4% decline estimated by analysts. In South and East India, commercial cement prices fell by 8% and 9% respectively, putting immense pressure on the bottom line.

Asset Monetization Boosts Net Profit Interestingly, the company reported a net profit of ₹385.6 crore for the December quarter, a substantial jump from ₹182.4 crore in the previous year. However, this spike was largely driven by an exceptional gain of ₹506 crore from the sale of non-core assets, including land. Without this one-time gain, the core operational figures tell a different story of rising fuel costs and increased raw material expenses due to new mineral taxes in Tamil Nadu.

Brokerage Outlook: Steep Target Cuts Global brokerage CLSA has maintained an ‘Underperform’ rating on the stock, slashing its target price to ₹890 per share. CLSA warned that the recent rally in the stock was “unjustified” and highlighted risks of further earnings downgrades. On the other hand, Jefferies maintained a ‘Hold’ rating with a target of ₹1,045, noting that while the company is successfully reducing debt through asset sales, the underlying operational weakness remains a concern for long-term growth.