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Ramky Infrastructure Sees Major Profit Boost in FY2026
Ramky Infrastructure announced a substantial leap in its consolidated net profit for the fiscal year ending March 31, 2026. The company reported a profit of ₹282.78 crore, a notable increase from ₹201.75 crore in the prior fiscal year. Its standalone net profit also climbed to ₹331.88 crore.
Key Financials and Dividend
The company's consolidated revenue for FY2026 was ₹1,846.48 crore, a slight dip from ₹2,044.54 crore in FY2025. However, the significant rise in net profit was bolstered by an exceptional gain of ₹156.06 crore from the sale of a 51% stake in Visakha Pharmacity Limited. Following this performance, Ramky Infrastructure's board approved a final dividend of ₹1 per equity share.
Strategic Expansion and Legacy Issues
Ramky Infrastructure is looking to broaden its horizons by incorporating a subsidiary in the UAE, signaling an intention to expand into new markets and sectors, including water and wastewater management. This expansion comes as the company continues to navigate legacy challenges, such as the termination of the Hospet Chitradurga Tollways project and ongoing arbitration with NHAI regarding the Srinagar Banihal Expressway. The company has also had to address write-offs related to receivables.
Corporate Restructuring and Risks
In a move to simplify its structure, the amalgamation of two wholly owned subsidiaries, Sehore Kosmi Tollways Limited and Ramky Elsamex Hyderabad Ring Road Limited, has received approval from the National Company Law Tribunal (NCLT).
Investors should be aware of potential risks, including a receivable write-off of ₹72.35 crore in the fourth quarter of FY2026. Furthermore, arbitration proceedings with NHAI concerning the Srinagar Banihal Expressway, where a substantial ₹250.95 crore was deducted in previous years, remain unresolved. The auditors also flagged that the subsidiary impacted by the termination of the Hospet Chitradurga Tollways project still faces uncertainty regarding its going concern status.