Ramco Industries Exceeds CSR Obligation Through Healthcare, Education, Heritage, Rural Development and Sports Initiatives Nationwide
CHENNAI (India CSR): Ramco Industries Limited spent Rs. 1.91 crore on Corporate Social Responsibility initiatives during the financial year 2025-26, exceeding its adjusted statutory obligation of Rs. 1.31 crore. The company directed the entire eligible expenditure towards projects outside the ongoing-project category, with interventions spanning healthcare, education, heritage, rural development, sports, environmental sustainability and support connected with armed forces veterans. Its annual CSR disclosure shows that no amount remained unspent at year-end. The spending reflects Ramco Industries’ stated belief that business growth should also strengthen communities surrounding its operations and improve their quality of life and economic wellbeing over time through sustained engagement.
Obligation Calculation Explained
The company reported an average net profit of Rs. 86.02 crore under Section 135(5) of the Companies Act, 2013. Two per cent of this amount produced a CSR benchmark of Rs. 1.72 crore for FY 2025-26. Ramco Industries, however, had Rs. 40.80 lakh available from excess expenditure incurred in FY 2024-25 and used the entire amount as a set-off during the year. After this adjustment, its statutory CSR obligation stood at Rs. 1.31 crore. Against that requirement, the company spent Rs. 1.91 crore, leaving no shortfall and requiring no transfer to an Unspent CSR Account or Schedule VII fund whatsoever.
Healthcare Receives Priority
Healthcare and allied welfare initiatives received Rs. 66.74 lakh, making them the largest grouped area of Ramco Industries’ CSR expenditure. This included Rs. 50 lakh implemented through the Sri Balaji Arogyavara Prasadini Scheme in Chittoor, Andhra Pradesh, and Rs. 16.74 lakh spent directly in Virudhunagar, Tamil Nadu. The activities were classified under hunger and poverty eradication, nutrition, safe drinking water and healthcare, including preventive healthcare. By combining institutional support with direct local spending, the company concentrated a sizeable portion of its annual CSR resources on essential needs that can influence household wellbeing, health access and community resilience in operating regions.
Heritage Projects Expand
Ramco Industries allocated Rs. 74.96 lakh across heritage, art and cultural initiatives, the largest thematic allocation when all listed locations are combined. Major contributions included Rs. 30 lakh through Chinmaya Seva Trust in Chennai and Rs. 9.63 lakh through The Music Academy. Spending also covered projects in Karur, Chikmagalur, Sringeri, Madurai, Virudhunagar, Thoothukudi, Ramanathapuram and Mayiladuthurai. The projects supported traditional arts and the protection or restoration of heritage and culturally important sites. Most activities were implemented directly, while selected programmes were delivered through registered organisations, allowing the company to combine local execution with specialist institutional capability and valuable cultural experience.
Education Support Widens
Education, vocational skills and livelihood enhancement projects received Rs. 13.12 lakh across Andhra Pradesh, Tamil Nadu, West Bengal and Bihar. The spending included Rs. 6.72 lakh in Ranipet, Rs. 4.07 lakh in Arakkonam, Rs. 69,000 in Kharagpur, Rs. 50,000 in NTR district and smaller interventions in Chennai, Virudhunagar and Bhojpur. Little Steps Foundation implemented one Chennai initiative valued at Rs. 20,000, while the remaining activities were undertaken directly. The portfolio addressed education, special education and employment-oriented skills for children, women, older people and persons with disabilities, linking learning support with the wider objective of sustainably strengthening livelihoods and social inclusion.
Rural Development Reaches
Rural development projects accounted for Rs. 13.80 lakh across six locations. Ramco Industries spent Rs. 6.24 lakh in Bhojpur, Bihar; Rs. 4.72 lakh in Kachchh, Gujarat; Rs. 1.85 lakh in Tirunelveli, Tamil Nadu; Rs. 54,000 in Vijayawada; Rs. 35,000 in Ranipet; and Rs. 10,000 in Ranga Reddy. All projects were implemented directly. The company also reported Rs. 24,000 for environmental sustainability work in Patna and Rs. 20,000 for measuring benefits connected with armed forces support in Chennai. Together, these smaller, geographically distributed programmes extended the CSR portfolio beyond large institutional grants and responded to varied local development priorities across states.
Sports Programmes Supported
Ramco Industries spent Rs. 21.44 lakh on promotion of rural, nationally recognised, Paralympic and Olympic sports. The allocation included Rs. 5 lakh implemented by Mylapore Sports Trust in Chennai and direct spending of Rs. 13.36 lakh and Rs. 1.87 lakh on other Chennai-based activities. Further support reached Virudhunagar and Ranipet, where the company spent Rs. 31,000 and Rs. 90,000 respectively. The disclosure identifies every activity as serving a local area. This sports portfolio broadens the company’s social investment beyond conventional health and education programmes, supporting participation, talent development and access to structured sporting opportunities within communities connected to its presence.
Excess Spending Carried
The company’s Rs. 1.91 crore CSR expenditure exceeded the two per cent benchmark of Rs. 1.72 crore by Rs. 18.50 lakh. When combined with the Rs. 40.80 lakh excess available from the preceding year, the total amount available for set-off in succeeding financial years reached Rs. 59.30 lakh. Ramco Industries reported no administrative overhead expenditure, impact assessment cost, CSR-generated surplus or spending on ongoing projects. It also created or acquired no capital asset through CSR funds, while impact assessment was not applicable. Separately, the company spent Rs. 80 lakh on social causes that did not qualify under Schedule VII classifications.
Governance Structure Disclosed
Ramco Industries’ CSR Committee comprised Chairman P.R. Venketrama Raja, Managing Director P.V. Abinav Ramasubramaniam Raja and Independent Director Hariharan Thiagarajan. One committee meeting was held on May 23, 2025. The company said its CSR policy is guided by the principle that society and surrounding communities should grow alongside the organisation. Its objectives include sustainable business conduct, community programmes near work locations and the creation of long-term social goodwill. The annual report confirms that the company fulfilled its CSR requirement for FY 2025-26, recorded no unspent balance and positioned the year’s excess expenditure for adjustment against eligible obligations in future periods.
Company Business Profile
Ramco Industries Limited is a listed Indian building materials manufacturer with operations spanning fibre cement sheets, calcium silicate boards, textiles and wind power generation. Headquartered in Tamil Nadu, the company primarily serves domestic markets through its network of manufacturing facilities across several Indian states. Its building products portfolio includes roofing sheets, non-asbestos boards, wall and ceiling solutions and modern dry-construction products marketed under established brands. The textile division manufactures cotton yarn through Sri Ramco Spinners, while 15 windmills with installed capacity of 16.73 MW support captive energy requirements and generate revenue through the sale of surplus renewable electricity to customers.
Financial Performance Strengthens
Ramco Industries delivered improved standalone financial performance in FY 2025-26, with total revenue rising 2.6% to Rs. 1,493.93 crore from Rs. 1,455.47 crore. Operating profit increased 14.5% to Rs. 189.42 crore, while profit before tax climbed 26.4% to Rs. 145.84 crore. Profit after tax grew 25.9% to Rs. 111.26 crore from Rs. 88.36 crore. EBITDA reached Rs. 197.51 crore, compared with Rs. 165.42 crore previously. Consolidated profit after tax stood at Rs. 135.63 crore, up from Rs. 93.65 crore. Borrowings declined to Rs. 169.20 crore, while earnings per share improved to Rs. 12.82 during the year on a year-on-year basis.
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