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    J K Cements

    JKCEMENT
    Construction Materials·20 Jul 2026
    Management Summary

    J K Cements reported a robust 22.2% YoY increase in consolidated net sales to ₹3,962 crores for Q1 FY27, driven by strong volume growth in grey and white cement, particularly from new capacities. However, profitability was impacted by higher costs, leading to a decline in standalone EBITDA margins to 16.9% and per-ton EBITDA to ₹982. The company is on track with its major capacity expansion projects and aims for significant growth in RMC and paint businesses, while managing rising fuel costs and regional capacity constraints.

    Highlights

    5

    • Consolidated Net Sale increased by 22.2% YoY to ₹3,962 crores, driven by product mix and price improvement.

    • Grey cement volumes showed strong 19% YoY growth, primarily from new capacities in Central India and Bihar.

    • White cement volumes grew 11% YoY, benefiting from reduced imports from UAE due to geopolitical situations.

    • The paint business achieved breakeven in Q1 FY27 with ₹125 crores revenue, and is targeting over ₹500 crores top line for FY27.

    • The Jaisalmer greenfield project and Bhatinda grinding unit are progressing on schedule for commissioning by H1 FY28.

    Concerns

    5

    • Standalone EBITDA declined by 4.6% YoY to ₹639 crores, with EBITDA margins compressing to 16.9% from 21.9% in Q1 FY26.

    • Per ton EBITDA decreased to ₹982 in Q1 FY27 from ₹1,229 in Q1 FY26, impacted by higher costs.

    • Management expects costs to increase by ₹150 per ton in Q2 FY27, mainly due to fuel and diesel price hikes.

    • Net debt increased to ₹3,864 crores as of June 30, 2026, from ₹3,370 crores as of March 31, 2026.

    • Capacity in North and South regions is constrained, limiting growth opportunities outside Central India.

    Key financials

    Single quarter

    06 metrics
    1. 01Consolidated Net Sale₹3,962 Cr+22.2%YoY
    2. 02Consolidated EBITDA₹648 Cr-5.8%YoY
    3. 03Consolidated PBT₹406 Cr-16.9%YoY
    4. 04EPS₹35.9-14.3%YoY
    5. 05Standalone Per Ton EBITDA₹982-20.1%YoY

    Segment breakdown

    • RMC Business₹35 Cr21.9%
    • Paint Business₹125 Cr78.1%
    Donut· Share of Revenue

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹3,500 crores

    Debt

    Gross ₹5,551 crores · Net ₹3,864 crores · 1.7x EBITDA

    Liquidity

    Cash ₹1,686 crores

    Guidance & targets

    11
    CategoryTargetPriority
    Volume
    Grey Cement Volume
    22.5 to 23 million tons
    		High
    Cost
    Cost Increase per Ton
    ₹150
    		High
    Capacity
    Total Cement Capacity
    40 million tons
    		High
    Capacity
    Total Cement Capacity
    50 million tons
    		High
    RMC Business
    Number of RMC Plants
    50
    		High
    RMC Business
    Quarterly Revenue
    ₹100 crores
    		Medium
    Paint Business
    Net Top Line
    over ₹500 crores
    		High
    Paint Business
    EBITDA Margin
    5-7%
    		Medium
    Green Power
    Green Power Mix
    75%
    		High
    Incentive Income
    Annual Incentive Income
    ₹300 crores
    		Medium
    Capex
    Capex Plan
    ₹1200 crores
    		High

    What to watch in Q2 FY27

    5

    Q2 FY27 Cost Increase per Ton

    next quarter
    Current₹150 increase expected in Q2 FY27
    TargetVerification of actual cost increase in Q2 FY27

    Why it matters

    To assess the impact of rising fuel costs on profitability and management's ability to pass on costs.

    So, see the cost should go up by about say INR150 in Q2 as compared to Q1.

    Risks & concerns

    4
    RiskSeverity

    Fuel Cost Volatility due to Geopolitical Situation

    Geopolitical situation is causing uncertainty in fuel availability and pricing, leading to expected cost increases in Q2 FY27. — Management acknowledged

    high

    Capacity Constraints in North and South Regions

    Existing capacity in North and South is limited, restricting volume growth in these regions despite demand. — Management acknowledged

    medium

    Monsoon Seasonality Impact on Pricing

    Traditionally, prices fall during monsoon, but management expects no sharp drop due to cost pressures. — Management downplayed

    low

    White Cement Import Normalization from UAE

    Reduced white cement imports from UAE currently benefit the company, but normalization could reintroduce competitive pressure. — Management acknowledged

    medium

    Q&A highlights

    8

    “So, see the cost should go up by about say INR150 in Q2 as compared to Q1. One, we have already I mean see some fuel cost increase would be there. There's also been like in the costs some packaging cost which was higher in Q1, that will go down in Q2. So overall, you know, with diesel and everything we expect that the cost should go up by INR150 a ton.”

    Management provided a specific numerical guidance for cost increase in the next quarter, crucial for margin forecasting.

    asked by Patanjali Srinivasan

    3 min read7 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview

    J.K. Cement Limited reported a consolidated net sale of ₹3,962 crores for Q1 FY27, marking a 22.2% year-on-year growth and a 4% quarter-on-quarter increase. Standalone net sale was ₹3,786 crores, up 23.3% YoY. However, standalone EBITDA declined by 4.6% YoY to ₹639 crores, with margins compressing to 16.9% from 21.9% in the previous year. Per ton EBITDA stood at ₹982, down from ₹1,229 in Q1 FY26, reflecting cost pressures.

    02

    Volume Growth and Regional Dynamics

    The company achieved strong volume growth in Q1 FY27, with grey cement volumes increasing by 19% YoY and white cement volumes by 11% YoY. Combined volumes grew 18% YoY. This growth was primarily driven by new capacities commissioned in Central India and Bihar. While demand remains supportive, capacity constraints in the North and South regions limit further growth in those markets, with current utilization levels estimated at 85-90%.

    03

    Cost Outlook and Fuel Mix Strategy

    Management anticipates a cost increase of approximately ₹150 per ton in Q2 FY27, with ₹100 attributed to fuel costs and ₹50 to other factors like diesel. The fuel mix in Q1 FY27 was 40% pet coke, 45% Indian coal, and the balance from alternate fuels. The company continuously evaluates its fuel mix to optimize costs, utilizing imported US coal when it is cheaper than pet coke. The Mahan coal block is expected to be commissioned by end of FY28, promising substantial cost savings and reduced risk exposure.

    04

    Capacity Expansion and Project Updates

    The greenfield project at Jaisalmer is progressing well and is targeted for commissioning within the first half of FY28. The grinding unit at Bhatinda is also on track. The company has acquired land for a second split grinding location in Punjab. The expansion of the wall putty unit in Rajasthan is nearing completion and is expected to be commissioned in Q2 FY27. Overall, the company aims for a total cement capacity of 40 million tons by FY28 and 50 million tons by FY30.

    05

    White Cement and RMC Business Performance

    The white cement business experienced a healthy 11% YoY volume growth in Q1 FY27, partly due to reduced imports from UAE caused by geopolitical situations. The RMC business, which had exited Q4 FY26 with only ₹5 crores in revenue, reported ₹35-40 crores in Q1 FY27. The company plans to expand to 50 RMC plants by FY27 and 100 by FY28, targeting a quarterly revenue run rate of ₹100 crores by year-end FY27 and an annual topline of ₹250 crores for FY27.

    06

    Paint Business Development

    The paint business, which includes brands like Acro and Maxx, generated approximately ₹125 crores in revenue in Q1 FY27 and achieved breakeven. Management expects the paint business to achieve a net top line of over ₹500 crores for FY27 and aims for a 5-7% EBITDA positive margin by FY28, with an additional ₹150 crores increase in top line. The company is developing this business using the existing putty platform and its earnings.

    07

    Capital Allocation and Debt Profile

    As of June 30, 2026, gross debt stood at ₹5,551 crores, with a cash balance of ₹1,686 crores, resulting in a net debt of ₹3,864 crores. The net debt to EBITDA ratio was 1.69, and net debt to equity was 0.53. The company has a capex plan of ₹3,500 crores for FY27 and ₹1,200 crores for FY28, with further additional capex planned for the next phase of expansion. Incentive income is projected to reach ₹300 crores annually from FY29 onwards.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.