J K Cements — Q1 FY27 earnings call

Call held 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

  • 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

  • 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

  1. Consolidated Net Sale ₹3,962 Cr +22.2%YoY
  2. Consolidated EBITDA ₹648 Cr -5.8%YoY
  3. Consolidated PBT ₹406 Cr -16.9%YoY
  4. EPS ₹35.9 -14.3%YoY
  5. Standalone Per Ton EBITDA ₹982 -20.1%YoY
  6. Standalone EBITDA Margin 16.9%

What they filed

Q1 FY27: revenue up 20.3%, net profit down 15.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,560 2,930 3,581 3,353 3,019 +18%3,463 +18%3,888 +9%4,032 +20%
EBITDA284 492 765 688 447 +57%557 +13%682 −11%648 −6%
Net profit136 190 361 324 159 +17%174 −8%331 −8%275 −15%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹160 Cr Total
  • Paint Business ₹125 Cr 78.1%
  • RMC Business ₹35 Cr 21.9%

Capital allocation

high confidence
  • Capex ₹3,500 Cr
    • Jaisalmer greenfield project commissioning
    • Bhatinda grinding unit
    • Rajasthan wall putty expansion
    for FY27 we have a plan to do around INR3500 crores of capex. And in '28 also it will be around INR1200 crores and if we take up the I mean the next leg of expansion that that would be additional.
  • Debt Gross ₹5,551 Cr · Net ₹3,864 Cr · 1.7× EBITDA
    As far as the debt profile as on 30th June, the gross debt stood at INR5,551 crores as compared to INR5,136 crores as on 31st March. The cash balance as on 30th June is INR1,686 crores compared to INR1,765 crores. The net debt is higher at INR3,864 crores as on 30th June compared to INR3,370 crores as on 31st March. If we look at the net debt to EBITDA as on 30th June, the same is at 1.69 and net debt to equity is 0.53.
  • Liquidity Cash ₹1,686 Cr
    The cash balance as on 30th June is INR1,686 crores compared to INR1,765 crores.

Guidance & targets

Volume

  • Grey Cement Volume Volume · FY27 · High confidence 22.5 to 23 million tons
    Yes, so we have already, the plan we are expecting, closer to 22.5 to 23 million in this quarter - in this year. So we are working towards that and so we will have a double definitely a good double-digit growth in this fiscal

    — Ajay Saraogi

Cost

  • Cost Increase per Ton Cost · Q2 FY27 · High confidence ₹150
    So, see the cost should go up by about say INR150 in Q2 as compared to Q1.

    — Ajay Saraogi

Capacity

  • Total Cement Capacity Capacity · FY28 · High confidence 40 million tons
    So, with respect to our expansion, I think we are trying for a 40 million in FY28 and 50 million in FY30.

    — Ajay Saraogi

  • Total Cement Capacity Capacity · FY30 · High confidence 50 million tons

    — Ajay Saraogi

RMC Business

  • Number of RMC Plants RMC Business · FY27 · High confidence 50
    So as we see we have a plan to have about 100 RMC plants by FY28, 50 by FY27.

    — Ajay Saraogi

  • Quarterly Revenue RMC Business · by year end FY27 · Medium confidence ₹100 crores
    And I think by this year end, we should be touching a base of about definitely maybe INR100 crores quarterly.

    — Ajay Saraogi

Paint Business

  • Net Top Line Paint Business · FY27 · High confidence over ₹500 crores
    I mean today last year we did about INR380 crore, we are expecting over INR500 crores net top line.

    — Ajay Saraogi

  • EBITDA Margin Paint Business · FY28 · Medium confidence 5-7%
    EBITDA positive good EBITDA 5%, 7% in FY28 definitely for the paint business with the top line also increasing by another 150 crores or so.

    — Ajay Saraogi

Green Power

  • Green Power Mix Green Power · FY30 · High confidence 75%
    And similarly also on the green power mix you have a 75% target for FY30.

    — Ajay Saraogi

Incentive Income

  • Annual Incentive Income Incentive Income · FY29 onwards · Medium confidence ₹300 crores
    FY29 onwards I think this number should come to the number of about INR300 crores annually which we were getting earlier.

    — Ajay Saraogi

Capex

  • Capex Plan Capex · FY28 · High confidence ₹1200 crores
    And in '28 also it will be around INR1200 crores and if we take up the I mean the next leg of expansion that that would be additional.

    — Ajay Saraogi

What to watch in Q2 FY27

Q2 FY27 Cost Increase per Ton

next quarter
Current ₹150 increase expected in Q2 FY27
Target Verification 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

  • Fuel Cost Volatility due to Geopolitical Situation

    high

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

    If that situation really aggravates and has some impact, I it's very difficult to say anything now at this point of time. But otherwise we are not feeling that, any postponement or any delays in our plans.

    Management acknowledged

  • Capacity Constraints in North and South Regions

    medium

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

    But because the growth engine the growth opportunities presently with us are only in the Central India.

    Management acknowledged

  • White Cement Import Normalization from UAE

    medium

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

    So some imports have come in, I mean from the competition competitor so some clinker and cement has come in. It's still some is yet to come, not the normal quantities as yet, but definitely some quantities have started coming. But we have to see wait and watch.

    Management acknowledged

  • Monsoon Seasonality Impact on Pricing

    low

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

    And we expect that this time in the monsoon because of the cost pressures because of the geopolitical situation, we are not seeing any we should not be seeing any price drop in spite of being, some low volumes because of the seasonality.

    Management downplayed

Q&A highlights

7 direct
Q2 FY27 Cost Outlook Direct
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

Sustainability of Volume Growth Partial
Yes, so we have already, the plan we are expecting, closer to 22.5 to 23 million in this quarter - in this year. So we are working towards that and so we will have a double definitely a good double-digit growth in this fiscal, but I mean may not be that, we sustain if the demand continues, presently the demand is also supportive and if support in demand continues and we would be growing, but again see today we have some restriction in terms of capacity availability of capacity in the North and South.

Management confirmed expectations for double-digit growth for the fiscal year but highlighted capacity constraints in North and South as a limiting factor.

Asked by Pinakin Parekh

White Cement Segment Performance and Pricing Direct
So Navin, what has happened in the white business, this geopolitical situation, I mean had some on the white business per se had some positive impact for the company in terms of, a lot of volume was coming from UAE, the imports which were coming from UAE, that did not come here. So as a result we had that opportunity for extra volumes in in case of white cement and putty.

Management attributed strong white cement performance to reduced imports from UAE due to geopolitical factors, indicating a temporary advantage.

Asked by Navin Sahadeo

Coal Block Operationalization and Savings Direct
So we have two coal blocks. So out of which the larger coal block which is at Mahan, where we because we had made a good progress and I think we should be able to by end of FY28, we should be able to commission this have some coal starting coming from FY end of FY28 from this coal block. ... As regards the saving, yes, there would be substantial saving.

Management provided a timeline for commissioning a key coal block, which is expected to yield substantial cost savings and reduce risk exposure.

Asked by Siddhart

Paint Business Revenue and Breakeven Direct
For the paints the revenue was around INR125 crores and it was breakeven.

Management confirmed the paint business achieved breakeven in Q1 FY27, a significant milestone for the newer segment.

Asked by Siddhart

RMC Business Revenue and Growth Targets Direct
So for full of FY27 what sort of revenue you're looking from the RMC segment? ... See we are just working out. This is I think [inaudible 0:42:05] as a ballpark number if you see maybe we have about INR250 crores topline in this fiscal from the RMC business.

Management provided a specific revenue target for the RMC business for FY27, indicating its growing contribution.

Asked by Rajesh Ravi

Grey Cement Volume Target for FY27 Direct
Last time we were looking at close to 2.5 million ton incremental volume in FY27 and given the strong number don't we think we should be at least doing a 3 million ton extra volume in this year and maybe a last time also we said in FY28 we will be doing a incremental 3 million, that number should be a inching 3.5 million ton incremental volume.

Analyst pushed for a higher incremental volume target for FY27 given Q1 performance, which management acknowledged as a possibility depending on demand.

Asked by Amit Murarka

Panna Line 2 Clinker Capacity and Constraints Direct
So, A, when we are working the kiln on an expanded capacity of 4 million for Line 2, we have been working on that, and I think, we would be able to achieve the same in this fiscal. As of now we do not foresee any clinker shortage for the volumes in Central India.

Management confirmed that Panna Line 2 will achieve its expanded 4 million tons capacity this fiscal year and does not foresee clinker shortages in Central India.

Asked by Amit Murarka

3 min read 7 chapters

Detailed narrative

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.

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%.

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.

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.

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.

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.

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.
View original transcript

More Construction Materials earnings calls