Detailed Narrative
Q4 and Full-Year FY26 Financial Performance
J K Cements reported a strong Q4 FY26 with Net Sales increasing by 15% QoQ to ₹3,614 crores, and EBITDA growing 25% QoQ to ₹670 crores. PAT saw a significant 91% QoQ jump to ₹345 crores. For the full fiscal year 2026, Net Sales reached ₹12,568 crores, a 16% YoY increase, while EBITDA grew 18% YoY to ₹2,318 crores. Full-year PAT stood at ₹1,033 crores, up 21% YoY. The EBITDA margin for the full year was 18.5%, slightly up from 18.2% in the previous year.
Capacity Expansion and Project Updates
The company commissioned its 6 million ton greenfield expansion in Buxar, Bihar, contributing to a total 6 MT capacity addition in Central India. Additionally, the Muddapur plant's capacity was increased by 1 million tons, from 3.5 MT to 4.5 MT. Work has commenced on a new 7 MT greenfield project in Jaisalmer, with an expected cost of ₹3,630 crores and commissioning targeted for H1 FY28. The 6 lakh ton Wall Putty plant at Nathdwara, Rajasthan, is in advanced stages and expected to be commissioned by September.
Capital Expenditure Plans
J K Cements has outlined substantial capital expenditure plans, guiding for ₹3,500-4,000 crores for FY27 and ₹1,500-2,000 crores for FY28. These investments are allocated towards ongoing greenfield projects like Jaisalmer, grinding units in Bikaner and Punjab, the Nathdwara Wall Putty plant, and other normal capex including solar tie-ups, Saifco, paint, and coal block investments. The Panna project is expected to see savings of ₹200-300 crores, reducing its overall cost.
Debt Position and Shareholder Returns
As of March 31, 2026, the company's gross debt stood at ₹5,136 crores, with net cash of ₹1,765 crores, resulting in a net debt of ₹3,370 crores. The net debt to EBITDA ratio was 1.45, and net debt to equity was 0.48. The Board of Directors proposed a final dividend of ₹20 per share, subject to shareholder approval, reflecting a commitment to shareholder returns.
Cost Reduction and Green Initiatives
The company continues its focus on cost reduction, targeting an additional ₹50 per ton in savings this fiscal year. These savings are primarily driven by increased green power utilization and the use of Alternate Fuels and Raw Materials (AFR) in both South and North plants. The share of green power is expected to increase to 55% by FY27 and further to 75% by FY28, indicating a strategic shift towards sustainable and cost-efficient operations.
White Cement and Paint Business Outlook
For the White Cement business, the company expects to meet the entire domestic demand from its local production, with prices increased to pass on higher input costs, particularly chemicals. Consolidated White Cement volumes are projected to grow by 8-10%. The paint business, which incurred a loss of ₹40 crores in FY26, is targeted to achieve a top line of ₹500-550 crores in FY27 and reach breakeven on marginal EBITDA, signaling an expected turnaround.