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    JSW Cement Q1 FY27 earnings call

    JSWCEMENT
    Construction Materials·14 Aug 2026
    Management Summary

    JSW Cement Limited reported strong top-line growth in Q1 FY27, with revenue up 22% YoY and total sales volume increasing 15% YoY, driven by robust cement demand and the successful launch of North operations. However, profitability was impacted by higher fuel costs and significant marketing investments in the new North region, leading to a 7.5% YoY decline in consolidated operating EBITDA. The company remains optimistic about future cost reductions from efficiency projects and expects high teens volume growth for the full year.

    Highlights

    5

    • Total sales volume grew 15% Y-o-Y to 3.81 million tons, with cement volumes up 27% Y-o-Y to 2.34 million tons.

    • Consolidated revenue increased by 22% Y-o-Y to INR 1,896 crores.

    • North region operations, newly started, saw approximately 11% Y-o-Y demand growth and reached 68% utilization by June '26.

    • Cement realization improved by 6% Q-o-Q to INR 4,951 per ton, indicating pricing power.

    • Added 56 MW of wind capacity in Q1, boosting renewable energy share to 30% and contributing to cost efficiency.

    Concerns

    4

    • Consolidated operating EBITDA declined by 7.5% Y-o-Y to INR 299 crores.

    • Operating EBITDA per ton was INR 784, impacted by higher fuel and packing costs.

    • North operations incurred an operating loss of INR 40 crores, including INR 33 crores in marketing investment.

    • GGBS volume growth was muted at 2.6% Y-o-Y due to topical events like RMC closures and aggregate availability issues.

    Key financials

    Single quarter

    10 metrics
    1. 01Consolidated Revenue₹1,896 Cr+22%YoY
    2. 02Consolidated Operating EBITDA₹299 Cr-7.5%YoY
    3. 03Consolidated Operating EBITDA per ton₹784
    4. 04PAT₹153 Cr
    5. 05Total Sales Volume3.81 MT+15%YoY

    Segment breakdown

    North Operations
    ₹40 Cr Operating Loss₹33 Cr Marketing Investment55.0% Capacity Utilization68% Capacity Utilization (June '26)
    Excluding North Operations
    10% Revenue Growth₹336 Cr Operating EBITDA979 Rs/ton Operating EBITDA per ton
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹337 crores this quarter · ₹2,300 crores (FY27) planned

    Debt

    Net ₹3,856 crores · 3.0x EBITDA

    Cost 7.6%

    Guidance & targets

    14
    CategoryTargetPriority
    Volume
    Overall Company Volume Growth
    high teens growth
    		Medium
    Volume
    GGBS Volume Growth
    high single digits
    		Medium
    Profitability
    North Operations Profitability
    profitable
    		High
    Profitability
    North Operations Break-even
    break even
    		High
    Capacity
    North Operations Capacity Utilization
    60% plus
    		Medium
    Capacity
    Total Capacity
    43.5 MTPA
    		High
    Capacity
    Renewable Energy Share
    60% plus
    		High
    Capacity
    Nagaur Grinding Capacity Commissioning
    1 million ton
    		High
    Capacity
    Fujairah Expansion Commissioning
    operational
    		High
    Capacity
    Dolvi Expansion Commissioning
    operational
    		High
    Debt
    Net Debt to EBITDA
    below 3.0x
    		High
    Capex
    FY27 Capex
    INR 2,300 crores
    		High
    Capex
    FY28 Capex
    INR 2,000 crores
    		High
    Marketing
    Annual Marketing Expenditure (Company Level)
    INR 130 crores
    		High

    What to watch in Q2 FY27

    5

    North Operations Profitability

    September (Q2 FY27)
    CurrentOperating loss of INR 40 crores
    TargetBreak-even/profitable

    Why it matters

    Key to overall profitability and validation of new market entry strategy.

    By the end of September, or I can say in September is when we break even, and then we go in the positive territory.

    Risks & concerns

    6
    RiskSeverity

    Elevated Fuel Prices

    Fuel prices remain elevated, company is increasing share of domestic fuel to optimize costs. — Management acknowledged

    medium

    Geopolitical Uncertainty (West Asia)

    Ongoing uncertainty around West Asia crisis is being monitored. — Management acknowledged

    low

    Impact of State Elections

    State elections held early in the quarter affected demand temporarily. — Management acknowledged

    low

    Muted GGBS Demand

    GGBS growth was affected by RMC closures, aggregate availability issues, and low OPC/slag mix cost. — Management acknowledged

    medium

    Labor Migration

    Labor migration from operating geographies impacted operations. — Management acknowledged

    low

    Capacity Expansion Delays (Punjab)

    Slight delays in Punjab expansion related to land acquisition, but now behind them. — Management acknowledged

    low

    Q&A highlights

    8

    “So this expenditure in terms of marketing of INR33 crores was primarily around the new campaign launch which was undertaken on the back of the launch in the North... it was planned in our BP and we are tracking ourselves against that. ... Yes, we should be. As we had mentioned, in the first quarter we were close to 55% of capacity utilization, and we are holding ourselves for that. In fact, we should be closer to 60% plus by the end of the year in terms of our North operations.”

    Analyst questioned the INR 40 crore loss in North, including INR 33 crore marketing spend, and management provided clarity on the purpose of the spend and confidence in achieving profitability by year-end.

    asked by Prateek Kumar

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Volume Growth Despite Profitability Headwinds

    JSW Cement reported a robust Q1 FY27 with total sales volume increasing 15% YoY to 3.81 million tons, and cement volumes specifically growing 27% YoY to 2.34 million tons. Consolidated revenue also saw a healthy 22% YoY increase, reaching INR 1,896 crores. However, consolidated operating EBITDA declined by 7.5% YoY to INR 299 crores, primarily due to elevated fuel costs (blended fuel cost rose to INR 1.80 per Mcal) and a significant INR 33 crores marketing investment in the newly launched North region.

    02

    North Operations Launch and Profitability Outlook

    The company commenced sales in the North region this quarter, which experienced approximately 11% YoY demand growth. Despite an average utilization of 55% (reaching 68% by June 2026), North operations incurred an operating loss of INR 40 crores, largely due to the initial marketing push. Management expressed confidence that the North region will break even by September and turn profitable by the end of FY27, with utilization expected to exceed 60% by year-end.

    03

    Strategic Capacity Expansion and Efficiency Initiatives

    JSW Cement spent INR 337 crores on capex in Q1 FY27 and has a planned capex of INR 2,300 crores for the full fiscal year, with another INR 2,000 crores for FY28. Key projects include the commissioning of the Nagaur integrated unit and an additional 1 million ton grinding capacity by Q2 FY27, which are anticipated to significantly reduce costs. The company also added 56 MW of wind capacity in Q1, increasing its renewable energy share to 30%, with a target to reach over 60% by the end of FY27.

    04

    GGBS and RMC Business Performance

    GGBS volume growth was relatively muted at 2.6% YoY in Q1, attributed to temporary factors such as RMC closures in the West and aggregate availability issues in the South. Despite this, management remains optimistic, forecasting high single-digit growth for GGBS for the year, supported by a robust project pipeline. The RMC business, which currently operates 15 plants and plans to add 35 more, generated INR 180 crores in revenue for Q1, with aggressive scaling-up plans integrated with cement operations.

    05

    Disciplined Capital Structure and Long-term Vision

    The company maintained a net debt of INR 3,856 crores at the end of June, with a net debt to EBITDA ratio of 2.95 times, and a stable cost of debt at 7.63%. Management reiterated its internal guidance to keep the net debt to EBITDA ratio below 3.0x, demonstrating a disciplined approach to leverage. JSW Cement aims to expand its total capacity from 24.1 MTPA to 43.5 MTPA over the next few years, requiring a total capex of INR 7,500-7,600 crores, with Central region expansion also a priority.

    This is an AI-generated summary of a publicly available earnings call transcript.