JK Cement reported a robust 21% year-on-year increase in net sales for the second quarter of FY27, reaching INR3,561 crore, driven by strong volume growth in grey cement. The company also announced plans for significant capacity expansion and provided updates on ongoing project commissioning, aiming for 50 million tons by FY30. Management expressed confidence in maintaining profitability and market share.
JK Cement Reports Strong Q2 FY27 Performance
JK Cement Limited has announced its financial results for the second quarter and half year ended September 30, 2026. The company achieved a notable 21% year-on-year increase in net sales for the quarter, reaching INR3,561 crore, compared to INR2,932 crore in the same period last year. For the half year, net sales grew by 21% to INR7,457 crore from INR6,167 crore.
Volume Growth Drives Revenue
The primary driver for this revenue growth was a significant increase in grey cement volumes, which grew by 19.38% to 11.3 million tons for the half year. White cement volumes also saw a substantial increase of 19% to 10.32 lakh tons in the six-month period. The company also highlighted the commissioning of a wall putty plant at Nathdwara, increasing its total white cement and putty capacity to 3.65 million tons.
Capacity Expansion and Future Outlook
JK Cement reaffirmed its ambitious plan to achieve a 50 million ton capacity by FY30. Key projects, including the integrated site at Jaisalmer and grinding stations at Bikaner, are progressing on schedule, with commissioning targeted for the first half of FY28. Approvals for the Bathinda plant have been received, with work expected to commence shortly, targeting commissioning by September 2027. The company also approved a proposal for a JK Maxx white cement paint plant with an investment of INR130 crore.
Financial Highlights
Standalone financial results showed a 28% quarter-on-quarter increase in revenue to INR3,516 crore and a 25% increase to INR7,301 crore for the half-year period. EBITDA for the quarter stood at INR500 crore, up from INR440 crore last year. The company’s gross debt as of September 30, 2026, was INR6,255 crore, with cash available at INR1,684 crore, resulting in a net debt of INR4,571 crore. The net debt to equity ratio was 0.63, and net debt to EBITDA was 1.95.
Cost and Pricing Trends
Management addressed concerns about rising input costs, particularly for petcoke and domestic coal, acknowledging a potential increase in cost per Kcal to around INR2. However, they indicated that partial benefits from inventory and strategic sourcing would mitigate some of the impact, with the full effect expected to be felt by Q4. The company also noted a price increase of approximately INR20 per bag in the latter part of September, with a further need for INR10-INR15 to cover cost pressures.
Segment Performance and Investments
The paint business revenue for the quarter was INR116 crore, and the company maintained its full-year guidance for the segment. The RMC and construction chemicals business reported INR60 crore in revenue for the quarter. The company is investing in growing its premium product segment, which is seen as key to improving profitability and capturing market share. Future capex is expected to be around INR2,500 crore annually in the coming years, largely funded by internal accruals.
Source: BSE
