JK Lakshmi Cement hosted an earnings call to discuss Q3 and 9M FY26 results. Key discussion points included a drop in trade sales share in Q3 FY26 due to increased Gujarat volumes, the commissioning of the Surat grinding station in September 2025, and pricing trends. The management anticipates improved demand and pricing in the coming months. The call also provided updates on the Durg expansion project and cost optimization measures.
Financial Performance Discussion
During the call, management addressed concerns regarding a decrease in trade sales share in Q3 FY26, clarifying that this was primarily due to increased sales volume in Gujarat, a predominantly non-trade market, following the commissioning of the Surat grinding station in September 2025. They assured investors that this was a temporary situation and trade volumes had already started recovering in December and January.
The company also noted a period of market confusion post GST reduction on September 22nd, leading to increased demand in the non-trade segment.
Pricing and Market Dynamics
Management expressed optimism regarding pricing scenarios, anticipating a rise in both trade and non-trade prices due to improved demand and increasing fuel costs. They noted that non-trade prices had already increased in most markets since December.
The company is seeing double digit growth in Q4 and the industry is expected to grow about 7% yearly.
Project Updates and CAPEX
The Durg Line-2 project is on track for completion by March 2028, including all spread locations. The company has incurred approximately ₹250-260 crores in CAPEX for the project to date and expects to spend close to ₹400 crores in the current financial year.
The company expects to spend between ₹1,600 crores to ₹1,700 crores next year on CAPEX.
Cost Optimization
JK Lakshmi Cement has been actively working on improving productivity across its various locations, leading to a reduction in employee costs. This effort is ongoing, with plans to further enhance productivity and efficiency. They reduced power costs from 5.52 to 5.37 per unit.
Non-Cement Business
Non-cement revenue was reported at ₹147 crores, including ₹67 crores from RMC and ₹56 crores from AAC blocks.
Source: BSE
