JK Cement Limited Q1 FY27 Earnings Conference Call

Financial Performance Highlights (Standalone)

  • Net Sales: Increased 23% YoY to ₹3,786 crores (from ₹3,068 crores in Q1 FY26) and 5% QoQ.
  • EBITDA: Stood at ₹639 crores, compared to ₹673 crores in Q1 FY26 and ₹670 crores in Q4 FY26.
  • EBITDA Margin: Was 16.9%, compared to 21.9% in Q1 FY26 and 18.5% in Q4 FY26.
  • Profit Before Tax (PBT): Was ₹423 crores, compared to ₹498 crores in Q1 FY26 and ₹460 crores in Q4 FY26.
  • Profit After Tax (PAT): Was ₹291 crores, compared to ₹333 crores in Q1 FY26 and ₹345 crores in Q4 FY26.
  • Per Ton EBITDA: Was ₹982 per ton, compared to ₹1,229 per ton in Q1 FY26 and ₹1,012 per ton in Q4 FY26.

Financial Performance Highlights (Consolidated)

  • Net Sales: Increased 22% YoY to ₹3,962 crores (from ₹3,242 crores in Q1 FY26) and 4% QoQ.
  • EBITDA: Stood at ₹648 crores, compared to ₹688 crores in Q1 FY26 and ₹683 crores in Q4 FY26.
  • Profit Before Tax (PBT): Was ₹406 crores, compared to ₹489 crores in Q1 FY26 and ₹444 crores in Q4 FY26.
  • Earnings Per Share (EPS): Was ₹35.90, compared to ₹41.90 in Q1 FY26 and ₹43.10 in Q4 FY26.

Volume Performance

  • Grey Cement Volumes: Grew 19% YoY but were down 2% QoQ.
  • White Cement & Putty Volumes: Grew 11% YoY but were down 5% QoQ.
  • Combined Volumes: Grew 18% YoY but were down 3% QoQ.
  • Volume growth was primarily driven by new capacity in Central India, including a grinding unit in Bihar, leading to market share gains in that region.

Debt and Liquidity Position (as of June 30, 2026)

  • Gross Debt: Increased to ₹5,551 crores from ₹5,136 crores as of March 31, 2026.
  • Cash Balance: Stood at ₹1,686 crores, down from ₹1,765 crores as of March 31, 2026.
  • Net Debt: Increased to ₹3,864 crores from ₹3,370 crores as of March 31, 2026.
  • Net Debt to EBITDA: Stood at 1.69x.
  • Net Debt to Equity: Stood at 0.53x.

Capital Expenditure (Capex) and Project Updates

  • FY27 Capex Guidance: ₹3,500 crores.
  • FY28 Capex Guidance: Approximately ₹1,200 crores.
  • Jaisalmer Greenfield Project: Progressing well and on track for commissioning in H1 FY28.
  • Bhatinda Grinding Unit: Progressing well.
  • Second Grinding Unit in Punjab: Land acquired; work to commence soon.
  • Wall Putty Expansion in Rajasthan: Nearing completion; expected commissioning in Q2 FY27.
  • Capacity Targets: 40 MTPA by FY28 and 50 MTPA by FY30. No plans to reschedule expansions.

Segment-Wise Performance and Guidance

1. Ready-Mix Concrete (RMC) Business:

  • Q1 FY27 Revenue: ₹35-40 crores (up from ~₹5 crores in Q4 FY26).
  • Exit Run-rate Target: ~₹100 crores per quarter by year-end.
  • Full-Year FY27 Revenue Target: ₹250-300 crores.
  • Plant Count: 17 plants operational; target of 50 plants by FY27 end and 100 plants by FY28.
  • EBITDA Margin Profile: Typically 4-7%; business is strategic for securing cement volumes from projects.
  • Expected to be EBITDA breakeven for FY27.

2. Paint Business:

  • Q1 FY27 Revenue: ~₹125 crores.
  • Full-Year FY27 Revenue Target: ₹500-550 crores.
  • Breakeven: Achieved at EBITDA level in Q1 FY27.
  • Capital Allocation: Limited to the approved ₹600 crores; focused on supporting the core putty business.

3. White Cement Business:

  • Benefited from a temporary reduction in import competition due to geopolitical issues restricting shipments from UAE.
  • Management expects competitive intensity to return as imports normalize.

Cost Structure and Outlook

  • Q1 FY27 Maintenance Cost: ~₹50-60 crores (partly preponed from Q2).
  • Q1 FY27 Incentive Income: ~₹50 crores.
  • Q2 FY27 Cost Guidance: Overall cost per ton expected to increase by ₹150, comprising:
  • ~₹100 per ton increase from higher fuel costs.
  • ~₹50 per ton increase from other costs (e.g., diesel).
  • Packaging costs are expected to be flat or marginally lower in Q2.
  • Fuel Mix in Q1: 40% pet coke, 45% Indian coal, 15% alternate fuels.
  • Fuel Cost per kcal: Expected to peak in Q2 at around 1.75, up from 1.53 in Q1.

Other Operational Highlights

  • Coal Blocks: The larger block at Mahan is expected to start production by end of FY28, leading to substantial cost savings and reduced fuel risk.
  • Thermal Substitution & Green Power: Targets of 35% TSR and 75% green power by FY30. Green power adoption has faced delays due to approval processes but is expected to increase 4-5% annually from next year.
  • Regional Utilization: Northern and Southern regions are operating at 85-90% utilization. Central India has room for growth from new capacities.
  • Clinker Capacity: The Panna Line 2 kiln is being debottlenecked from 3.3 MTPA to 4 MTPA, expected within FY27. No clinker shortage is foreseen.

Management Participants

  • Mr. Ajay Kumar Saraogi, Deputy Managing Director and Chief Financial Officer
  • Mr. Prashant Seth, President - Business Information and Investor Relations

Moderator: Mr. Vaibhav Agarwal from PhillipCapital India Private Limited.