Financial Performance Highlights

Q2 FY27 Standalone Performance (YoY)

  • Net Sales: Increased 21% to INR 3,561 crores from INR 2,932 crores
  • EBITDA: INR 500 crores compared to INR 440 crores in previous year
  • Volume Growth: Grey cement volumes increased significantly, though specific tonnage not quantified for quarter

H1 FY27 Standalone Performance (YoY)

  • Net Sales: Increased 25% to INR 7,301 crores from INR 5,823 crores
  • EBITDA: INR 1,138 crores, up 2% from INR 1,113 crores
  • Grey Cement Volumes: 11.3 million tons, up 19.38% from 9.49 million tons
  • White Cement Volumes: 10.32 lakh tons, up 19% from 8.62 lakh tons

Consolidated Performance

  • H1 Net Sales: INR 7,457 crores, up 21% from INR 6,167 crores

Operational and Business Updates

Capacity Expansion

  • Wall Putty Plant: Commissioned 0.6 MTPA plant at Nathdwara, increasing total white cement and putty capacity to 3.65 MTPA
  • Jaisalmer Project: Integrated plant in advanced stage, on schedule for commissioning in first half of FY28
  • Bikaner Grinding Station: Progressing well, expected commissioning in first half of FY28
  • Bathinda Project: Approvals received, work to start shortly with target commissioning by September 2027

New Business Ventures

  • Paint Business: Approved JK Maxx paint plant of 75,000 KL capacity with investment of INR 130 crores (within overall INR 600 crores limit)
  • Paint Revenue: Q2 FY27 revenue of INR 116 crores; H1 FY27 approximately INR 250 crores
  • Paint Guidance: Maintained FY27 revenue guidance of INR 500-550 crores; targeting breakeven in FY27 with 3-5% EBITDA margins in FY28
  • RMC Business: Q2 revenue of INR 60 crores (Q1: INR 50 crores); currently 23 plants operational, targeting 50 plants by March 2027

Balance Sheet and Capital Structure

  • Gross Debt: INR 6,255 crores as of September 30, 2026 (vs. INR 5,136 crores previously)
  • Cash Position: INR 1,684 crores as of September 30, 2026 (vs. INR 1,755 crores previously)
  • Net Debt: INR 4,571 crores (vs. INR 3,370 crores previously)
  • Leverage Ratios: Net debt-to-equity 0.63; Net debt-to-EBITDA 1.95
  • Debt Projection: Expected to peak near INR 6,000 crores for 50 MTPA capacity expansion by FY30

Cost Structure and Guidance

Fuel Costs

  • Current Cost: INR 1.71 per Kcal in Q2 FY27
  • Cost Outlook: Expected to increase to approximately INR 2.00 per Kcal due to rising petcoke (USD 185-190) and domestic coal prices
  • Impact Timing: Partial impact in Q3 FY27 (INR 80-90/ton), full impact in Q4 FY27
  • Fuel Mix: 55% Indian coal, 13% alternate fuels, 32% petcoke

Other Cost Factors

  • Power Costs: Expected to increase due to fuel cost inflation
  • Packaging Costs: High but believed to have peaked; subject to rupee depreciation impact on granules
  • Incentives: Q2 incentive of INR 45 crores; expected run rate of ~INR 50 crores quarterly

Market and Demand Outlook

Volume Guidance

  • FY27 Target: Maintained at 23 million tons+ (grey cement)
  • Regional Performance: Strong growth in North market; Central India market share gains from recent expansion; East market slightly depressed
  • Market Challenges: Potential impact from drought in Karnataka/Maharashtra (15% of volumes), UP elections, Delhi construction bans, and festival season

Pricing Environment

  • Recent Increases: INR 20 per bag price increase implemented from mid-September to mid-October
  • Further Needs: Additional INR 10-15 per bag required to offset cost increases
  • Timing: Further increases possible after Diwali festival period

Premium Products

  • Strategy: Increasing premium product share across all markets
  • Margin Benefit: Premium products deliver approximately INR 150 extra profit per ton
  • Trade Share: Healthy growth in trade share supporting profitability

Expansion Projects and Capex

FY27 Capex

  • Budget: INR 3,500 crores

Future Capex

  • FY28-FY30: Approximately INR 2,500 crores annually for brownfield expansions
  • Expansion Targets: 50 MTPA capacity by FY30 via brownfield expansions at Muddapur and Panna (5-6 MTPA each)

Coal Blocks Development

  • Mahan Block: Work commenced; targeting operational in first half of FY29
  • Expected Cost: INR 1.00-1.25 per Kcal for captive coal
  • West Shahdol Block: Still in planning phase; update expected in 6-8 months

Regional Performance Details

Plant Utilization

  • Clinker Utilization: 95% in Q2
  • Cement Utilization: ~67-70% in Q2
  • Bihar Plant: ~50% utilization after 8 months of operation

Geographic Exposure

  • South Region: ~15% of total volumes (potential drought impact)
  • Central India: Market share gains from recent expansion
  • North Region: Maintaining market share

White Cement Business

  • India Capacity: 3.05 MTPA (white cement and putty)
  • UAE Capacity: 0.6 MTPA
  • Realization: Increased 7.5% sequentially in Q2 due to cost pass-through and supply constraints from Fujairah
  • Outlook: Further price increases challenging; volumes expected to remain stable with seasonal patterns

Q&A Session Key Takeaways

  • Fuel Mix Optimization: Limited by plant location (North/South plants reliant on imported fuels due to domestic coal availability constraints)
  • Volume Aspirations: While 24 million tons is possible, management maintains conservative 23 million tons guidance due to seasonal and regional uncertainties
  • Profitability Positioning: Company expects to remain among top 3-4 players in EBITDA per ton despite cost pressures
  • Paint Business Rationale: Expansion necessary to meet growing demand and avoid supply constraints; viewed as complementary to putty business

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