Company and Document Details

JSW Cement Limited | Scrip Code: 544480 (BSE), JSWCEMENT (NSE)

Operational Highlights

Volume Performance

  • Total sales volume increased 15% YoY to 3.81 million tons in Q1 FY27
  • Cement volumes grew 27% YoY to 2.34 million tons
  • Excluding North operations, volume growth was 8% YoY
  • GGBS volume growth was muted at 2.6% YoY
  • North region achieved 55% average utilization in Q1, reaching 68% in June 2026

Regional Demand Context

  • Cement demand in South, West, and East regions grew approximately 6% YoY
  • North region demand grew substantially higher at approximately 11% YoY
  • Government capex grew 24% YoY with 28% of FY27 budget utilized in Q1
  • Strong infrastructure project pipeline identified across regions including bullet train projects in MMR, Pune Ring Road, Amaravati capital development, and NPCIL nuclear plant expansion

Realizations and Mix

  • Cement realization was ₹4,951 per ton, increasing 6% QoQ
  • Highest realization increase in East region followed by South and West
  • GGBS realization was ₹3,807 per ton, increasing 3.4% QoQ
  • Trade mix remained stable at 51%
  • Clinker to cement factor increased to 55% with North operations launch

Financial Performance

Consolidated Results

  • Revenue: ₹1,896 crores, increased 22% YoY and flat QoQ
  • Operating EBITDA: ₹299 crores, declined 7.5% YoY
  • Operating EBITDA per ton: ₹784 per ton
  • Total EBITDA including other income: ₹372 crores
  • PBT: ₹190 crores (includes ₹13 crores positive contribution from Fujairah operations)
  • PAT: ₹153 crores

Ex-North Performance

  • Revenue growth approximately 10% QoQ
  • Operating EBITDA increased 4% to ₹336 crores
  • Operating EBITDA per ton: ₹979 per ton

Cost Analysis

  • Blended fuel cost increased to ₹1.80 per Mcal from ₹1.49 per Mcal in previous quarter
  • Logistic cost per ton reduced by 2% QoQ with 4km reduction in lead distance
  • Other expenses increased 4.5% QoQ due to marketing investment in North and higher packing costs
  • North operations reported operating loss of ₹40 crores including ₹33 crores marketing investment

Balance Sheet and Capex

  • Net debt: ₹3,856 crores at end of June 2026
  • Net debt to EBITDA: 2.95 times
  • Average cost of debt: 7.63% (stable QoQ)
  • Q1 Capex: ₹337 crores
  • Full-year FY27 Capex guidance: ₹2,300 crores

Strategic Updates and Expansion Plans

Capacity Expansion Progress

  • WHRS, OLBC, and AFR co-processing system at Nagaur integrated unit expected to commission in coming weeks
  • Additional 1 million ton grinding capacity in Nagaur expected by end of Q2 FY27
  • 56 MW wind capacity added at Dolvi and Vijayanagar in Q1
  • Renewable energy share reached 30% in Q1
  • Target to achieve 60%+ renewable energy share by Q3 FY27

Long-term Capacity Vision

  • Current capacity: 24.1 million tons
  • Target capacity: 43.5 million tons (requires ₹7,500-7,600 crores capex)
  • FY27 Capex: ₹2,300 crores, FY28 Capex: ₹2,000 crores
  • Central region plant announcement expected in coming quarters
  • Punjab expansion awaiting EC clearance (₹50-60 crores spent on land)
  • Fujairah expansion: Groundbreaking completed, expected operational within 12 months
  • Dolvi expansion: Planning to start soon (15-month timeline)

North Operations Details

  • Nagaur project total capex: ₹3,500 crores
  • Amount spent so far: ₹2,400-2,500 crores
  • Marketing investment of ₹33 crores in Q1 for campaign launch and ground activations
  • Expect EBITDA breakeven in Q2 FY27
  • Target utilization: 60%+ by year-end
  • Incentives of ₹50 crores for first three years awaiting eligibility certificate (expected within 2 months)

Business Segment Updates

GGBS Business

  • Affected by RMC closures in West, aggregate availability issues in South, and OPC/slag mix cost dynamics
  • Received approvals for 29 large infra projects in Q1
  • Expect better performance in Q2 despite monsoon season
  • Guidance: High single-digit growth for FY27
  • Geographic mix: 60% South, 40% West

RMC Business

  • Current capacity: 15 plants
  • Plan to add 35 more plants
  • Q1 Revenue: ₹180 crores
  • FY27 Revenue target: North of ₹1,000 crores (including captive operations)
  • Operations started in North region with 2 units
  • Business divided into commercial, dedicated, and captive (for JSW group use)

Management Guidance and Outlook

Volume Guidance

  • Overall company: High teens growth including North operations
  • Cement: High teens to 25-30% growth including North
  • GGBS: High single-digit growth for FY27

Cost Optimization

  • Increasing share of domestic fuel to optimize costs
  • Expect fuel costs to stabilize in Q2 and decline in Q3
  • Cost savings from WHRS, OLBC, AFR systems expected from Q2
  • Moving from imported coal to lignite

Financial Targets

  • Net debt to EBITDA: Maintain below 3.0x
  • North operations: Expect profitability by year-end
  • RMC business: Scaling up aggressively but margins difficult to quantify initially

Other Significant Disclosures

JSW One Investment

  • Other income includes ₹55 crores from JSW One deconsolidation
  • Represents share of net worth as JSW One plans listing in FY27
  • Previous losses had been written down over different quarters

Regional Performance

  • Clinker utilization: 61% overall including Nagaur
  • Ex-Nagaur clinker utilization: 87%
  • Strong performance in East and West regions, headwinds in South

Market Strategy

  • North pricing strategy: Reducing discount structures and price gap in A category band
  • Marketing spend guidance: ₹130 crores for FY27 (includes technical spends)
  • Plans to expand into Punjab, Western UP, and Central UP