JSW Cement Limited Q2 & H1 FY27 Results Conference Call Transcript

Key Operational Highlights

  • Total volume increased 26% year-on-year to 3.93 million tons in Q2 FY27
  • Cement volumes reached 2.29 million metric tons, up 40% YoY
  • GGBS volumes grew 7% YoY
  • Cement realization was INR4,781 per ton (up 3% YoY, down 3% QoQ)
  • GGBS realization was INR3,749 per ton
  • Trade mix remained stable at 52%
  • Clinker-to-cement factor increased to 58%
  • Lead distance increased by 9 kilometers to 294 kilometers
  • North plant utilization reached 75% during the quarter
  • Achieved EBITDA breakeven at Nagaur plant in Q2

Capacity Expansion Updates

  • Commissioned waste heat recovery system and alternate fuel rehandling co-processing system at Nagaur Integrated Unit in Q2
  • Commissioned additional 1 MTPA grinding capacity at Nagaur in October 2026
  • Commissioned overland belt conveyor for transporting limestone from crusher to plant
  • Added 36 megawatt of wind capacity at Nandyal and Vijayanagar in Q2
  • Green power share increased to 41% in Q2

Financial Performance (Consolidated)

  • Revenue: INR1,912 crores (up 33% YoY, up 0.8% QoQ)
  • Operating EBITDA: INR278 crores (up 4% YoY)
  • Operating EBITDA per ton: INR708
  • Total EBITDA (including other income): INR295 crores
  • PBT: INR101 crores (including ~INR20 crores positive contribution from JV)
  • PAT: ~INR77 crores

Regional Performance

  • Ex-North operations: Revenue grew 14% YoY, operating EBITDA increased 3% YoY to INR275 crores (INR821 per ton)
  • North operations: Achieved slight positive EBITDA contribution (~INR3 crores profit) in Q2

Cost Structure Analysis

  • Blended fuel costs increased from INR1.80 per MCal in Q1 to INR1.84 per MCal in Q2
  • Expected fuel cost increase to INR2.10 per MCal in Q3 (approximately INR90/ton cement cost increase)
  • Logistic costs stable QoQ
  • Employee and other expenses per ton stable QoQ
  • Employee cost run rate: ~INR100 crores per quarter

Balance Sheet and Capex

  • Net debt: INR4,287 crores at end-September 2026
  • Net debt to EBITDA: 3.2x
  • Average cost of debt: 7.67% for the quarter
  • Quarterly capex: INR483 crores (Q2)
  • Half-year capex: INR820 crores (H1 FY27 cash outgo)

Price Increase Details (October 2026)

  • Non-trade prices: South (INR15-20/bag), East (INR25-30/bag), West (INR10/bag), North (INR20/bag)
  • Trade prices: INR10-15/bag increase only in East region; other regions yet to see increases

Forward Guidance and Expectations

  • North plant EBITDA expected to reach INR650-700/ton in Q4 FY27
  • North plant cost reduction expected: INR550-600/ton from operational improvements
  • GGBS volume growth guidance: High-single digits for FY27
  • Cement volume growth guidance: High-teens for FY27
  • Net debt-to-EBITDA target: Below 3x in coming years (currently 3.2x)

Expansion Timeline

  • Nagaur 2.5 MTPA: Q4 FY28 (expected)
  • Fujairah 1.7 MTPA: Q1 FY28 (May-June 2027 expected)
  • Dolvi 2 MTPA: 20-21 months from January 2027 (FY29 expected)
  • Total remaining capex for 43.5 MTPA capacity: ~INR7,500 crores

Other Business Updates

  • RMC revenue: ~INR170 crores in Q2 FY27 (minimal margins during setup phase)
  • North region trade mix: Currently 53%, targeting 60% by year-end
  • Rajasthan incentives: Awaiting entitlement certificate for INR650 crores incentive over 10 years

Management Participants

  • Mr. Nilesh Narwekar – Chief Executive Officer
  • Mr. Narinder Singh Kahlon – Director Finance and Commercial and Chief Financial Officer
  • Mr. Hitendra Jariwala – Chief Marketing Officer
  • Mr. Kunal Mukherjee – Head, Investor Relations