This document contains the transcript of JSW Cement Limited's Q4 and FY26 earnings conference call held on 21 May 2026 at 5:15 PM IST. The call was hosted by PhillipCapital India Private Limited and featured management commentary on audited standalone and consolidated financial results for the quarter and year ended 31 March 2026.

Operational Highlights

  • Q4 FY26 total sales volume increased 7% YoY to 3.99 million tons
  • Cement volume sold was 2.35 million tons, increased 12% YoY
  • GGBS volume sold was 1.57 million tons, increased 5.4% YoY (impacted by temporary slag availability issues at Dolvi unit and RMC plant closures in Western region)
  • Cement realization for Q4 FY26 was INR4,673 per ton, increase of 4.8% QoQ
  • GGBS realization for Q4 FY26 was INR3,682 per ton, slight improvement QoQ
  • Trade mix improved to 51% versus 47% in Q3
  • Clinker to cement factor remained at 51% in Q4 FY26
  • Carbon dioxide emission intensity was 268 kgs per ton of cementitious products for FY26

Financial Performance

Q4 FY26 Results:

  • Revenue: INR1,895 crores (11% YoY increase)
  • Operating EBITDA: INR365 crores (46% YoY increase), equating to INR916 per ton
  • Operating EBITDA margin: 19.3% (460 bps improvement YoY)
  • Total EBITDA including other income: INR386 crores (42% YoY increase)
  • PBT: INR219 crores (including positive contribution of INR6 crores from Fujairah JV)
  • PAT: INR362 crores (includes one-time benefit of INR211 crores from reduction in deferred tax liability due to adoption of new tax regime from FY27)
  • RMC revenue: INR184 crores for the quarter

FY26 Full Year Results:

  • Sales volume: 13.96 million tons (11% YoY increase)
  • Cement volume: 9% YoY growth
  • GGBS volume: 12% YoY growth
  • Revenue: INR6,512 crores (12% YoY increase)
  • Operating EBITDA: INR1,240 crores (44% YoY increase), equating to INR888 per ton
  • Total EBITDA including other income: INR1,393 crores
  • Adjusted PAT (excluding non-cash expense on CCPS conversion): INR668 crores
  • RMC revenue: INR574 crores for the year
  • Board recommended dividend of INR0.50 per equity share of face value INR10 each
  • Net debt: INR3,635 crores as of 31 March 2026
  • Capex: INR506 crores maintenance capex + INR1,962 crores expansion capex

Capacity Expansion Updates

  • Integrated plant at Nagaur, Rajasthan (3.3 MTPA clinker + 2.5 MTPA grinding) started commercial operations on 30 March 2026
  • Additional 1 MTPA grinding and waste heat recovery system at Nagaur expected to commission in coming months
  • Board approved additional 2.5 MTPA cement grinding capacity at Nagaur with estimated investment of INR430 crores, expected commissioning by Q4 FY28
  • Total planned capacity: 46 MTPA grinding with 13.04 MTPA clinker
  • Mansa, Punjab project delayed due to environmental clearance issues
  • UAE grinding unit delayed by one month due to war situation, expected commissioning by April 2027 end

Cost Structure and Guidance

  • Blended fuel cost stable at INR1.49 per Kcal
  • Logistics cost increased 6% QoQ due to 16km increase in lead distance
  • FY27 cost savings target: ~INR100 per ton across power cost (INR69-70), logistics (INR36), and premiumization (INR4)
  • Green energy capacity to increase from current 24% to 63%
  • FY27 capex guidance: INR2,300 crores
  • FY28 capex guidance: INR2,200 crores
  • Tax rate guidance: 25% from FY27 under new tax regime

Regional Performance and Outlook

  • North India operations: Targeting 50-60% utilization for full year of 2.5 MTPA grinding capacity
  • Dealer network: 1,000 dealers in Haryana and Rajasthan (25% exclusive, 75% multi-brand)
  • Demand environment soft in April due to inflationary pressures, labor shortage, and elections in key states
  • Management maintains mid-to-high teens volume growth guidance for FY27 (excluding North)

Other Key Disclosures

  • INR23 crores spent on North operations marketing and manpower costs in Q4 (not capitalized)
  • Rupee depreciation impact: INR13.4 crores net in Q4
  • Clinker production: 3.74 million tons at Nandyal and Shiva plants
  • Fujairah JV clinker production: 0.69 million tons in quarter
  • Incentive accrued: INR3.47 crores in the quarter
  • Rajasthan state incentives: INR50 crores capital subsidy + electricity duty waiver
  • Premium product sales share: 52% in Q4