27-Oct-2026 14:22:14
JK CEMENT Q2 CONCALL : MANAGEMENT MAINTAINS 23 MT+ FY27 VOLUME GUIDANCE, TARGETS 50 MTPA CAPACITY BY FY30 & EXPECTS FUEL COST PRESSURE IN H2
• MANAGEMENT MAINTAINS FY27 GREY CEMENT VOLUME GUIDANCE OF OVER 23 MILLION TONNES, WITH POTENTIAL TO APPROACH 24 MT UNDER FAVOURABLE CONDITIONS • MANAGEMENT REITERATES TARGET OF ACHIEVING 50 MTPA CEMENT CAPACITY BY FY30, SUPPORTED BY GREENFIELD & BROWNFIELD EXPANSIONS • MANAGEMENT EXPECTS FUEL COST PRESSURE OF APPROXIMATELY ₹80–100 PER TONNE IN EACH OF Q3 & Q4 FY27 AS HIGHER COAL & PETCOKE PRICES FLOW THROUGH • MANAGEMENT MAINTAINS FY27 CAPEX GUIDANCE OF ₹3,500 CR, FOLLOWED BY APPROXIMATELY ₹2,500 CR ANNUALLY DURING FY28–FY30 • Q2 CONSOLIDATED NET SALES UP 21% YOY TO ₹3,561 CR, WHILE STANDALONE NET SALES INCREASED 28% TO ₹3,516 CR • Q2 STANDALONE EBITDA UP 13.6% YOY TO ₹500 CR, BUT DOWN 21.8% QOQ FROM ₹639 CR • H1 GREY CEMENT VOLUMES SURGED 19.38% YOY TO 11.3 MT, SUPPORTED BY RECENT CENTRAL INDIA CAPACITY EXPANSION & MARKET-SHARE GAINS • MANAGEMENT REPORTED AN AVERAGE CEMENT PRICE INCREASE OF APPROXIMATELY ₹20 PER BAG SINCE MID-SEPTEMBER, WITH GREATER BENEFITS EXPECTED IN Q3 IF PRICES SUSTAIN • MANAGEMENT INDICATES AN ADDITIONAL ₹10–15 PER BAG PRICE INCREASE IS REQUIRED TO FULLY OFFSET RISING FUEL & OTHER INPUT COSTS • JAISALMER INTEGRATED PLANT & BIKANER GRINDING UNIT ARE TARGETED FOR COMMISSIONING IN H1 FY28, WHILE BATHINDA GRINDING UNIT IS TARGETED BY SEPTEMBER 2027 • COMPANY PLANS APPROXIMATELY 11 MTPA OF ADDITIONAL BROWNFIELD CAPACITY ACROSS PANNA & MUDDAPUR AS PART OF ITS FY30 EXPANSION ROADMAP • MANAGEMENT MAINTAINS FY27 PAINT REVENUE GUIDANCE OF ₹500–550 CR & TARGETS POSITIVE EBITDA, WITH FY28 EBITDA MARGIN EXPECTED AROUND 3–5% • COMPANY APPROVED ₹130 CR INVESTMENT FOR A NEW 75,000 KL PAINT PLANT, WHILE ITS RMC NETWORK IS TARGETED TO EXPAND FROM 23 TO 50 PLANTS BY MARCH 2027 • MANAGEMENT EXPECTS NET DEBT TO PEAK NEAR ₹6,000 CR, WITH NET DEBT/EBITDA AROUND 2.25–2.35X, BEFORE TARGETING A REDUCTION BELOW 1.5X OVER THE LONGER TERM • MANAGEMENT REMAINS POSITIVE ON VOLUME GROWTH & CAPACITY EXPANSION, BUT FUEL COST INFLATION, INSUFFICIENT PRICE HIKES, RISING DEBT & FUJAIRAH EXPORT RESTRICTIONS REMAIN KEY RISKS
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