28-Oct-2026 15:24:24
JSW CEMENT Q2 CONCALL: REVENUE UP 33% YOY, VOLUMES SURGE 26%, NORTH INDIA TURNS EBITDA-POSITIVE, CEMENT PRICES RECOVER & MAJOR CAPACITY EXPANSION UNDERWAY
• MANAGEMENT GUIDES FOR HIGH-TEENS CEMENT VOLUME GROWTH IN FY27, SUPPORTED BY STRONG DEMAND IN EAST & SOUTH INDIA, NORTH INDIA CAPACITY RAMP-UP & IMPROVING UTILISATION • MANAGEMENT EXPECTS HIGH-SINGLE-DIGIT GGBS VOLUME GROWTH IN FY27, WITH SIMILAR GROWTH LIKELY IN FY28 UNTIL ADDITIONAL SLAG AVAILABILITY IMPROVES • MANAGEMENT TARGETS NORTH INDIA EBITDA OF APPROXIMATELY ₹650–700/TONNE BY Q4 FY27, SUPPORTED BY HIGHER UTILISATION, IMPROVED TRADE MIX & COST-SAVING INITIATIVES • MANAGEMENT EXPECTS CLINKER COST SAVINGS OF ₹550–600/TONNE AT NAGAUR FOLLOWING COMMISSIONING OF WASTE HEAT RECOVERY, ALTERNATIVE FUEL SYSTEMS & OVERLAND BELT CONVEYOR • MANAGEMENT TARGETS GREEN ENERGY SHARE OF APPROXIMATELY 50–55% VS 41% IN Q2, HELPING OFFSET RISING FUEL COSTS & SUPPORT LONG-TERM MARGIN IMPROVEMENT • MANAGEMENT PLANS FY27 CAPEX OF APPROXIMATELY ₹2,300 CR & FY28 CAPEX OF ₹2,000 CR, WITH REMAINING INVESTMENT OF AROUND ₹7,500 CR REQUIRED TO REACH 43.5 MTPA CAPACITY • Q2 REVENUE GREW 33% YOY TO ₹1,912 CR, WHILE OPERATING EBITDA INCREASED 4% TO ₹278 CR & NET PROFIT STOOD AT ₹77 CR • Q2 OPERATING EBITDA/TONNE STOOD AT ₹708, WHILE TOTAL EBITDA INCLUDING OTHER INCOME REACHED ₹295 CR & REVENUE GREW 0.8% QOQ • TOTAL SALES VOLUMES SURGED 26% YOY TO 3.93 MMT, WITH CEMENT VOLUMES JUMPING APPROXIMATELY 40% TO 2.29 MMT & GGBS VOLUMES GROWING 7% • CEMENT REALISATIONS INCREASED 3% YOY TO ₹4,781/TONNE BUT DECLINED 3% QOQ DUE TO GEOGRAPHIC MIX, WHILE GGBS REALISATIONS STOOD AT ₹3,749/TONNE • EAST INDIA CEMENT VOLUMES GREW APPROXIMATELY 20% YOY, SOUTH INDIA GREW 13%, WHILE CEMENT VOLUME GROWTH EXCLUDING NORTH INDIA STOOD AT APPROXIMATELY 13% • NORTH INDIA NAGAUR PLANT ACHIEVED APPROXIMATELY 75% UTILISATION & TURNED EBITDA-POSITIVE AT ₹3 CR IN Q2, MARKING AN IMPORTANT OPERATIONAL TURNAROUND • MANAGEMENT EXPECTS NORTH INDIA TRADE SALES MIX TO IMPROVE FROM APPROXIMATELY 53% TO NEARLY 60% BY FY27-END, SUPPORTING BETTER REALISATIONS & PROFITABILITY • OCTOBER NON-TRADE CEMENT PRICE INCREASES REACHED ₹25–30/BAG IN EAST INDIA, APPROXIMATELY ₹20 IN NORTH, ₹15–20 IN SOUTH & ₹10 IN WEST, WHILE EASTERN TRADE PRICES ROSE ₹10–15/BAG • MANAGEMENT EXPECTS BLENDED FUEL COST TO INCREASE TO APPROXIMATELY ₹2.10/MCAL IN Q3 VS ₹1.84 IN Q2, POTENTIALLY ADDING AROUND ₹90/TONNE TO CEMENT PRODUCTION COSTS • GREEN POWER SHARE REACHED 41% IN Q2 FOLLOWING ADDITION OF 36 MW WIND CAPACITY, WHILE DOMESTIC COAL, ALTERNATIVE FUELS & CEMENT PRICE HIKES ARE EXPECTED TO HELP PROTECT MARGINS • NAGAUR COMMISSIONED AN ADDITIONAL 1 MTPA GRINDING CAPACITY IN OCTOBER 2026, WITH FURTHER 2.5 MTPA EXPANSION TARGETED FOR Q4 FY28 • MANAGEMENT TARGETS FUJAIRAH EXPANSION BY Q1 FY28, INITIAL 2 MTPA DOLVI EXPANSION AROUND Q2–Q3 FY29 & VIJAYANAGAR PROJECT COMPLETION APPROXIMATELY 18 MONTHS AFTER WORK BEGINS IN DECEMBER 2026 • NET DEBT STOOD AT ₹4,287 CR WITH NET DEBT/EBITDA AT 3.2X, WHILE MANAGEMENT AIMS TO REDUCE LEVERAGE BELOW 3X OVER THE COMING YEARS DESPITE SUBSTANTIAL EXPANSION SPENDING • RMC BUSINESS REPORTED Q2 REVENUE OF APPROXIMATELY ₹170 CR, ALTHOUGH PROFITABILITY REMAINS LIMITED DURING THE INITIAL SCALE-UP PHASE • MANAGEMENT REMAINS POSITIVE ON CEMENT VOLUME GROWTH, NORTH INDIA PROFITABILITY, GREEN ENERGY SAVINGS & CAPACITY EXPANSION, BUT FUEL INFLATION, CEMENT PRICING PRESSURE, HIGH DEBT & PROJECT EXECUTION RISKS REMAIN KEY CONCERNS
JSW CEMENT LIMITED