JK Lakshmi Cement (500380) Q1 26/27 earnings summary

Executive summary

• Cement demand and sales volume grew 8% year-over-year, with Q1 FY'27 sales at 38.96 lakh tons and revenue rising to ₹1,905 crore, but profitability declined as PAT fell 30% year-over-year to ₹106.77 crore.

• Realization improved 9% sequentially, driven by higher non-trade prices, geo-mix optimization, and reduced lead distance by 20 km.

• Sustainability focus continued, with renewable power comprising 49% of the power mix.

• Non-cement revenue for the quarter was INR 185 crore, with a projected full-year figure of INR 800+ crore.

Financial highlights

• Standalone EBITDA for Q1FY27 was Rs. 273.77 crores, down from Rs. 335.49 crores in Q1FY26, and EBITDA per ton declined 23% year-over-year to ₹719.

• Fuel cost per kilocalorie increased from INR 1.54 to INR 1.65 sequentially, with further increases expected in Q2.

• Packing cost rose from INR 134 crore to INR 145 crore, impacting per-bag cost by INR 3.5-4.

• Net sales reached ₹1,905 crore, up 9% year-over-year and flat quarter-over-quarter.

• EPS for the quarter was Rs. 8.60, down from Rs. 12.22 in Q1FY26.

Outlook and guidance

• CapEx guidance: INR 1,500 crore for FY 2027, INR 2,000 crore for FY 2028, and INR 1,500 crore for FY 2029, excluding land acquisition for Kutch and Nagaur.

• Installed and operational capacity expected to reach 18 million tons by year-end, with a target of 30 million tons by FY 2030.

• Demand is expected to remain strong, supported by infrastructure spending and institutional projects.

• Net debt to EBITDA ratio to be maintained below 2.5x-2.75x.