JK Lakshmi Cement (500380) Q2 26/27 earnings summary

Executive summary

• Monsoon disruption, planned shutdowns, weak seasonal demand and fuel inflation pressured Q2 profitability; revenue rose 6% YoY to ₹1,616.92 crore, while PAT fell 75% to ₹20.88 crore.

• H2 demand and pricing are expected to improve; expansion continues with leverage discipline, targeting industry-matched volume growth.

Financial highlights

• Q2 FY27 standalone revenue was ₹1,616.92 crore vs ₹1,531.77 crore YoY; EBITDA was ₹164.49 crore vs ₹232.86 crore, PBT ₹29.02 crore vs ₹104.97 crore, and PAT ₹20.88 crore vs ₹82.33 crore.

• Sales volume was 29.83 lakh tonnes, up 5% YoY and down 17% QoQ; H1 volume rose to 65.81 lakh tonnes from 61.69 lakh tonnes.

• Q2 fuel cost rose to ₹1.82 per 1,000 kcal from ₹1.54; blended power cost was ₹6.24/unit versus ₹5.52 in Q1.

• Non-cement revenue was ₹183 crore, including ₹86 crore from RMC and ~₹70 crore from AAC; blended margin was 5%.

Outlook and guidance

• Management expects H2 volume growth to match industry growth of 7%–8%; FY27 cement demand is estimated to grow ~8%.

• October prices rose ~₹10 on average versus Q2; management expects another ~₹10 in November and ₹10–₹15 in December, subject to demand.

• Fuel cost outlook is ~₹2 per 1,000 kcal in Q3 and ₹2.15–₹2.20 in Q4 if current conditions persist; Q4 remains uncertain.

• Management sees EBITDA/ton returning to ₹700+ as pricing momentum continues; premium-product share is expected at 27%–28%, with an effort to reach 30%.