JK Lakshmi Cement (500380) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw sales volume grow to 32.81 lakh tons, up 8% year-over-year and 15% quarter-over-quarter, but net profit declined 29% sequentially to Rs. 58.12 crores due to lower realizations and a reduced share of premium products.

• Revenue increased 6% year-over-year and 4% sequentially to Rs. 1,588 crore, with nine-month PAT surging 159% year-over-year to Rs. 292.12 crores.

• Trade sales share dropped from 53% to 49% quarter-on-quarter, attributed to increased non-trade demand and market disruptions post-GST reduction and labor shortages.

• The Composite Scheme of Amalgamation, including three subsidiaries, became effective from July 31, 2025, with a retrospective appointed date of April 1, 2024.

• Management expects trade share and realizations to recover in Q4, with both trade and non-trade prices showing improvement since December.

Segment performance

• Non-cement revenue for the quarter was INR 147 crore, with Ready Mix Concrete (RMC) contributing INR 67 crore and AAC blocks INR 56 crore, both at lower EBITDA margins (RMC at 3%-5%, AAC at 4%).

• Clinker sales for Q3 were 1.51 lakh tons, with clinker utilization at 90%.

• Blended cement share remained stable at 62% in Q3 FY26, with efforts to increase blended cement in institutional sales.

• Premium products comprised 22% of trade sales, down from 26% year-over-year.

• The company operates in a single segment: Cementitious Materials.

Financial highlights

• Realizations declined by about 9%-10% quarter-on-quarter, mainly due to a sharp drop in non-trade prices and higher non-trade sales mix; sales realization per ton dropped 2% year-over-year and 9% sequentially to Rs. 4,430.

• Standalone EBITDA for Q3 FY26 was Rs. 235.13 crores, up from Rs. 212.80 crores in Q3 FY25; EBITDA margin for non-cement business is 4%.

• EPS for Q3 FY26 was Rs. 4.68, down 29% sequentially and 26% year-over-year.

• Employee costs reduced sequentially due to productivity improvements, with future costs expected to stabilize.

• Input costs, including power, fell sequentially (power cost down from INR 5.52 to INR 5.37/unit), and freight costs dropped due to lower lead distances and higher ex-factory sales.