JK Lakshmi Cement (500380) Q4 25/26 earnings summary

Executive summary

• Pan-India cement demand grew 7% in FY 2026, reaching 480 million tons, with Q4 demand up 6–6.5% year-over-year; growth was driven by housing and infrastructure, though March saw moderation due to weak sentiment amid Middle East conflict.

• Achieved 8% year-over-year and 19% quarter-over-quarter sales volume growth in Q4 FY'26, reaching 38.96 lakh tons.

• Revenue remained flat year-over-year but increased 20% sequentially to ₹1,902 crore in Q4 FY'26.

• EBITDA for Q4 FY'26 was ₹286 crore, down 18% year-over-year but up 39% quarter-over-quarter.

• Company remains on track for 30 million tons capacity by 2030, with major expansions in Durg, Assam, Kutch, and Nagaur.

Financial highlights

• Standalone net profit for FY26 was Rs. 430.34 crore, up from Rs. 282.72 crore in FY25.

• Standalone revenue for FY26 reached Rs. 6,762.63 crore, compared to Rs. 6,192.62 crore in FY25.

• EBITDA for FY26 was Rs. 1,127.90 crore, up from Rs. 918.27 crore year-over-year.

• Non-cement revenue for the quarter was INR 169 crore; RMC revenue was INR 82 crore; AAC block revenue was INR 59 crore.

• PAT for Q4 FY'26 was ₹138 crore, a 19% decline year-over-year but a 138% increase sequentially.

Outlook and guidance

• FY 2027–2028 capacity addition estimated at 45–50 million tons for the industry, down from 64 million tons in FY 2026.

• Company expects to grow faster than industry in FY 2027, leveraging headroom at Surat, Udaipur, and Cuttack plants.

• Cement demand growth expected to moderate to 6-7% in FY27 due to geopolitical headwinds, rupee depreciation, and supply chain disruptions.

• Energy costs expected to rise by at least INR 300 per ton, with packaging costs up INR 80–100 per ton; cost inflation of INR 120–150 per ton anticipated in Q1 FY 2027.

• No new capacity to be added in FY 2027; current operational capacity is 18 million tons with 73% utilization.