JSW Cement (JSWCEMENT) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 marked the first quarterly earnings call as a listed company, with unaudited standalone and consolidated results approved by the Board and results shared in advance.

• Achieved total sales volume of 3.31 million MT in Q1 FY26, up 7.8% YoY, with cement volume up 10% and GGBS volume up 5%.

• Revenue from operations rose 8% YoY to INR 1,560 crore, driven by higher volumes and improved cement realization.

• Operating EBITDA reached INR 323 crore, up 39% YoY, marking the highest Q1 EBITDA in company history.

• Adjusted PAT for the quarter was INR 100 crore, excluding a non-cash fair value expense of INR 1,466 crore related to CCPS conversion.

Financial highlights

• EBITDA margin improved to 20.7%, up 4.6 percentage points YoY, with operating EBITDA per ton at INR 974.

• Net debt stood at INR 4,566 crore, with Net Debt/EBITDA at 4.32x-4.34x.

• Logistics cost per ton decreased 5.9% YoY; employee costs per ton (excluding ESOP) fell 24.6% YoY.

• Standalone and consolidated net loss for Q1 FY26 was INR 1,332.34 crore and INR 1,366.41 crore, respectively, mainly due to a one-time exceptional loss from CCPS conversion.

• Cement realization for Q1 was INR 4,894/ton, with GGBS realization at INR 3,715/ton.

Outlook and guidance

• Targeting full-year sales volume above 15.5 million tons, with margin guidance at INR 1,150-1,200 per ton and further cost reductions planned.

• CapEx for FY26 expected at INR 2,000 crore, with a similar outlay planned for FY27.

• Ongoing cost-reduction initiatives aim to achieve INR 400/ton savings over two years, with half already realized.

• Cement demand in India is projected to grow 6.5%-7.5% in FY26, supported by stable GDP growth, declining inflation, and government infrastructure spending.

• Management is confident in recovering a ₹339.87 crore claim related to the West Bengal incentive scheme, pending legal resolution.