Quick readJK Lakshmi Cement Limited (JKLC), reported a net profit of ₹20.88 crore for the second quarter of FY2026-27 (Q2 FY27), compared with ₹82.33 crore in the corresponding quarter last year, marking a decline of 74.6%.
Despite the sharp fall in profitability, the cement manufacturer recorded growth in sales volume and revenue during July–September 2026. Net sales increased 5.6% year-on-year to ₹1,616.92 crore, against ₹1,531.77 crore in Q2 FY26. Sales volume rose 4.9% to 29.83 lakh tonnes from 28.43 lakh tonnes.
Operating performance remained under pressure, with PBIDT declining to ₹164.49 crore from ₹232.86 crore, while profit before tax (PBT) fell to ₹29.02 crore from ₹104.97 crore.
For the first half of FY27, JK Lakshmi Cement registered net sales of ₹3,521.70 crore, up 7.6% from ₹3,272.70 crore in the corresponding period last year. Sales volume increased to 65.81 lakh tonnes from 61.69 lakh tonnes. However, PBIDT declined to ₹438.26 crore from ₹568.35 crore, while net profit fell to ₹127.65 crore against ₹234 crore in H1 FY26.
The company’s net debt-to-EBITDA ratio increased to 2.31 times from 1.25 times, while the net debt-to-equity ratio rose to 0.51 from 0.38.
JK Lakshmi Cement is investing in capacity expansion and logistics infrastructure at its Durg Cement Plant. The company is developing a railway siding at an estimated cost of ₹325 crore, funded through ₹225 crore in debt and the balance through internal accruals. The first phase of the project has been completed.
Additionally, the company is setting up a new clinkerisation line with a capacity of 2.30 million tonnes per annum (MTPA), along with three grinding units having a combined cement capacity of 4.6 MTPA. The expansion is estimated to cost ₹3,000 crore and will be funded through a mix of debt and internal accruals. Completion is expected by March 2028.
On the sustainability front, the company is implementing a phased project at its Sirohi Cement Plant to increase its Thermal Substitution Rate (TSR) from 4% to 16%. Renewable and green power accounted for 48% of its overall power mix during Q2 FY27.
The company also received several recognitions for its safety and sustainability initiatives. Its Jhajjar Unit received the British Safety Council’s International Safety Award 2026 in the Distinction Category, while the Surat Unit secured the Merit Category. The Durg Unit was recognised for Significant Achievement in CSR at the 20th CII-ITC Sustainability Awards 2025. JK Lakshmi Cement also received the Excellence in Livelihood and Economic Development Award at the CSR & Sustainability Connect Summit 2026.
Looking ahead, the company expects cement demand to improve during the second half of FY27, supported by the onset of the peak construction season. However, elevated petcoke prices and geopolitical uncertainties are likely to keep fuel, freight and packaging costs under pressure.
Although cement manufacturers are expected to pursue price increases, intense competition could limit their ability to pass on higher costs. Consequently, margins may remain under pressure, with recovery depending on improved price realisations, moderation in input costs and operational efficiencies.
