JK Lakshmi Cement (500380) Q2 25/26 earnings summary

Executive summary

• Cement capacity stands at 18 million tons after Surat Grinding Unit commissioning, with a target of 30 million tons by FY 2030 through brownfield and greenfield expansions, including Durg, Nagaur, Kutch, and Assam projects.

• Quarterly sales volume reached 28.43 lakh tons in Q2 FY'26, up 15% year-over-year, with revenue at ₹1,532 crore, a 24% increase year-over-year.

• EBITDA for Q2 FY'26 was ₹208 crore, up 134% year-over-year, and PAT was ₹82 crore, a turnaround from a loss in Q2 FY'25.

• Focus on premium product mix, supply chain efficiency, and technology adoption to drive performance and cost savings.

• The Composite Scheme of Amalgamation became effective from July 31, 2025, increasing equity share capital and restating prior period results.

Financial highlights

• Net sales for H1 FY'26 were ₹3,273 crore, up 17% year-over-year, with EBITDA at ₹568 crore, a 69% increase, and PAT at ₹234 crore, up 577% year-over-year.

• Non-cement revenue for the quarter was INR 153 crore, with RMC at INR 72 crore and AAC at INR 52 crore.

• CapEx in H1 FY 2026 was about INR 250 crore; full-year guidance is INR 1,000–1,200 crore, with INR 1,300–1,500 crore per annum for the next two years.

• EPS for H1 FY'26 was ₹18.85, compared to ₹2.79 in H1 FY'25.

• Standalone EBITDA for Q2FY26 was Rs. 232.86 crores, more than double the Rs. 100.56 crores in Q2FY25.

Outlook and guidance

• CapEx for Durg brownfield expansion is INR 3,000 crore, with only INR 50 crore spent till September; major outlays expected over the next two years.

• Greenfield projects' CapEx not finalized but expected to be around $100/ton, with major spending in FY 2029–2030.

• Company targets at least INR 120 per ton cost savings over 18–24 months through efficiency and premiumization.

• Cement sector outlook for FY26 is positive, with volume growth projected at 6% due to infrastructure and housing demand.

• Efforts ongoing to reach INR 1,000 EBITDA per ton, aiming to be among top industry performers.