JK Cement delivered impressive growth in Q4FY26 with grey cement volumes rising 13% year-on-year to 6.16 million tonnes, significantly outpacing the industry's high single-digit growth rate. According to reports from Stock Market News, the company's FY26 grey cement volumes jumped 17% to approximately 21 million tonnes, with volumes positioned for double-digit growth in FY27 against the projected industry demand growth of 6-8%. This strong performance has been primarily driven by the company's expanded footprint in central and eastern India, where management expects competitive intensity to increase with new capacity commissioning, though material impact is unlikely before Q3FY27.
The company's consolidated revenue rose 9% to ₹3,887 crore in Q4FY26, supported by strong volumes despite lower year-on-year blended realizations. As reported by Stock Market News, JK's grey cement capacity currently stands at 32.26 mtpa with a target of 50 mtpa by FY30. The commissioning of a 3 million tonne per annum split grinding unit in Bihar has increased total grey cement capacity to 32.3 million tonnes annually. The company's next expansion phase at units in Jaisalmer, Bikaner and Bhatinda is on track for commissioning in H1FY28, which will enhance geographical presence and growth visibility. Despite disruptions in UAE operations, white cement volumes are expected to grow in the 8-10% range in FY27, similar to FY26 performance.
Despite strong volume growth, consolidated Q4 Ebitda declined 11% year-on-year to ₹682 crore, dragged by high operating expenses in grey cement operations and continued competitive pressure in the white/putty segment. According to Stock Market News, fuel cost inflation remains a key concern with management pencilling in an increase of ₹150-200 per tonne amid geopolitical tensions and volatility in imported fuels. The company has implemented a ₹10 per bag price increase to pass through cost burdens and is making cost-saving efforts. Freight impact of ₹50-60 per tonne is expected for every ₹10-12 per litre increase in diesel prices.
Nuvama Institutional Equities has retained its 'Buy' recommendation on JK Cements and revised the target price to ₹7,034 from ₹7,438 earlier, suggesting upside of nearly 29%. The brokerage noted that the commissioning of the Bihar unit increased total grey cement capacity to 32.3 million tonnes annually. While Nuvama lowered EBITDA estimates for FY27 and FY28 due to higher cost assumptions linked to geopolitical developments, it continued to back the company's longer term operating profile. The brokerage emphasized that JKC's consistent volume growth, efficiency improvement and superior RoEs make it an attractive bet, with management targeting double-digit volume growth in FY27E. Ongoing expansion projects across Rajasthan, Punjab and Jaisalmer are expected to support the next phase of growth.
