JK Cement Ltd. shares gained on Tuesday, June 24, after the company was declared the preferred bidder for the Gilund Limestone Block in Rajasthan. According to an exchange filing, the cement manufacturer participated in an e-auction conducted by the Rajasthan government and emerged as the preferred bidder for the mining lease of the 370.96 hectares limestone block in Chittorgarh district. The company received the communication from the state government on June 23. The lease provides long-term captive access to limestone, the primary raw material for cement, reducing dependence on external suppliers and protecting margins from price fluctuations. This strategic acquisition tightens the supply of available mineral blocks in Rajasthan, making it harder for smaller players to compete while allowing JK Cement to scale its clinker production efficiently in a high-demand zone.
The mining block acquisition represents a tactical masterstroke that secures the raw material lifeline required for JK Cement's next phase of growth in the Rajasthan cluster. As reported by multiple sources, captive limestone is the 'new oil' for the sector, dictating the cost curve for the next decade. The 371-hectare block supports potential brownfield or greenfield expansions in the near future, aligning with the industry-wide shift toward integrated capacity building to offset rising input costs and ensure supply chain resilience. The win signals long-term capacity commitment, likely viewed positively by institutional investors focused on resource longevity, while reinforcing Rajasthan's position as a cement hub and intensifying competition for mining assets. While the impact is indirect, long-term raw material security helps manufacturers stabilize production costs, which can lead to more predictable retail pricing for cement bags over the next few years.
The mining block acquisition supports JK Cement's ambitious growth strategy ahead of industry trends. As reported by CNBC TV18, Anuj Khandelwal, Business Head at JK Cement, said the company expects to deliver double-digit growth in grey cement volumes in FY27, compared with the industry's projected growth of 6-8%. Khandelwal indicated that the company has sufficient capacity headroom to continue gaining market share after outpacing industry growth in the previous financial year. The 371-hectare block supports the company's goal of reaching 30 MTPA capacity and strengthens long-term margin visibility through resource security over a multi-decade horizon. The Indian cement industry is witnessing a wave of consolidation and aggressive mining auctions, with companies like JK Cement, UltraTech, and Adani-owned Ambuja competing for blocks to support the government's infrastructure push.
For the March quarter, JK Cement reported mixed financial results with revenue growth but margin pressure. According to the company's exchange filing, consolidated net profit declined 7.6% to ₹333 crore from ₹360.4 crore a year earlier. However, revenue rose 8.6% year-on-year to ₹3,887.5 crore, supported by higher grey cement volumes and improved realisations. EBITDA declined 10.8% to ₹682.7 crore, while EBITDA margin contracted to 17.6% from 21.4% in the year-ago quarter due to cost pressures. The company has been focusing on capacity expansion in Central India, including the commissioning of grinding units, and maintaining its focus on green energy transition, aiming to increase its renewable energy share to 75% by 2030.
