According to reports from The Hindu BusinessLine, JK Cement reported consolidated revenue of ₹3,887.5 crore (+8.6% year-on-year) and EBITDA of ₹682.5 crore (-10.8%) for Q4FY26. The company's performance fell short of analyst estimates, which had projected revenue of ₹4,010.4 crore and EBITDA of ₹690.1 crore. The results reflect mixed operational performance amid challenging market conditions.
As reported by The Hindu BusinessLine, the management has outlined an ambitious expansion strategy with capital expenditure guidance of ₹3,000-4,000 crore for FY27E, followed by ₹1,500-2,000 crore in FY28E. This substantial investment reflects the company's continued focus on capacity expansion and operational strengthening. The company expects strong double-digit growth in grey cement volumes for FY27E, indicating robust demand expectations.
According to The Hindu BusinessLine, the company faces significant cost inflation challenges with fuel costs expected to rise by ₹150-200 per tonne. Management indicated that Q1FY27 profitability is likely to remain broadly in line with Q4FY26 levels, but Q2FY27 margins could face pressure if cement price hikes are insufficient to offset diesel cost increases. The company has implemented price increases for white cement and wall putty to offset higher input costs, particularly sharp rises in chemical prices. However, the possibility of passing on any further diesel-led cost inflation remains uncertain.
As reported by The Hindu BusinessLine, the broker maintains a Buy rating on JK Cement while revising the target price downwards to ₹7,000 per share from the current market price of ₹5,311.30. The target price is derived by assigning an EV/CE multiple of 3.5x to FY28E estimates. The broker anticipates EBITDA to expand at a CAGR of 16.8% over FY26-29E, driven by healthy volume growth and realization growth, despite current cost pressures. The management indicated that fuel orders are secured until September, providing some stability in the near term.
