26 - 05 - 2026

JK Cement retains FY27 capex guidance at ₹3,500-4,000 crore

JK Cement has retained its capital expenditure guidance of ₹3,500-4,000 crore for the financial year 2027 (FY27), followed by an estimated investment of ₹1,500-2,000 crore the next fiscal.

Around ₹800-1,000 crore of the financial year 2027 capital expenditure would comprise maintenance and strategic investments such as solar projects, paint business investments and coal block investments, while the balance would be directed toward greenfield expansion.

JK Cement expects domestic grey cement demand to grow by about 6-8 per cent in the financial year 2027, according to a Motilal Oswal report. The company aims to sustain double-digit volume growth by delivering about 2.5 metric tonne (MT) of incremental grey cement volumes during the 12-month period, highlighting that underlying infrastructure demand across the country remains healthy.

It expects at least 2.5 MT incremental sales volumes in the financial year 2027 and indicated that annual incremental volume addition could eventually move closer to 3 MT per annum as future expansions get commissioned. The prominent Indian manufacturer has targeted adding at least 2.5 metric tonne of incremental sales volumes in the current financial year, leveraging newly commissioned production facilities to outpace general market expansion despite mounting cross-border geopolitical challenges and input cost inflation.

However, management cautioned that the prevailing international geopolitical situation could temporarily impact housing demand by putting pressure on business cash flows and slowing consumer sentiment. Elevated fuel, oil, and packaging costs will weigh on margins in the near term. JK Cement remains prudent in its capacity expansion and expects timely completion.

JK Cement expects severe cost pressure in the first quarter of the financial year 2027, with fuel costs rising by about ₹150 per tonne, and potentially increasing toward about ₹200 per tonne, if geopolitical disruptions persist. To insulate profitability against these core variables, the company enacted an initial price hike of about ₹10 per bag for grey cement in May 2026, alongside upward revisions for white cement and wall putty to partly offset the impact.

The producer is also targeting structural efficiency improvements to secure extra cost savings of about ₹50 per tonne during the financial year. These internal savings will be driven primarily by raising the total share of green power to 55 per cent from the current 52 per cent, backed by 80 megawatts of active renewable energy projects.

JK Cement’s net profit fell 8 per cent in fourth quarter of FY26 to ₹331 crore, compared with ₹361 crore recorded during the previous fiscal. During the quarter under review, the company’s revenue was up 8.5 per cent to ₹3,887.5 crore, compared to ₹3,581.2 crore recorded during the year-ago period. 

The Ebitda (earnings before interest, taxes, depreciation and amortisation) was down 10.8% year-on-year to ₹682.7 crore from ₹765 crore in the year-ago period. The firm’s Ebitda margin widened to 17.6% from 21.4%.