JK Lakshmi Cement Limited conducted its Q4 and FY26 Earnings Conference Call on May 21, 2026, organized by PhillipCapital (India) Private Limited. The call featured Mr. Arun Shukla, President and Director, and Mr. Sudhir Bidkar, Executive Director, Corporate Affairs and CFO, who provided insights into the company's performance and strategic direction.

Industry Overview and Demand Trends

Management noted that pan-India cement demand grew by approximately 7% during FY26, reaching an estimated 480 million tons, an improvement over the 5% year-on-year growth recorded in FY25. Q4 FY26 demand growth was estimated at approximately 6% to 6.5%, with volumes up approximately 17% quarter-on-quarter. Demand remained strong from December 2025 through February 2026, growing at 8% to 10%, but moderated to approximately 5% in March due to weak sentiment amid the Middle East conflict.

On the supply side, the highest-ever annual capacity addition of 64 million tons was recorded, bringing national effective installed capacity to 712 million tons as of March 2026. Pan-India capacity utilization was estimated at approximately 69%, marginally lower than the previous year. Cement prices witnessed partial recovery, particularly in the non-trade segment during Q4 FY26, though substantial capacity additions and intense competition restricted meaningful price hikes.

Key Operational and Financial Data Points

Management shared several operational metrics during the call:

Cost Pressures and Mitigation

Management flagged significant cost headwinds, with pet coke prices rising approximately 40% quarter-on-quarter to approximately $160 per ton and global coal prices up approximately 30% quarter-on-quarter. Energy costs are expected to rise by approximately ₹300 per ton and packaging costs by approximately ₹80 to ₹100 per ton. For Q1 FY27, management guided for a cost inflation impact of approximately ₹120 to ₹130 per ton, with the full ₹400 per ton impact (energy plus packaging) expected to be felt around Q2 FY27. Additionally, a recent increase of approximately ₹4 per litre in petrol and diesel prices is expected to add approximately ₹15 to ₹16 per ton to logistics costs.

To mitigate these pressures, the company is adjusting its fuel mix in Northern plants by altering the proportion of pet coke versus coal, scaling up renewable energy usage, improving thermal substitution rates (TSR), and deploying AI/ML capabilities in pyro-process and grinding units to improve efficiency.

Capex Plans and Expansion Timeline

Management outlined an ambitious capital expenditure roadmap for the coming years:

The Durg expansion, including grinding units, is expected to be commissioned by the end of FY28. The Northeast project (clinker and grinding) is targeted for FY29, followed by the Kutch project by FY30. The Nagaur project faces delays due to land acquisition issues and pending Supreme Court decisions related to the Aravalli region. Management reaffirmed confidence in achieving its 30 million ton capacity target by 2030, with approximately 9 million tons of capacity to be added over FY27 to FY30 after the Durg project.

NECEM Acquisition and Northeast Strategy

Regarding the NECEM acquisition in the Northeast, management confirmed that the transaction was consummated at a total consideration of approximately ₹19 crores, along with the takeover of certain past liabilities. Past liabilities of approximately ₹12.50 crores were settled in March. Of the ₹19 crores consideration, approximately ₹1.50 crores has been paid towards share acquisition, a non-compete fee of approximately ₹10 crores is payable upon full consummation, and approximately ₹7.50 crores is to be inducted as capital, of which approximately ₹3.50 crores has been done. Management expressed confidence that the transaction will be completed in the current quarter.

On the Assam integrated plant, management clarified that while the original MDO contract was cancelled, two out of three mines were secured through the auction route, with combined reserves of approximately 250 million tons. The Northeast foray will proceed based on these two mines after the East expansion.

Profitability Outlook and Strategic Priorities

Management acknowledged that the EBITDA per ton target of ₹1,000 remains the anchor, though the company exited FY26 at approximately ₹730 per ton on a quarterly basis. Management expressed confidence that the gap with industry leaders will narrow by at least ₹50 to ₹75 in FY27. Key levers include improving the blended cement ratio from 62% towards 65%, ramping up premium products such as Green+ and LC3 (Lime Calcined Clay Cement), optimizing trade mix, and expanding renewable energy usage. On non-cement revenues, management noted that the ready-mix concrete segment has grown below plan due to a deliberate focus on higher-margin adjacent building material products such as tile adhesives and plastering solutions. The company is also piloting the leveraging of its brand strength in TMT steel rods through a tie-up with manufacturers, though this remains at a nascent stage.

JK Lakshmi Cement witnessed a notable block trade on the National Stock Exchange (NSE), with approximately 7,52,435 shares changing hands at a price of ₹620.00 per share. The total value of the transaction amounted to ₹46.65 crores, signalling significant institutional-level trading activity in the stock.

Block Trade Details

The following table summarises the key parameters of the block trade recorded on the NSE:

Block trades are typically executed by large institutional investors and are carried out outside the regular order book to minimise market impact. A transaction of this size in JK Lakshmi Cement underscores the level of institutional interest in the company's shares on the NSE.