JK Lakshmi Cement has made the audio recording of its quarterly earnings conference call publicly available, providing investors with access to management’s discussion on the unaudited financial results for the quarter ended June 30, 2026. The call, which was rescheduled from July 30 to August 6, 2026, took place on Thursday, August 6, at 4:00 PM IST. The company notified the Bombay Stock Exchange and the National Stock Exchange of India Ltd. on August 6, 2026, sharing the link to the recording hosted by PhillipCapital (India) Private Limited.

The earnings call was organized to address investor queries regarding the company’s Q1FY27 performance. Senior management, including President & Director Arun Kumar Shukla and Executive Director (Corporate Affairs) & CFO Sudhir Bidkar, participated in the discussion. Vaibhav Agarwal of PhillipCapital served as the call leader. The proceedings were recorded in compliance with Regulation 30(6) read with Schedule III to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Accessing the Earnings Call Recording

Investors can access the full recording of the conference call using the details provided by the company secretary, Amit Chaurasia. The recording is available online through a dedicated URL provided by PhillipCapital.

Key Participants

The call featured key executives from JK Lakshmi Cement Limited, offering insights into the company’s operational and financial updates for the period.

PhillipCapital (India) Private Limited emphasized its commitment to regulatory guidelines and transparency. The firm noted that all necessary disclosures, including call invite intimation and recording details, have been complied with by the corporate entity. Participants were required to provide legitimate details when joining the session. For further information, stakeholders may contact Sudhir Bidkar.

JK Lakshmi Cement reported a 29.60% year-on-year decline in standalone net profit to ₹106.77 crore for the quarter ended June 30, 2026, as rising input costs pressured margins despite robust volume growth. The cement manufacturer's consolidated net profit fell 28.00% to ₹108.07 crore, reflecting the broader industry challenge of managing fuel and power expenses amidst geopolitical volatility. While sales volume expanded by 8.20% to 35.98 lakh tonnes, the company's EBITDA contracted 18.40% to ₹273.77 crore, with the EBITDA margin narrowing sharply to 13.58% from 19.13% in the year-ago period, signaling that revenue growth was not fully translating into operating profitability.

The Board of Directors, meeting on August 5, 2026, approved the unaudited financial results pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Lodha & Co LLP, the statutory auditors, issued a limited review report on the standalone and consolidated figures. The results were prepared in accordance with Ind AS 34 and reviewed by the Audit Committee before board approval. Comparative figures for the quarter ended June 30, 2025, were reviewed by preceding auditors.

Financial Performance

Revenue from operations increased 9.40% year-on-year to ₹1,904.78 crore on a standalone basis, driven by higher sales volumes. However, total expenses rose 14.20% to ₹1,779.92 crore, outpacing revenue growth. Key cost drivers included a 13.20% increase in power and fuel expenses to ₹428.03 crore and a 21.00% rise in cost of materials consumed to ₹320.05 crore. Employee benefit expenses also climbed 2.70% to ₹127.58 crore.

On a consolidated basis, net profit attributable to owners of the parent stood at ₹108.02 crore, compared to ₹150.17 crore in Q1FY26. Other income declined significantly to ₹15.02 crore from ₹24.29 crore in the prior year, further impacting the bottom line. Basic earnings per share were ₹8.60, down from ₹12.22 in the corresponding period last year.

Legal Update: Agrani Cement Dispute

The company has filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996, before the Hon'ble High Court of Delhi to recover ₹130 crore paid to Agrani Cement Private Limited (Trivikram Consortium). The dispute stems from the cancellation of a Mining Development and Operation (MDO) contract by Assam Mineral Development Corporation Limited (AMDCL) due to non-compliance by the consortium. During the year ended March 31, 2026, JK Lakshmi Cement derecognized the ₹325 crore investment as an exceptional item and recognized the ₹130 crore paid as claims recoverable. Management expressed confidence in recovering the amount, with the matter listed for hearing on November 5, 2026.

What the Numbers Show

The divergence between volume growth and profitability highlights the sensitivity of cement margins to input cost inflation. While JK Lakshmi Cement successfully grew its market share with an 8.20% volume increase, the 18.40% drop in EBITDA and the sharp contraction in EBITDA margin from 19.13% to 13.58% indicate that pricing power has not fully offset the rise in power, fuel, and material costs. The net debt-to-EBITDA ratio improved slightly to 1.38 times from 0.99 times in the previous year, though this reflects the lower EBITDA base more than a reduction in debt. Management noted that fuel cost uncertainty remains a key concern, with geopolitical tensions influencing crude oil and pet coke prices.

Strategic Initiatives and Outlook

The company is investing ₹3,000 crore in capacity expansion at its Durg plant, including a new clinkerization line of 2.30 million tonnes per annum and grinding units totaling 4.60 million tonnes per annum, expected to be completed by March 2028. Additionally, a railway siding project costing ₹325 crore is underway at Durg, funded through debt and internal accruals. In sustainability efforts, renewable power constituted 49% of the company's power mix in the quarter, and a project to enhance thermal substation reliability (TSR) from 4% to 16% is being implemented at the Sirohi plant. Management remains cautiously optimistic, citing sustained infrastructure spending as a demand driver while focusing on internal efficiencies to mitigate cost pressures.