JSW Cement reported a 21.6% rise in revenue to ₹1,896.4 crore in Q1FY27, driven by a 15.0% increase in total sales volume to 3.81 million MT. Despite the topline growth, operating EBITDA declined 7.5% YoY to ₹298.6 crore due to higher power and fuel costs.

Financial performance

The company's profit after tax (PAT) improved significantly to ₹153.4 crore in Q1FY27, compared to a loss of ₹1,366.4 crore in the corresponding period last year, which included exceptional items. Adjusted PAT rose to ₹153.4 crore from ₹100.0 crore in Q1FY26.

Volume and realisation trends

Total sales volume increased by 15.0% YoY to 3.81 million MT. Cement volume sold grew sharply by 26.5% YoY to 2.34 million MT, while GGBS volume saw a modest rise of 2.6% to 1.33 million MT. Cement realisation increased by 1.2% YoY to ₹4,951/MT, and GGBS realisation rose 2.5% to ₹3,807/MT.

Cost dynamics

Combined raw material, power, and fuel costs per tonne rose 15.0% YoY to ₹2,125 from ₹1,847. This increase was primarily driven by higher fuel costs, with average fuel consumption cost rising to ₹1.80/MCal from ₹1.55/MCal in Q1FY26. Logistics costs per tonne decreased slightly by 0.6% YoY to ₹1,091.

Wind power capacity expansion

Alongside its financial performance, JSW Cement continued to expand its renewable energy footprint during the quarter. The company added 56 MW of wind power capacity, taking the total renewable power capacity to 112 MW. This includes 32 MW installed at the Dolvi unit and 24 MW at the Vijayanagar unit.

What the Numbers Show

While revenue growth was robust at 21.6%, the operating EBITDA margin contracted significantly from 20.7% to 15.7%. The divergence highlights the impact of rising input costs, particularly fuel, which eroded margins despite volume-led top-line expansion. Excluding North operations, however, operating EBITDA remained resilient at ₹336 crore, indicating strong performance in established regions.

JSW Cement received a show cause notice on August 25, 2026, from the Haldia CGST & CX Commissionerate alleging excess input tax credit (ITC) of ₹13,90,55,461 during FY21.

The Joint Commissioner issued the notice under Section 74 of the CGST Act 2017, citing discrepancies identified through DGARM analysis and reconciliation of GSTR-3B, GSTR-9, and GSTR-2A data. The department contends the credit lacks support from supplier-reported records.

Notice Details

The notice proposes a total GST demand of ₹13,90,55,461, broken down as follows:

The department also proposes applicable interest and equivalent penalty under Sections 16(2), Rule 36(4), Sections 39, 41, and 155 of the CGST Act. The allegations include suppression of facts and willful misstatement.

Company Response

JSW Cement stated that the difference arose due to import IGST being reported under the wrong column in GSTR-3B. The department rejected this defense due to lack of invoice-wise correlation and errors in the submitted reconciliation.

The company is in the process of filing a reply to the notice. It disclosed that while the financial impact is limited to the proposed demand, penalty, and interest, there is no material impact on the company.