JSW Cement has received a show cause notice from the Joint Commissioner of State Tax, CT & GST Circle, Jajpur, proposing a total demand of ₹55.98 crore. The notice, dated August 29, 2026, stems from a GST audit for FY23 and alleges short payment of tax and irregular availment of input tax credit.

The company disclosed the development under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. It stated that the matter involves interpretation, reconciliation, and documentary substantiation issues.

Breakdown of the Demand

The proposed aggregate demand comprises tax, interest, and penalty components. The allegations relate to contraventions of Sections 16(1), 16(2), 17, and 41 of the CGST Act, 2017, read with Rules 36 and 42 of the CGST Rules, 2017.

Note: Figures are aggregated from the source disclosure.

Company Response

JSW Cement indicated that it has appropriate explanations and supporting records to contest the allegations in appellate proceedings. The company is currently in the process of filing a reply to the notice.

In its regulatory filing, JSW Cement stated that while the financial impact is limited to the proposed tax, penalty, and interest, there is no material impact on the company’s overall financial position.

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.