JK Lakshmi Cement Limited announced its unaudited financial results for the third quarter ended December 31, 2025, reporting a net profit of ₹58.12 crores compared to ₹78.33 crores in the corresponding quarter of the previous year. Revenue from operations increased to ₹1,588.40 crores from ₹1,496.83 crores in Q3FY25, representing growth of 6.08%.

Financial Performance Overview

The company's EBITDA grew to ₹235.13 crores from ₹212.80 crores in the corresponding quarter last year, with EBITDA margin improving to 14.81% from 14.21%. For the nine-month period, the company demonstrated strong performance with net profit surging 158.79% to ₹292.12 crores compared to ₹112.91 crores in the corresponding period last year.

Operational Highlights

The company's sales volume for Q3FY26 reached 32.81 lakh tonnes compared to 30.31 lakh tonnes in the corresponding quarter last year, representing an increase of 8.25%. For the nine-month period, sales volume increased to 94.50 lakh tonnes from 85.32 lakh tonnes, showing growth of 10.76%.

Exceptional Items and Corporate Actions

The company reported exceptional items loss of ₹19.09 crores in Q3FY26, primarily related to the implementation of new Labour Codes. The Government of India notified four Labour Codes effective from November 21, 2025, resulting in incremental retiral obligations of ₹19.09 crores. The Composite Scheme of Amalgamation & Arrangement became effective from July 31, 2025, with the appointed date of April 1, 2024.

Expansion and Market Outlook

JK Lakshmi Cement is implementing significant expansion projects, including a railway siding at its Durg Cement Plant costing ₹325 crores. The company is expanding clinker capacity at Durg with an additional clinker line of 2.3 million tonnes per annum and cement grinding units totaling 4.6 million tonnes per annum.

The company maintains its vision of reaching 30 million tonnes cement capacity by 2030, supported by ongoing expansion projects across multiple locations including Prayagraj, Madhubani, and Patratu. The share of renewable power in the company's power mix was 48% for the quarter, reflecting its commitment to sustainability initiatives.

JK Lakshmi Cement Limited , a prominent player in the Indian cement industry, has outlined an ambitious expansion strategy during its Q2 and H1 earnings conference call. The company, which currently operates at an 18 million tons capacity, aims to significantly scale up its operations over the next few years.

Expansion Roadmap

The company's expansion plans are set to unfold in multiple phases:

1. Durg Brownfield Expansion:

   • Estimated cost: Rs. 3,000.00 crores
   • Target capacity: 22.60 million tons by FY28

2. Greenfield Projects:

   • Three new plants planned in Nagaur, Kutch, and Assam
   • Expected to come online in FY29 and FY30
   • Targeted total capacity: 30.00 million tons by FY30

Financial Highlights

While specific financial figures were not provided, the company reported several key operational metrics for Q2:

The company noted an improvement in its premium product proportion, which increased from 23.00% to 26.00% quarter-on-quarter.

Operational Updates

• Surat Grinding Unit: Commissioned in September, contributing to the current 18.00 million tons capacity
• Non-cement Revenue: Reached Rs. 153.00 crores with a 4.00% EBITDA margin
• Geographical Mix: North markets (including Gujarat) accounted for 69.00% of sales

Market Dynamics

JK Lakshmi Cement reported that trade prices remained largely stable across markets, with some pressure observed in non-trade segments. The company expects demand to improve from November onwards, potentially leading to a recovery in non-trade prices.

CAPEX Outlook

The company provided the following CAPEX guidance:

• FY26: Rs. 1,000.00 to 1,200.00 crores
• Next two years: Rs. 1,300.00 to 1,500.00 crores annually

Challenges and Opportunities

While the company is optimistic about its expansion plans, it faces challenges such as pricing pressures in non-trade segments and fluctuations in fuel costs. However, management expressed confidence in their ability to improve performance through various initiatives, including:

1. Enhancing premium product offerings
2. Optimizing distribution costs
3. Improving plant efficiency through technology adoption
4. Increasing the use of renewable power

Conclusion

JK Lakshmi Cement's ambitious expansion plans reflect its confidence in the long-term growth prospects of the Indian cement industry. As the company moves forward with its capacity enhancement strategy, investors and industry observers will be keenly watching how these plans materialize and impact the company's market position in the coming years.