JK Lakshmi Cement Limited has received a cancellation notice from Assam Mineral Development Corporation Ltd. (AMDCL) regarding their Mine Developer & Operator (MDO) Agreement for limestone mining operations in Assam. The company disclosed this development through a regulatory filing under Regulation 30 of the SEBI Listing Regulations on 6th February 2026.

Agreement Details and Cancellation

The cancelled MDO Agreement was signed between JK Lakshmi Cement and AMDCL on 28th November 2025. The agreement covered drilling, excavation, transportation, and supply of limestone from the 630-hectare New Umrangso Limestone Mines, comprising 430 hectares and 200 hectares of mining area.

AMDCL had initially declared JK Lakshmi Cement as the "H1 Bidder" through its Letter of Intent dated 4th July 2025. The agreement also included provisions for setting up an integrated green field manufacturing plant for cement and value-added products within Assam territory.

Government Directive and Fresh Auction

The cancellation stems from a directive by the Government of Assam instructing AMDCL to revert the limestone mining blocks back to the state government. These blocks will now be put through a fresh auction process conducted by the Directorate General of Mines (DGM), Assam.

The limestone mines were originally allotted by the Government of Assam to AMDCL, which formed the basis for the MDO selection process. However, the state government's decision to reclaim these blocks has necessitated the cancellation of existing agreements.

Company Response and Financial Implications

JK Lakshmi Cement has announced its intention to challenge the cancellation notice before appropriate authorities. The company has indicated that this development may result in delays to the implementation of its proposed cement project.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30(13) of the SEBI Listing Regulations, which requires listed companies to inform exchanges about communications received from regulatory, statutory, enforcement, or judicial authorities. Company Secretary Amit Chaurasia signed the disclosure, confirming the information provided is true, correct, and complete to the best of the company's knowledge.

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.