JSW Cement incurs loss of Rs 1,356 cr in Q1 FY26 due to exceptional item

JSW Cement reported a Q1 FY26 loss of Rs 1,356.17 crore due to a one-time CCPS conversion, even as revenue rose 7.77 per cent and operating Ebitda improved 39 per cent YoY

JSW Cement’s loss widened to Rs 1,356.17 crore in the first quarter of the financial year 2026 (Q1 FY26), against Rs 15.12 crore in Q1 FY25, due to a one-off charge related to the conversion of compulsory convertible preference shares (CCPS) into equity shares.

 

On 24 July 2025, before its initial public offering, the company converted 16 crore (160 million) CCPS, with a face value of Rs 100 each, into 23.57 crore (235.7 million) equity shares with a face value of Rs 10 each.

 

As a result, the CCPS liability of Rs 1,897.7 crore as of 31 March 2025 was revalued on 30 June 2025. This led to a non-cash fair value expense of Rs 1,466.4 crore in Q1 FY26. Since the CCPS have now been converted, no further such expenses will arise in future quarters, the company said.

 

Excluding this one-time accounting adjustment, the company’s adjusted profit after tax for Q1 FY26 stood at Rs 100 crore.

 

Revenue from operations in Q1 FY26 was Rs 1,559.82 crore, up 7.77 per cent year-on-year (Y-o-Y), driven by higher sales volume and improved realisations.

 

Total volume sold during the quarter increased 8 per cent Y-o-Y to 3.31 million tonnes. Of this, cement volume was 1.85 million tonnes, up 10 per cent Y-o-Y.

 

The sales volume of ground granulated blast furnace slag (GGBS) was 1.30 million tonnes, up 5 per cent Y-o-Y. GGBS is used as a supplementary cementitious material.

 

During the quarter, the company’s cement realisation improved by 5.7 per cent on a quarter-on-quarter (Q-o-Q) basis, while GGBS realisations remained stable.

 

Operating earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose 39 per cent Y-o-Y to Rs 322.7 crore. Operating Ebitda per tonne was Rs 974 in Q1 FY26 compared with Rs 758 in Q1 FY25.

 

Operating Ebitda margin stood at 20.7 per cent in Q1 FY26 against 16.1 per cent in Q1 FY25. Total Ebitda, including other income, was Rs 344.7 crore in Q1 FY26, up 34 per cent Y-o-Y.

 

The company’s expenses during the quarter stood at Rs 1,417.26 crore, marginally down by about 1 per cent.

 

Net debt as of 30 June 2025, excluding CCPS, was Rs 4,566 crore against Rs 4,204 crore on 31 March 2025, primarily due to additional borrowing for ongoing capital expenditure. In Q1 FY26, the company incurred capex of Rs 456 crore, including maintenance expenditure.

 

The company is working on its approved expansion programme to build a pan-India presence and reach 41.85 million tonnes per annum (mtpa) of grinding capacity along with 13.04 mtpa of clinker capacity.

 

Sequentially, revenue dipped 8.75 per cent. The company had reported a profit of Rs 34.22 crore in Q4 FY25.