JK Lakshmi Cement sees pre-tax earnings improve from Q4 on higher sales

Rising institutional cement prices, improving demand and higher premium product contribution are expected to offset cost pressures, management says

JK Lakshmi Cement expects its pre-tax earnings or EBITDA to improve in the fourth quarter and subsequent periods on the back of rising sales realisation and growing non-trade (B2B) volumes, its President & Director Arun Kumar Shukla said on Monday.

Non-trade (Institutional) prices are firming up, demand remains strong, and costs are inching higher, which together will support better realisations compared to the December quarter.

"So, EBITDA (earnings before interest, tax, depreciation and amortisation) will be better because institutional prices have gone up, demand is better, and cost is also going up. So, I think it is going to be better than Q3 realisation-wise," he said.

 

Cement companies in their Q3 earnings have reported an impact on topline on account of softer cement prices due to GST reduction.

When asked about the fourth quarter, Shukla said, "I see it (Q4/FY'26) good because volume and demand are good. Since cost has gone up, prices are also inching up. So, Q4 is going to be better than Q3," he said.

JK Lakhsmi Cement, which last week declared its results for the December quarter, reported an increase of 6.11 per cent in its revenue from operations to Rs 1,588.40 crore. Its sales volume was up 8.24 per cent to 3.28 million tonnes in the third quarter of FY26.

However, its consolidated net profit was down 23.6 per cent to Rs 57 crore on a year-to-year basis, on account of the implementation of new labour laws.

"Overall, I see industry in FY26 growing at a rate of about 7 to 8 per cent, and we will grow higher than the industry, for sure," said Shukla.

The company, on Monday, launched Green PRO LC3, one of the country's first commercially available Limestone Calcined Clay Cement (LC3).

Green PRO LC3, which will be produced at the company's integrated Jaykaypuram plant in Sirohi, Rajasthan, which according to JK Lakhsmi Cement has been developed to offer lower carbon intensity, improved durability, and enhanced performance for large-scale infrastructure and high-exposure applications.

"It is going to be about Rs 30 to 35 rupees higher than the base product (per 50 kg bag)," he said.

Like other players, JK Lakhsmi Cement is also trying to increase its topline and EBITDA through premium products. The company expects contributions from the premium products to increase in the coming years, which are mainly sold through trade channels.

"In the non-trade segment, premium product does not sell, and in the trade segment, we are one of the leaders," he said, adding, "In the last quarter, premiuim products contributed to 26 per cent."  Over allocation of Rs 20,000 crore for carbon capture, utilisation and storage (CCUS) by the government in the proposed Union Budget for 2026-27, Shukla said, this is as per the government's 2070 net-zero target.

"We plan to be carbon net zero by 2047, and the launch of LC3 is a step in that direction," he added.

Over the expansion, Shukla said, JK Lakshmi Cement's current capacity is 18 million tonnes per annum (MTPA), and is working to have an installed Cement Capacity of 30 MTPA by 2030.

"We have planned to enter into the eastern region, north region and even to expand in western part also. We have projects which are at different stages of progress," he said.

JK Lakhsmi Cement is expanding the clinker capacity at its integrated cement plant at Durg in Chhattisgarh by putting up an additional clinker line of 2.3 MMTPA, four cement grinding units aggregating to 4.6 MTPA at Durg in Chhattisgarh. Besides, three split-location cement grinding units with aggregate cement grinding capacity of 3.4 MTPA at Prayagraj in UP, Madhubani in Bihar and Patratu in Jharkhand.