JK Cement Q2 FY27 results: net profit up 6.3% to ₹169.30 crore, revenue up 23.7%

How did JK Cement perform in Q2 FY27?

On the consolidated basis, JK Cement reported Q2 FY27 revenue of ₹3,733 crore, up 23.7% from ₹3,019 crore in Q2 FY26. EBITDA rose 13.6% to ₹507.43 crore, but the margin fell 1.2 percentage points to 13.6%. PBT was ₹255.56 crore, up 5.2%, and net profit was ₹169.30 crore, up 6.3% from ₹159.25 crore. Basic EPS was ₹22.39 against ₹20.78.

Against Q1 FY27, revenue fell 7.4% to ₹3,733 crore and total income fell 7.4% to ₹3,771.29 crore. EBITDA fell 21.7% to ₹507.43 crore and its margin declined 2.5 percentage points to 13.6%. PBT fell 37.1% to ₹255.56 crore, while net profit fell 38.4% to ₹169.30 crore and basic EPS fell 37.6% to ₹22.39.

On the standalone basis, revenue was ₹3,594.7 crore, PAT was ₹190.0 crore, and profit before exceptional item was ₹175.78 crore. The company’s investor presentation reported standalone revenue from operations of ₹3,595 crore, EBITDA of ₹500 crore and an EBITDA margin of 14.2% for Q2 FY27.

What changed in JK Cement's costs and profit?

Total expenses rose 24.3% year on year to ₹3,516 crore from ₹2,827 crore in Q2 FY26, outpacing the 23.7% increase in revenue. Cost of materials rose 32.6% to ₹579.88 crore, other expenses rose 29.9% to ₹2,416 crore, and employee cost rose 19.7% to ₹296.47 crore. Finance costs increased 13.8% to ₹119.73 crore and depreciation rose 13.7% to ₹169.99 crore.

Other income fell 25.6% year on year to ₹37.87 crore from ₹50.88 crore. The company reported a ₹0.02 crore exceptional charge in Q2 FY27, against a ₹0.16 crore gain in Q2 FY26. Tax expense rose 3.1% to ₹86.26 crore from ₹83.63 crore, and the PAT margin declined 0.8 percentage points to 4.5%.

The investor presentation said lower volumes and an inability to pass on cost increases due to seasonal impact resulted in lower profitability. It reported standalone fuel cost of ₹1.71/kcal, up 10% year on year from ₹1.56/kcal, while employee cost per tonne and other expenses per tonne also rose. Sequentially, total expenses fell 4.1%, but other expenses rose 4.4% and tax fell 34.4%.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹7,765.14 crore, up 21.9% from ₹6,371.73 crore in H1 FY26, while total income was ₹7,842.26 crore, up 21.0%. PBT fell 9.6% to ₹661.71 crore and PAT fell 8.2% to ₹443.92 crore from ₹483.5 crore. Basic EPS was ₹58.3 against ₹62.76.

The company’s investor presentation showed H1 consolidated total net sales of ₹7,457 crore, up 21% from ₹6,167 crore, and combined EBITDA of ₹1,155 crore, up 2% from ₹1,134 crore. It attributed the quarterly profitability decline to lower volumes and an inability to pass on cost increases due to seasonal impact.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹20,424.1 crore against ₹18,499.97 crore on 31 March 2026, while total equity was ₹7,392.07 crore against ₹7,090.31 crore. Borrowings rose to ₹7,387.22 crore from ₹6,073.63 crore, and cash fell to ₹42.74 crore from ₹118.95 crore. Inventories were ₹1,700.89 crore, trade receivables ₹955.02 crore and trade payables ₹1,352.21 crore.

H1 FY27 operating cash flow was ₹653.6 crore against ₹509.8 crore in H1 FY26. Investing cash flow was negative ₹1,659.42 crore against negative ₹947.55 crore, while financing cash flow was ₹916.99 crore against ₹143.43 crore. Capital expenditure was ₹1,739.9 crore, compared with ₹1,157.99 crore in H1 FY26.

How has JK Cement done over the last 8 quarters?

Revenue rose year on year in each of the last 7 quarters. Across the available eight-quarter series, revenue peaked at ₹4,031.72 crore in Q1 FY27 before falling to ₹3,733.42 crore in Q2 FY27. The lowest quarterly revenue was ₹2,930.28 crore in Q3 FY25.

Net profit peaked at ₹361.33 crore in Q4 FY25 and bottomed at ₹159.25 crore in Q2 FY26 before recovering to ₹330.88 crore in Q4 FY26. It then fell to ₹274.62 crore in Q1 FY27 and ₹169.3 crore in Q2 FY27. EBITDA margin reached its high of 21.4% in Q4 FY25 and its low of 13.6% in Q2 FY27.

What else did the company announce?

The board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026 and issued an investor presentation. It also approved amendments to the Insider Trading Code, effective immediately, and recommended Price Waterhouse Chartered Accountants LLP as statutory auditors for five consecutive years, subject to shareholder approval.

The board approved a new water-based paint plant for wholly owned subsidiary JK Maxx Paints Limited with 75,000 KLPA capacity at Raghunadhapalem, Suryapet District, Telangana. The estimated capital cost was ₹130 crore, within the ₹600 crore paints investment already approved, and commissioning was expected about 12 months from the start of construction. The existing Bhiwadi facility, with 73,000 KLPA capacity and 60% utilisation, was projected to reach full utilisation by FY 2027-28.

What did JK Cement's management say?

Management maintained FY27 grey cement volume guidance of 23 MT or more and said it aspired towards 24 MT but would not commit to that figure. It also maintained progress towards 50 MTPA capacity by FY30 and said H1 grey volumes rose 19% to 11.3 MT. The CFO said, “our guidance is 23 million plus. I am not committing anything on 24 million ton volume number.”

Management maintained paint revenue guidance of ₹500-550 crore for FY27 and expected FY28 revenue to grow by at least ₹150 crore, with positive FY27 EBITDA and a 3-5% FY28 EBITDA margin. It said Jaisalmer and Bikaner commissioning was targeted for H1 FY28, Bathinda for September 2027 and Mahan coal for H1 FY29. The CFO said, “we are confident to commission the plant in first half of FY28.”

Management identified fuel-cost inflation, delayed price pass-through, pollution curbs, drought and possible UP election disruption as risks. It said white cement price increases could remain difficult because customers resist passing through higher costs, and Fujairah export restrictions could prevent Indian output from fully compensating overseas white-cement demand. The CFO said JK Cement had gained market share in Central India.

How did JK Cement shares react?

The filing appeared after market hours from a previous close of ₹4,880.0. The stock moved down 0.6% after 5 minutes, then up 0.3% after 15 minutes and 0.4% after 30 minutes. It closed the reaction day up 1.0%; by the next day’s close it was up 0.2% from its pre-results close, and by five sessions it was up 0.8%.

The industry median move was 1.0% on the reaction day, 0.2% by the next day’s close and 0.3% by five sessions. JK Cement’s relative move was -0.0 percentage points on the reaction day, -0.1 percentage points by the next day’s close and 0.5 percentage points by five sessions. The Nifty Midcap 150 rose 1.1%, 2.0% and 3.5% over the same closes.

Past results-day moves were mixed: the stock rose 1.9% on 18 July 2026 and fell 1.8% on 23 May 2026. Earlier reactions included declines of 1.4% on 17 January 2026, 5.3% on 1 November 2025 and 1.5% on 19 July 2025, alongside gains of 2.6% on 24 May 2025, 1.1% on 25 January 2025 and 3.1% on 26 October 2024.

How did other Cement & Cement Products companies do?

Nineteen other Cement & Cement Products companies that had filed for the quarter had a median revenue growth of 11.0%. Of the 19 peers, 14 grew more slowly than JK Cement and 5 grew faster. Eight of the 19 peers reported higher profit.