Industry-Leading Vol Growth to Continue

Research evidence excerpt

Industry-Leading Vol Growth to Continue

hlighted that Co used up Clinker stock Exhibit 1 - JKCE: Key Financials and

assumptionsfrom last qtr and therefore despite higher maintenance, Co could produce higher volumes. In (Rsmn) FY24 FY25 FY26 FY27e FY28e FY29e

other key markets (North/South), Co is growing broadly in line with industry trends. RevenueEBITDA 115,56020,598 118,79220,271 137,22323,743 161,61726,814 182,15234,498 202,46639,959

YoY % 56.7 (1.6) 17.1 12.9 28.7 15.8

PAT 7,954 7,692 10,357 11,383 14,946 17,239

Cost inflation to peak in 2Q: Mgmt expects ~Rs150/T of variable cost inflation in 2Q, primarily EPSVols (mnT) 10319 10020 13423 14726 21330 24533

driven by fuel and freight. Maintenance costs are expected to remain broadly stable QoQ YoY%EBITDA/T (Rs) 1,08317% 1,0036% 1,01216% 1,01613% 1,16113% 1,21011%

ROCE (%) 15.5 13.9 15.1 15.3 16.8 15.9or slightly lower (Rs500mn additional cost taken in 1Q), while packing costs are likely to Capacity (MTPA) 22 24 32 33 40 40 Net Debt/EBITDA (x) 1.9 1.9 2.2 2.5 2.0 1.7

moderate/reverse after the spike seen in 1Q. Overall, 2Q profitability is expected to face EV/EBITDAEV/T (USD) (x) 22.4244 22.7219 19.9162 18.2154 14.2127 12.2127

pressure from higher variable costs (and will be peak cost) as well as negative Oplev due to .Source:P/E (x) Company; Jefferies53.0 54.8 40.7 37.0 25.6 22.2

the seasonally lower volumes.

North capacity build-out on track: Co is targeting 7MTPA grey cement expansion in North

India by 1HFY28 (guidance maintained), taking cumulative capacity to ~40MTPA (target

50MTPA by 2030). Mgmt targets Rs35bn capex for FY27 and Rs12bn for FY28, primarily for

the ongoing projects.

Paints/RMC: The paints business registered Rs3.8bn of revenue in FY26, with mgmt. targeting

over Rs5-5.5bn in FY27.