Equity Snap: JK Cement Ltd (JKCE IN): 1Q a marginal beat; expects strong volume growth to continue

Research evidence excerpt

Equity Snap: JK Cement Ltd (JKCE IN): 1Q a marginal beat; expects strong volume growth to continue

20 July 2026

Equity Snap: JK Cement Ltd Equities Construction Materials

(JKCE IN)

1Q a marginal beat; expects strong volume growth to

continue India

◆ JK Cement’s 1QFY27 was marginally ahead of estimates. Pinakin Parekh*

JKCE does not see price declines in seasonally weak 2Q SeniorHSBC SecuritiesAnalyst, Indiaand CapitalMetalsMarketsand Cement(India) Private

Limited

pinakin.parekh@hsbc.co.in

JK Cement Ltd (JKCE IN, INR5453.00, Hold, TP INR5700.00) +91 22 40891549

(Priced as of 20 Jul 2026)

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

1Q a marginal beat, volume growth remains substantially ahead of industry: not registered/ qualified pursuant to FINRA regulations

JKCE reported 1QFY27 EBITDA of INR6.5bn (-6% y/y, -5% q/q), c4% ahead of

Bloomberg consensus of INR6.21bn. Reported PAT stood at INR2.7bn (-15% y/y,

-17% q/q) vs consensus estimate of INR2.6bn. JKCE reported 17.7% y/y volume

growth in 1Q. We focus on blended EBITDA/t, which came in at INR980/t (-2% q/q).

Blended ASP/t was +6.7% q/q and Grey cement ASP/t were 4.7% q/q. Per JKCE

Fuel cost/t was up 1% even as the impact of higher Pet coke prices was offset by mix

changes. While reported standalone net debt was broadly flat q/q, it increased by

32% y/y to INR33.7bn. FY27 capex is guided at cINR35-40bn JKCE is targeting

double digit volume growth in FY27 driven by the ramp up of commissioned capacity

in FY26. Net debt increased 15% q/q to INR38.6bn.

Capacity expansion on track: JKCE’s 7MT grey cement expansion in North India

remains on track, led by the Jaisalmer project, comprising 3MT of cement and 4MT of

clinker capacity. The project entails a capex of INR36.3bn, of which INR11.6bn had