Can JK Cement’s industry-leading volume growth earn brownie points as cost pressures rise?

Harsha Jethmalani
1 min read26 May 2026, 02:10 PM IST
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JK’s superlative volume growth and market share gains are mainly an outcome of its expanded footprint in central and eastern India. (Bloomberg)
Summary
JK Cement has showcased remarkable growth with a 13% year-on-year increase in grey cement volumes for Q4FY26, surpassing the industry average. The company's expansion in central and eastern India is a key driver for its success. However, rising costs pose challenges ahead. 

JK Cement’s industry-leading volume growth has been its strong suit lately. Its March quarter (Q4FY26) volumes in mainstay grey cement rose 13% year-on-year to 6.16 million tonnes (mt), beating the industry’s high single-digit growth. Strong volumes, coupled with lower year-on-year blended realizations, meant JK’s consolidated revenue rose by 9% 3,887 crore in Q4.

JK’s FY26 grey cement volumes jumped 17% to about 21 mt. Volumes are poised for double-digit growth even in FY27 as against the projected industry demand growth of 6-8%.

JK’s superlative volume growth and market share gains are mainly an outcome of its expanded footprint in central and eastern India. While the management expects competitive intensity in central India to increase with the commissioning of new capacities (Dalmia Bharat’s acquisition of Jaiprakash Associates cement assets), a material impact is unlikely before Q3FY27.

Also Read | Dalmia to buy JAL cement assets from Adani for ₹2,850 crore

Currently, its grey cement capacity is 32.26 mtpa and it targets 50 mtpa by FY30. Its next leg of expansion at units in Jaisalmer, Bikaner and Bhatinda is on track and likely to be commissioned in H1FY28, boosting JK’s geographical presence and growth visibility.

Fuel costs

But cost pressures are mounting in the sector. Fuel cost inflation is a key concern with the management pencilling-in an increase of 150-200/tonne amid geopolitical tensions and volatility in imported fuels.

Also Read | Cement makers turn defensive as West Asia shock lifts input costs

It has also cautioned of freight impact of 50-60/tonne for every 10-12/litre increase in diesel prices. JK has been able to pass through the cost burden via a 10/bag price increase. It is also making cost-savings efforts.

Consolidated Q4 Ebitda declined 11% year-on-year to 682 crore, dragged by high operating expenses in grey cement, where it undertook large expansion, and continued competitive pressure in the white/putty segment. Despite disruptions in UAE operations, white cement volumes could grow in the 8-10% range in FY27, similar to that in FY26.

The paint business clocked revenue of 380 crore in FY26 with an Ebitda loss. JK has guided for 500-550 crore paint revenue and aims for Ebitda breakeven in FY27.

Also Read | Cement makers turn defensive as West Asia shock lifts input costs

JK’s shares have lost about 2% so far in 2026. The stock trades at an FY27 EV/Ebitda of 17x, a slight discount to UltraTech Cement, but higher than Ambuja Cements, according to Bloomberg data.

Despite JK’s stellar volume growth prospects, some brokerages have trimmed their FY27/FY28 earnings estimates, citing cost inflation concerns and a subdued monsoon outlook.

About the Author

Harsha Jethmalani is a Deputy Editor at Mint with over a decade of experience covering stock markets and corporate India. As a key member of the Mark to Market team, she specializes in delivering cutting-edge commentary on market trends, the economy, and corporate financial reports.<br><br>Born and raised in Mumbai, Harsha’s entry into business journalism was a serendipitous pivot. Graduating during the 2008–2009 financial crisis, her initial goal of becoming a research analyst at an MNC was rerouted. However, what began as a chance career move quickly became a conscious choice; she discovered that financial journalism is a powerful storytelling tool capable of influencing and empowering the financial decisions of a massive audience.<br><br>Harsha began her career in 2009 at IRIS Business Services (Myiris.com), tracking mutual funds and interviewing fund managers. In 2011, she joined the Network18 Group, writing extensively on equity market trends for Moneycontrol.com and hosting pre- and post-market audio updates. Following a stint covering personal finance at Dalal Times, she joined Mint in 2016 as a Content Producer, steadily rising through the ranks to her current editorial position.<br><br>A defining highlight of her tenure at Mint was her extensive coverage of India's historic Goods and Services Tax (GST) reform. She chronicled the massive indirect tax overhaul from its initial conceptual and execution hurdles to its eventual streamlining. Her impactful reporting earned official recognition when her article exposing a spike in gold smuggling ahead of the GST rollout was formally acknowledged by the Office of the Director General of Audit (Central), Kolkata. Currently, Harsha closely tracks the IT, cement, real estate, and paint sectors. Her sharp news sense and ability to spot emerging trends consistently bring fresh, actionable perspectives to market analysis.<br><br>She holds a postgraduate degree in financial markets from Indira Gandhi National Open University and a Bachelor of Management Studies from Vivekanand Education Society, Chembur, Mumbai.

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