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.
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.
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.
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.