JK Cement lifts quarterly profit as surging volumes cushion margin squeeze

JK Cement’s second-quarter profit rose 6.3% to ₹169.3 crore as strong cement volumes and higher revenue offset pressure on operating margins, while the company advanced its north India expansion and paint-sector plans.

JK Cement reported a rise in second-quarter profit as higher volumes helped offset margin pressure in the September quarter. According to Business Standard, consolidated net profit increased 6.3% year on year to ₹169.3 crore, while revenue from operations climbed 23.65% to ₹3,733.42 crore. The company’s grey cement sales rose 21% to 5.37 million tonnes and white cement volumes increased 13% to 0.49 million tonnes.

The results show a business still benefiting from demand growth, but facing some squeeze on profitability. Stockwatch.live reported that operating margin slipped to about 13.6% from 16.1% in the June quarter and 14.8% a year earlier, while net profit margin fell to 4.5% from 6.75% in the previous quarter. Even so, the company said earnings before interest, tax, depreciation and amortisation came in at ₹500 crore, with EBITDA per tonne of ₹852, reflecting the impact of cost pressures that have weighed on the sector.

JK Cement is also pressing ahead with a major expansion plan as it seeks to raise grey cement capacity to 50 million tonnes a year by FY30. The company is building out 7 million tonnes a year of additional grey cement capacity in north India, with projects under way in Jaisalmer, Bikaner and Bhatinda in Rajasthan. Business Upturn said the Jaisalmer project carries a total cost of ₹3,630 crore, of which ₹1,831 crore had already been spent by September 2026, while the Bikaner and Bhatinda projects are expected to be commissioned in the first half of FY28.

Beyond cement, the company is widening its push into adjacent businesses. Business Standard and InvestyWise said JK Maxx Paints, a wholly owned subsidiary, will set up a water-based paint plant in Telangana with annual capacity of 75,000 kilolitres and estimated capital expenditure of ₹130 crore. Stockfin.ai also reported that the board approved the appointment of Price Waterhouse Chartered Accountants LLP as statutory auditor for a five-year term, alongside the unaudited quarterly results.

The company has also highlighted sustainability and social-development work alongside its expansion strategy. Business Upturn said JK Cement has scored 76 out of 100 in the S&P Global DJSI corporate sustainability assessment and received an A- score from CDP for water-security measures. It added that the company’s CSR spending of ₹25.04 crore had reached about 6 lakh people through programmes in education, health and social development.

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