JSW Cement reported a 33% YoY jump in Q2 FY27 revenue to INR 1,912 crore, driven by a 40% surge in cement volumes. While the company achieved an EBITDA breakeven in the North region and commissioned new capacity at Nagaur, investors are weighing these gains against elevated fuel costs and a debt-to-EBITDA ratio of 3.2x.
JSW Cement Q2 Revenue Hits INR 1,912 Crore, Volumes Grow 40%
Consolidated EBITDA Rises 4% YoY to INR 278 Crore
Reader Takeaway: Strong volume growth and North region breakeven offset by elevated fuel costs and higher-than-target leverage.
What just happened
JSW Cement reported consolidated revenue of INR 1,912 crore for Q2 FY27, a 33% increase compared to the same period last year. Total sales volumes climbed 26% to 3.93 million tons, with cement-specific volumes contributing 2.29 million tons, reflecting a robust 40% year-on-year growth. Net profit for the quarter stood at INR 77 crore.
Why this matters
The company achieved a critical operational milestone as its North region operations reached EBITDA breakeven. Additionally, the successful commissioning of 1 MTPA grinding capacity and waste heat recovery systems at the Nagaur integrated unit marks a step forward in capacity expansion and energy efficiency. Green power utilization has now reached 41%.
What changes now
Management has provided a capital expenditure guidance of INR 2,200-2,300 crore for FY27. Despite the growth, the company is dealing with margin pressure due to rising fuel costs, which ticked up to INR 1.84/MCal this quarter. To counter this, JSW Cement has implemented price hikes in several markets during September and October.
Risks to watch
The net debt-to-EBITDA ratio currently sits at 3.2x, slightly above management’s target of 3.0x. Furthermore, trade payables remain high at approximately 80 days, significantly higher than the industry standard of 30-40 days. Management attributed this to the ongoing heavy capex cycle and growth phase.
What to track next
Investors should monitor the company's ability to deleverage toward the 3.0x target and the effectiveness of its fuel mix optimization strategy. Future margins will largely depend on sustained pricing power and the full utilization of the newly commissioned Nagaur unit capacity.