Whalesbook
JK Lakshmi Cement Ltd. reported a 23.4% decrease in net profit for the fourth quarter of fiscal year 2026, bringing it to ₹124.1 crore compared to ₹175.7 crore in the prior year's quarter. Revenue from operations saw a minor increase of 0.2%, reaching ₹1,901.5 crore from ₹1,897.6 crore.
Rising Expenses Squeeze Profitability
Earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 18.5% to ₹286.1 crore, and the EBITDA margin compressed to 15.1% from 18.5%. Total expenses increased to ₹1,752.86 crore from ₹1,667.41 crore. Higher costs for transport, clearing, and forwarding charges, which grew to ₹419.62 crore from ₹390.84 crore, and increased finance costs, up to ₹53.19 crore from ₹44.37 crore, contributed to the reduced profitability.
Dividend and Strategic Acquisitions
Despite the profit decline, the Board of Directors proposed a dividend of ₹6.50 per equity share, representing a 130% payout for the fiscal year 2026. In strategic developments, the company was named the preferred bidder for three limestone blocks in Assam, totaling 605 hectares. Following the fiscal year-end, JK Lakshmi Cement acquired a 77.96% stake in NECEIVI Cement Limited, making it a subsidiary. An upfront payment of ₹12.32 crore was made for the newly acquired limestone blocks.
Expansion Plans Underway
JK Lakshmi Cement is pursuing significant expansion, including a new railway siding at its Dug cement plant, a ₹325 crore project funded by debt and internal accruals, with its first phase completed. The company is also expanding its clinker and cement grinding capacities in Chhattisgarh, Uttar Pradesh, Bihar, and Jharkhand through a ₹3,000 crore capital expenditure program, scheduled for completion by March 2028.
Market Outlook and Challenges
The company anticipates a potential slowdown in government capital expenditure and a growth rate of 6-7% for cement demand in FY27. These expectations are shaped by global geopolitical factors in West Asia, rupee depreciation, and ongoing supply chain issues. Ahead of the earnings report, JK Lakshmi Cement's shares closed at ₹635.30 on the NSE, down 1.44% from the previous day.