JSW Cement SMASHES Expectations! Profit Soars 65%, Analyst Reveals New Target - Is This a Buy Signal?

Brokerage Reports

Updated on 12 Nov 2025, 03:37 pm

Reviewed By

Simar Singh | Whalesbook News Team

Short Description:

Motilal Oswal's research report highlights JSW Cement's strong performance in the second quarter of FY26, with EBITDA increasing by approximately 65% year-on-year to INR2.7 billion, significantly beating estimates. EBITDA per tonne also surged by about 44%. The company posted a profit after tax (PAT) of INR864 million, a substantial turnaround from a loss in the previous year. Motilal Oswal has maintained a 'Neutral' rating on the stock but revised its target price to INR138.

JSW Cement SMASHES Expectations! Profit Soars 65%, Analyst Reveals New Target - Is This a Buy Signal?

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Detailed Coverage:

Motilal Oswal's latest research report on JSW Cement (JSWC) indicates a robust performance for the second quarter of FY26. The company's EBITDA exceeded expectations, growing by roughly 65% year-on-year to INR2.7 billion, driven by higher sales volumes and reduced operational expenses per tonne. The EBITDA per tonne metric saw a significant jump of approximately 44% year-on-year, reaching INR860, well above the estimated INR657. The operating profit margin (OPM) also improved by 5.4 percentage points year-on-year to around 19%. JSW Cement reported a profit after tax (PAT) of INR864 million, a significant positive shift from a loss of INR368 million recorded in the second quarter of FY25.

Impact This strong financial performance could boost investor confidence in the cement sector and JSW Group. While the brokerage maintains a neutral stance, the improved operational efficiency and profitability are positive indicators. The revision in target price reflects adjustments based on updated valuations.

Terms Explained: EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a measure of a company's operating performance. EBITDA/t: EBITDA per tonne, indicating profitability on each tonne of cement produced. OPM: Operating Profit Margin, which is the ratio of operating profit to net sales. PAT: Profit After Tax, the net profit remaining after all expenses and taxes have been deducted. EV/EBITDA: Enterprise Value to EBITDA, a valuation metric used to assess a company's value relative to its earnings before interest, taxes, depreciation, and amortization.