JK Lakshmi Cem. Q1 FY27 Results (NSE: JKLAKSHMI)
Signal: Margin pressure
The read
The key inflection is a second consecutive quarter of YoY margin contraction: EBITDA margin fell 500bps in Q4FY26 and another 400bps to 14.4% in Q1FY27, while revenue growth remained positive at 9.4% and sales volume rose 8.2% to 35.98 lakh tonnes; the thesis now depends on fuel-cost relief and execution of the ₹3000 Crores Durg expansion without excessive leverage.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,904.78 Cr | +9.4% | +0.2% |
| EBIT | ₹191.28 Cr | N/A | |
| Net profit | ₹108.02 Cr | -31.8% | |
| EPS | ₹8.7 | -31.8% | |
| EBIT margin | 14.4% |
P&L walk
Revenue rose to ₹1904.78 crore, +9.4% YoY and +0.2% QoQ, supported by 35.98 lakh tonnes of sales volume, but EBITDA margin contracted 400bps YoY to 14.4%, taking PAT down 31.8% to ₹108.02 crore.
Key positives
- Revenue increased 9.4% YoY to ₹1904.78 crore while sales volume rose 8.2% to 35.98 lakh tonnes, indicating continued demand and volume momentum.
- The Durg expansion adds a disclosed 2.30 MTPA clinker line and 4.6 MTPA grinding capacity for ₹3000 Crores, with completion targeted by March 2028.
- Green power represented 49% of the company's power mix, and TSR at Sirohi is being increased from 4% to 16% in phases.
Key concerns
- EBITDA margin contracted 400bps YoY to 14.4% despite 9.4% revenue growth, causing PAT to fall 31.8% to ₹108.02 crore.
- Management explicitly flags persistent fuel-cost uncertainty and Middle East geopolitical tensions as risks to crude and petcoke prices, leaving margin recovery dependent on input-cost normalization.
- Net debt/EBITDA increased to 1.38x from 0.99x in the disclosed standalone comparison as the company funds the railway siding and Durg expansion through debt and internal accruals.
Research and educational content only. Not investment advice.