JK Lakshmi Cem. Q2 FY27 Results (NSE: JKLAKSHMI)
Signal: Margin pressure
The read
The trajectory has inflected sharply negative after Q1FY27: Q2 revenue grew 5.6% YoY on 4.9% volume growth, but EBITDA margin contracted 503bps to 10.2% and PAT fell 74.6% to ₹20.88 crore, extending the recent margin deterioration from 19% in Q4FY25 to 18% in Q1FY26, 14% in Q2FY26 and about 10% now. Recovery depends on price realisation and fuel-cost moderation, while expansion is raising CWIP to ₹648.31 crore and H1 operating cash flow is negative ₹103.16 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,616.92 Cr | +5.6% | -15.1% |
| EBIT | ₹164.49 Cr | -29.4% | |
| Net profit | ₹20.88 Cr | -74.6% | |
| EPS | ₹1.68 | -74.7% | |
| EBIT margin | 10.2% |
P&L walk
Consolidated revenue was approximately ₹1617 crore, up about 5.6% YoY, but EBITDA fell about 29% and PAT fell about 75% as fuel, freight and packaging costs remained elevated; subsidiary losses were immaterial but further reduced group profit.
Segments
The company reports one business segment, Cementitious Materials; the consolidated group was only marginally different from standalone, with six subsidiaries recording ₹0.16 crore of income and a ₹0.48 crore quarterly loss.
Key positives
- Cement volume rose 4.9% YoY to 29.83 lakh tonnes while net sales grew 5.6% to ₹1616.92 crore, showing underlying demand was positive despite margin pressure.
- Renewable power represented 48% of the power mix in Q2FY27, and the company is implementing a project to raise TSR at its Sirohi plant from 4% to 16%.
- The Durg expansion remains on schedule for March 2028, comprising a 2.30 MTPA clinker line and 4.6 MTPA grinding capacity for an estimated ₹3000 crore.
Key concerns
- EBITDA margin fell 503bps YoY to 10.2% and 420bps sequentially, while PBIDT declined 29.4% to ₹164.49 crore.
- PAT fell 74.6% YoY to ₹20.88 crore despite 5.6% sales growth, indicating substantial cost absorption rather than a revenue problem.
- H1 operating cash flow turned negative at ₹103.16 crore from positive ₹351.50 crore, driven primarily by a ₹341.62 crore inventory outflow and ₹124.50 crore receivables outflow.
- Net debt/EBITDA increased to 2.31x from 1.25x year ago as six-month capex reached ₹514.80 crore and CWIP rose to ₹648.31 crore.
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