JSW Cement Q2 FY27 Results (NSE: JSWCEMENT)
Signal: Margin pressure
The read
The trajectory is still capacity-led, with revenue accelerating to ₹1,912.15 crore, +33.2% YoY, but Q2 marks a sharp margin setback: EBITDA margin fell to 15.4% from the prior-year 21.0% implied by the reported P&L as power and fuel rose 69.8% and freight 30.4%; the next thesis test is whether the two approved 2 MTPA projects can scale without further balance-sheet and cost pressure.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,912.15 Cr | +33.2% | +0.8% |
| EBIT | ₹195.15 Cr | -11.9% | |
| Net profit | ₹77.63 Cr | +3.0% | |
| EPS | ₹0.63 | -11.3% | |
| EBIT margin | 15.4% |
P&L walk
Revenue accelerated to ₹1,912.15 crore, +33.2% YoY and +0.8% QoQ, but EBITDA declined 2.0% YoY to ₹294.93 crore as power, freight and depreciation costs grew faster than sales; PAT still rose 3.0% YoY to ₹77.63 crore.
Key positives
- Revenue was ₹1,912.15 crore, up 33.2% YoY, accelerating from 21.5% YoY in Q1FY27.
- The company approved 2.0 MTPA GGBS capacity at Vijayanagar, targeted by May’28, and 2.0 MTPA grinding capacity at Dolvi, targeted by Oct’28.
- PPE increased to ₹7,393.32 crore and CWIP to ₹1,055.91 crore, while depreciation rose 25.5% YoY to ₹99.78 crore, indicating capex is entering the operating asset base.
- Current-quarter PAT of ₹77.63 crore was achieved without an exceptional item, compared with the prior-year quarter's ₹75.36 crore.
Key concerns
- EBITDA fell 2.0% YoY to ₹294.93 crore despite 33.2% revenue growth, and EBITDA margin compressed to 15.4%.
- Power and fuel expense rose 69.8% YoY to ₹383.39 crore and freight and handling rose 30.4% to ₹428.11 crore, showing material cost absorption.
- Finance costs increased 14.1% YoY to ₹114.45 crore as gross borrowings rose to ₹4,446.19 crore; net debt increased by ₹652.41 crore from March 2026.
- Operating cash flow declined to ₹418.03 crore in H1FY27 from ₹508.18 crore in H1FY26 while the company is funding further capacity through internal accruals and debt.
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