JK Lakshmi Cement Profit Dips 28% Amid Margin Pressure

JK Lakshmi Cement experienced a 28.1% decrease in net profit for the first quarter of FY27, reporting ₹108 crore compared to ₹150 crore in the prior year. This decline occurred even as revenue from operations grew by 9.4% to ₹1,905 crore. The primary driver for the reduced profitability was a significant squeeze on operating margins, with EBITDA falling 16.9% and EBITDA margins narrowing to 13.6% from 17.9%.

The company is actively pursuing strategic initiatives to bolster future performance. Key among these is a substantial capacity expansion at its Durg cement plant, involving a new 2.3 MTPA clinkerisation line and 4.6 MTPA cement grinding units, with an estimated cost of ₹3,000 crore and a completion target of March 2028. Furthermore, JK Lakshmi Cement is enhancing its commitment to sustainability through renewable energy investments, aiming to increase its Thermal Substitution Rate and participating in a solar power plant project.

Despite current challenges like input cost volatility, particularly fuel prices, JK Lakshmi Cement maintains a positive long-term outlook. This optimism is grounded in robust demand fundamentals driven by infrastructure and construction, alongside ongoing efforts in cost optimization and capacity enhancement. The company is also engaged in legal proceedings to recover ₹130 crore related to a cancelled MDO contract in Assam.