Earnings Review
JK Cement Q1 PAT down for 3rd quarter, but beats Street's view
This story was originally published at 16:48 IST on 18 July 2026
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--JK Cement Apr-Jun net profit INR 2.91 bln
--Analysts saw JK Cement Apr-Jun net profit INR 2.78 bln
--JK Cement Apr-Jun revenue INR 38.66 bln
--Analysts saw JK Cement Apr-Jun revenue at INR 35.49 bln
--JK Cement Apr-Jun net profit INR 2.91 bln vs INR 3.32 bln year ago
--JK Cement Apr-Jun revenue INR 38.66 bln vs INR 31.90 bln year ago
--JK Cement Apr-Jun operating margin 16.52% vs 21.10% year ago
--JK Cement Apr-Jun grey cement sales volume 5.96 mln tn, up 18% on year
--JK Cement Apr-Jun EBITDA INR 6.39 bln, down 5% on year
--JK Cement Apr-Jun EBITDA/tn INR 982, down 20% on year
By Shreya Shetty
MUMBAI – In the June quarter, JK Cement Ltd. saw a fall in its net profit for the third consecutive quarter due to high costs, though its revenue saw the highest growth in 10 quarters. However, both the bottom line and top line beat analysts' estimates.
JK Cement's net profit fell more than 12% on year to INR 2.91 billion in Apr-Jun from INR 3.33 billion a year earlier. Analysts had estimated the company's net profit at INR 2.78 billion. From the previous quarter, the bottom line fell nearly 16%. The company's revenue from operations rose over 21% on year to INR 38.66 billion. The revenue beat the Street's expectation of INR 35.17 billion for the quarter. The top line was up just 5% from the trailing quarter.
The company's operating margin for the June quarter was 16.52%, down from 21.20% a year ago.
The company's profit for the June quarter fell as expenses rose at a faster pace than the revenue. The company incurred total expenses of INR 34.83 billion during the quarter, 27% higher than a year ago. This was mainly due to a sharp rise in the cost of materials consumed and other expenses, which rose 36% and 43% on year, respectively.
Freight and forwarding expenses, which accounted for more than 25% of the total expenses, rose almost 22% from a year ago to INR 8.79 billion. The company spent INR 6.44 billion on power and fuel, 13% higher than a year ago.
The company's grey cement sales volume rose 18% on year to 5.96 million tonnes, while its white cement volumes were up 29% from a year ago at 540,000 tonnes. Grey cement capacity utilisation during the quarter was at 75% and clinker utilisation was 76%. Blended cement accounted for 67% of grey cement sales, up from 65% seen in the trailing quarter. For the quarter, the company recorded grey cement net sales of INR 30.30 billion, up 21% on year.
JK Cement's earnings before interest, tax, depreciation, and amortisation for the June quarter fell 5% on year to INR 6.39 billion, and its EBITDA per tonne fell 20% from the previous year to INR 982.
Net sales realisation for grey cement rose to INR 5,065 per tonne in the reporting quarter from INR 4,841 per tonne in the March quarter. The trade mix was 69% of total grey cement volumes, up from 68% in the previous quarter, while premium products contributed about 18% to trade sales.
On Friday, shares of the company closed 0.7% lower at INR 5,391 on the National Stock Exchange. End
Edited by Avishek Dutta
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