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Informist, Wednesday, Aug. 5, 2026

By Ritwika Dutta

MUMBAI - JK Lakshmi Cement Ltd. is expected to report an on-year decline in its net profit for the June quarter due to elevated fuel prices and higher packaging and operating costs driven by the war in West Asia, according to brokerages tracking the company. However, healthy demand from the infrastructure segment and stable pricings are expected to support revenue growth.

The cement manufacturer is expected to report a consolidated net profit of INR 966 million for the June quarter, down 36% on year and also down 22% on quarter, according to the average of estimates from seven brokerages. The highest estimate for the company's net profit is INR 1.11 billion from Nirmal Bang Equities Pvt. Ltd. and the lowest is INR 789 million from HDFC Securities Ltd.

The company's consolidated net sales for the June quarter are expected to be INR 17.70 billion, up almost 2% on year but down 7% sequentially, according to the average of estimates. The highest estimate for the June quarter net sales is INR 17.98 billion from Elara Securities (India) Pvt. Ltd. and the lowest is INR 17.37 billion from Nirmal Bang. The company had reported net sales of INR 17.40 billion for the year-ago quarter and INR 19.01 billion for the March quarter.

In April, cement companies raised prices to manage the increase in costs due to the war in West Asia. Prices of cement were raised in the south, east, and Central India, according to brokerages. Prices were relatively stable in the west and north. The higher cost of pet coke, packing bags, diesel, and fuel due to the war is also expected to raise the company's cost sharply. The recent correction in pet coke prices should provide some relief to JK Lakshmi and support its margin recovery in the second half of the current financial year, brokerages said.

JK Lakshmi is likely to report organic volume growth supported by the delayed onset of the monsoon and a favourable base in north India, according to brokerages. Demand was also strong because of healthy infrastructure spending, retail housing, and pre-monsoon construction activity. However, some moderation was seen due to labour shortages and weak building activity in some regions, according to Prabhudas Lilladher Pvt. Ltd.

The company's earnings before interest, taxes, depreciation, and amortisation are estimated at INR 2.42 billion for the June quarter, down 22% from INR 3.1 billion in the year-ago quarter, according to the average of six estimates. The highest estimate for the company's EBITDA is INR 2.64 billion from Prabhudas Lilladher and the lowest was INR 2.21 billion from HDFC Securities.

Brokerages expect the cement maker's EBITDA per tonne to remain broadly stable in the June quarter. The April price hikes are likely to offset the 5% on-year increase in operating costs, according to Elara Securities (India) Pvt. Ltd.

JK Lakshmi Cement is a manufacturer and supplier of cement and cement products such as ready-mix concrete and autoclaved aerated concrete blocks with manufacturing facilities in Rajasthan, Chhattisgarh, Gujarat, Haryana, Uttar Pradesh, and Odisha. In addition to cement products, the company's portfolio includes a host of value-added products and services.

Going ahead, brokerages expect peak fuel inflation to negatively affect profitability in the September quarter as this coincides with the seasonal lull due to the monsoon. There is a low possibility of cement companies raising prices in the near future, brokerages said. Recovery in demand and pricing is expected after the monsoon, depending on an improvement in construction activity, according to Prabhudas Lilladher. The company will detail its June quarter earnings Wednesday.

At 0936 IST, share of JK Lakshmi Cement were trading marginally up at INR 572.85 on the National Stock Exchange. The stock is down almost 8% since the company reported its March quarter earnings on May 20.

Of the 11 brokerage reports on JK Lakshmi Cement available with Informist, 10 have a 'buy' recommendation on the stock with an average target price of INR 800.1 per share, implying an upside of 40% from the current market price. One brokerage has a ‘sell' with a target price of INR 630.

The following are the Apr-Jun quarter earnings estimates for JK Lakshmi Cement from seven brokerages in descending order of consolidated net profit, in INR million:

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Edited by Pankaj Aher 

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