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Informist, Thursday, Aug. 6, 2026

 

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--JK Lakshmi: Higher fuel costs led to increase in production costs in Q1 
--CONTEXT: Comments by JK Lakshmi Cement mgmt in post-earnings analyst call 
--JK Lakshmi: Expect total capex of INR 15 billion in FY27 
--JK Lakshmi: 90% of sales come from Rajasthan, Chhattisgarh, Haryana, UP 
--JK Lakshmi: Expect total capex of INR 20 bln in FY28 
--JK Lakshmi: Expect fuel costs to remain high in Jul-Sept 
--JK Lakshmi: Scouting for land, applying for clearances for North-East foray 
--JK Lakshmi: Plan to set up plant of 1.5 mln tn capacity in North-East 

 

By Gunjan Rajput and Avishek Rakshit

 

KOLKATA/NEW DELHI – JK Lakshmi Cement Ltd. expects to incur capital expenditure of INR 20 billion in the financial year 2027-28 (Apr-Mar), higher than the INR 15 billion planned for FY27, as it advances with expansion projects, including its proposed north-east foray. The company also expects elevated fuel costs to persist in Jul-Sept, putting pressure on production costs and margins. 

Speaking at the company's post-earnings conference call on Thursday, management said the FY27 and FY28 capital expenditure would fund ongoing projects at Durg as well as the planned north-east expansion. The guidance excludes land acquisition costs for future projects in Kutch and Nagaur. 

 

"We have started activity... plant land and then getting all those clearances...We are on track. Now, the north-east project has come back on track," the management said, adding that the company plans to initially set up a 1.5-million-tonne cement plant in the region. The company said it is scouting for land and securing statutory approvals, while mining leases are at various stages of environmental and regulatory clearances. Management said it would provide more concrete updates in the September quarter once things are settled.  

The company, however, said a public interest litigation related to land acquisition plans for the project in Assam has not derailed its expansion plans. Management said some nearby villages have approached the Guwahati High Court claiming rights over the land acquired from the local council for the proposed plant, following which JK Lakshmi Cement was also made a respondent as Mahabal Cement Pvt. Ltd., the project entity, is its subsidiary.

 

"Some of the nearby villages have gone for PIL (public interest litigation) claiming that, you know, this land belongs to us," the management said, adding that the North-East project remains on track.

 

The company's net profit fell 28% on year to INR 1.08 billion in the June quarter. Analysts had estimated the company's net profit at INR 966.57 million. The company's revenue from operations rose 9% on year to INR 19.05 billion, driven by growth in its sales volume in the June quarter. Sales volume rose to 3.60 million tonnes during the quarter from 3.33 million tonnes a year ago. Analysts had estimated the company's top line at INR 17.70 billion.

 

JK Lakshmi Cement management said higher fuel costs led to an increase in production costs for the June quarter. The company said it would attempt to pass on the higher costs through cement price hikes, although the seasonal weakness in demand during the monsoon quarter could limit the pace of price increases. "We will try to pass it on to our customers because absorbing this much cost is not possible," the management said.

 

Management also said nearly 90% of the company's sales come from its core markets of Rajasthan, Gujarat, Chhattisgarh, Haryana and parts of Uttar Pradesh, where it continues to optimise its geographical mix to improve realisations and reduce lead distance.

 

JK Lakshmi Cement's June quarter earnings were announced on Wednesday after market hours. Thursday, shares of the company closed nearly unchanged at INR 571.25 on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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