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Informist, Monday, Oct. 26, 2026

MUMBAI - Cement manufacturer JSW Cement is expected to report moderate growth in its September quarter bottom line, though its net sales are likely to report double-digit growth. The company's net profit growth was slowed down by higher raw material costs and operational de-leverage, according to brokerages tracking the company.

 

JSW Cement, part of the JSW group, is expected to report a consolidated net profit of INR 940 million for the September quarter, up 9% on year, according to the average of estimates from seven brokerages. The estimates for net profit range from a high of INR 1.4 billion from Equirus Securities Pvt. Ltd. to a low of INR 600 million from Systematix Shares and Stocks (India) Ltd. Sequentially, its net profit is likely to decline 41%.

 

The company's consolidated net sales for the September quarter are expected to rise to INR 18.10 billion, up 26% from a year ago. The highest estimate for net sales is INR 19.26 billion from Kotak Securities Ltd. and the lowest is INR 16.06 billion from JM Financial Institutional Securities Pvt. Ltd. Sequentially, net sales are expected to fall 4.5%.

 

JSW Cement's earnings before interests, taxes, depreciation, and amortisation are likely to rise 65% on year to INR 2.6 billion but fall 11.6% on quarter. To improve cost efficiency, the company decided in late September to fully absorb its subsidiary, Shiva Cement. This is expected to enable backward integration for clinker manufacturing and cut costs.

 

An extended construction season due to a delayed monsoon helped drive cement demand in the country. JSW Cement's expansion of its Nagaur plant in Rajasthan helped the company capitalise on the growing demand.

 

However, the company's net margins were squeezed by high raw material inflation which prompted it to increase cement prices. However, the benefits of these price increases will only reflect in the company's balance sheet from the December quarter onward. Higher variable costs for JSW, combined with stagnant sales volumes, will directly affect the company's net profit, Equirius said.

 

US pet coke prices rising to a three-and-a-half year high will hit the company's profit the most, JM Financial said. The company is expected to post more price increases in the coming months, the brokerage added. Nevertheless, the company is expected to benefit from a diversified product mix which protects it from lower performance in any single product category. The company also used a lower proportion of clinker in its final cement mix, substituting it with cheaper alternative materials to lower its production costs. The sustainability of price hikes and the subsequent demand response will be key factors to watch for the company's long-term profitability, Equirus said. 

 

Monday, shares of the company ended slightly down at INR 117.60 apiece on the National Stock Exchange. The shares are down 10% since the company announced its June quarter earnings.

 

Of the five research reports on the company available with Informist, four have a 'buy' call on the stock with an average target price of INR 146, implying an upside of almost 25% over the current market price. One brokerage has a "sell" call with a target price of INR 125.

 

Following are the July-Sept earnings estimates for JSW Cement from seven brokerage firms in descending order by the estimate of net profit, in INR billion:

 

Brokerage	Net Sales	Net Profit	EBITDA
Equirus Securities Pvt. Ltd.	18.876	1.394	2.732
Kotak Securities Ltd.	19.257	1.291	2.764
Prabhudas Lilladher Pvt. Ltd.	18.449	0.926	2.651
JM Financial Institutional Securities Pvt. Ltd.	16.066	0.9	2.714
Motilal Oswal Financial Services Ltd.	18.099	0.835	2.812
Emkay Global Financial Services Ltd.	18.42	0.659	2.515
Systematix Shares and   Stocks (India) Ltd.	17.6	0.6	2.30
Average	18.10	0.94	2.65

 

End

 

Reported by Pranav Varshney

Edited by Megha Rawat

 

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