JK Cement plans to sell 2.5 million more tonnes next year, with ₹4,000 cr capex
Management guided for double-digit volume growth, backed by the new Buxar plant. It also flagged ₹150-200 per tonne cost headwinds it plans to pass through.
— 1 earlier story on JK Cement Ltd. →What's new
- JK Cement guided for at least 2.5 million tonnes of incremental grey cement volume in FY27.
- Capex for FY27 is set at ₹3,500-4,000 cr, focused on the Jaisalmer project.
- The paints unit is expected to turn EBITDA-positive this year with ₹500-550 cr revenue.
Why this matters
The call's main substance is the FY27 volume target, which anchors the growth story. The ₹150-200 per tonne cost inflation is a headwind, but management's confidence in price hikes keeps the margin outlook intact for now.
What we're watching
- Whether price hikes fully offset the ₹150-200 per tonne cost increase in Q1 results.
- The ramp-up pace of the Buxar grinding unit and its contribution to the 2.5 mt volume target.
- Progress of the Jaisalmer greenfield project and capex execution.
The full read
JK Cement's earnings call was less about the quarter just closed and more about the year ahead. Management guided for 2.5 million tonnes of incremental grey cement volume in FY27, a double-digit growth target. That expansion is to be fueled by the recently commissioned Buxar grinding unit and a capacity increase at Muddapur. The growth comes with a cost: the company expects fuel and input costs to rise by ₹150-200 per tonne. The plan is to pass most of that through to customers. Separately, the company put a capex plan of ₹3,500-4,000 crores on the table for the year, with the bulk earmarked for the greenfield Jaisalmer project. On the newer businesses, the paints unit is on track to become EBITDA-positive this year with revenue of ₹500-550 crores. The call was a forward-looking blueprint. The cost inflation is a known headwind, but the volume commitment is the headline.
Questions answered
- What is JK Cement's core volume target for FY27?
- The company guided for double-digit volume growth, anchored by at least 2.5 million tonnes of incremental grey cement sales. This growth is to be supported by the commissioned Buxar grinding unit and capacity expansion at Muddapur.
- What are the company's main capital spending plans?
- JK Cement outlined a capex plan of ₹3,500-4,000 crores for FY27. The spending is primarily for the greenfield Jaisalmer project and other unspecified initiatives.
- How is the company managing cost inflation?
- Management flagged an expected cost increase of ₹150-200 per tonne from higher fuel and input costs. They expressed confidence in passing on most of the rise through price hikes.
- What is the outlook for the paints business?
- The paint unit is expected to turn EBITDA-positive in the current fiscal year. The target is a top line of ₹500-550 crores.
Story so far
All notes on JKCEMENT →- 26 May 2026 · 5:07 PM IST JK Cement plans to sell 2.5 million more tonnes next year, with ₹4,000 cr capex
- today JK Cement locks in a coal mine. No price, no timeline.