JK Cement warns of ₹150/tonne cost spike in Q2 as paint swings to breakeven
Q1 standalone sales rose 23% to ₹3,786 cr but margins compressed on higher fuel and maintenance costs. Management sees peak cost pressure in Q2, while paint business hits EBITDA breakeven at ₹125 cr revenue.
— 5 earlier stories on JK Cement Ltd. →What's new
- Q1 standalone net sales up 23% to ₹3,786 cr, grey cement volumes up 19%.
- Consolidated EBITDA fell to ₹648 cr from ₹688 cr on higher fuel and maintenance costs.
- Management expects another ₹150/tonne cost increase in Q2, with peak in that quarter.
Why this matters
Margins are being squeezed by cost inflation, and the guidance for further increases suggests pressure will persist through H2. Paint breakeven is a positive but small relative to cement.
What we're watching
- Whether cost pressures ease after Q2 as fuel prices stabilize.
- Progress on Jaisalmer greenfield commissioning in H1 FY28.
- Paint business scale-up and margin trajectory.
The full read
Volume surged 19% but margins tightened. JK Cement's Q1 standalone sales hit ₹3,786 cr, up 23%, yet consolidated EBITDA slipped to ₹648 cr from ₹688 cr as fuel and maintenance costs ate into profits. Management warned of a further ₹150 per tonne cost increase in Q2, peaking in that quarter, before easing. The paint business reached EBITDA breakeven on ₹125 cr revenue, a nice milestone for a young segment but tiny relative to cement. Net debt of ₹3,864 cr with a 1.69x debt-to-EBITDA ratio is manageable, though the cost outlook keeps it in check. The transcript itself is just a backward-looking record of the July 20 call; the core data was already out. The cost guidance is the one new thread to watch.
Questions answered
- Why did EBITDA decline despite higher revenue?
- Higher fuel and maintenance costs compressed margins. Consolidated EBITDA fell to ₹648 cr from ₹688 cr a year ago, even as revenue grew.
- What is the outlook for costs?
- Management guided for a further ₹150 per tonne cost increase in Q2, primarily from fuel and diesel, with peak costs expected in that quarter.
- How is the paint business performing?
- Paint revenue reached ₹125 crore in Q1 and achieved breakeven at the EBITDA level, a milestone for the new segment.
- What is the debt position?
- Net debt stood at ₹3,864 crore as of June 30, with a net debt-to-EBITDA ratio of 1.69 times.
- When will the Jaisalmer greenfield project come online?
- The Jaisalmer project is on track for commissioning in the first half of FY28.
JK Cement Ltd.
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All notes on JKCEMENT →- 21 Jul 2026 · 6:10 PM IST JK Cement warns of ₹150/tonne cost spike in Q2 as paint swings to breakeven
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