JK Lakshmi Cement's Durg expansion gets costlier and later
Capex revised to ₹4,000 cr from ₹3,000 cr; commissioning pushed to end-FY28. Q4 EBITDA/ton slumps to ₹730 amid cost inflation.
— 1 earlier story on JK Lakshmi Cement Ltd. →What's new with JK Lakshmi Cement Ltd.
- Durg expansion capex hiked to ₹4,000 cr, commissioning delayed to end-FY28.
- Northeast capacity target scaled back to 1-1.25 MTPA.
- Q4 margin compression with EBITDA/ton at ₹730; pet coke +40%, coal +30%.
Why this matters for JK Lakshmi Cement Ltd.
The capex overrun and delay signal execution challenges in the company's key growth project. Combined with severe margin compression from input cost inflation and limited pricing power, near-term earnings face significant headwinds.
What we're watching
- Ability to pass through cost increases over the next two quarters.
- Progress on Durg plant construction for any further delays.
- Impact of lower Northeast capacity on volume growth targets.
The full read
JK Lakshmi Cement's concall delivered a triple blow: the Durg expansion capex jumped a third to ₹4,000 cr, the plant's start was pushed to end-FY28, and the Northeast capacity target was cut. Meanwhile, Q4 EBITDA/ton cratered to ₹730 against a usual ₹1,000 as pet coke and coal prices surged 40% and 30% respectively. The company couldn't fully pass through costs. The call underscores growing pressure on cement margins and a strategic plan that is both more expensive and slower to deliver.