JK Cement Q2 Results: Profit Rises 6% to ₹169 Crore; Paint Plant Cleared

JK Cement’s consolidated net profit rose 6.3% to ₹169.3 crore in the September quarter as revenue climbed nearly 24% on strong volumes, and its board cleared a ₹130 crore paint plant in Telangana.

The JK Cement Q2 results were approved by the board on Saturday, October 24. Revenue from operations rose 23.65% to ₹3,733.42 crore from ₹3,019.20 crore a year earlier, while consolidated profit rose from ₹159.25 crore.

CNBC-TV18 reported profit at ₹173 crore, up 8% from ₹160.5 crore. That figure refers to profit attributable to shareholders, according to other reports, which may account for the gap with the consolidated headline number.

JK Cement Q2 results: margins under pressure

EBITDA rose 13.5% to ₹507.4 crore from ₹447 crore, according to CNBC-TV18. However, the EBITDA margin narrowed to 13.6% from 14.8% a year ago, as costs grew faster than sales.

Total expenses increased 24.34% to ₹3,515.71 crore, slightly ahead of revenue growth. Total income, including other income, rose 22.84% to ₹3,771.29 crore.

Volumes were the bright spot. Grey cement sales grew 21% to 5.37 million tonnes, while white cement sales rose 13% to 0.49 million tonnes.

On a sequential basis, the quarter was weaker, as is typical for the industry during the monsoon. Revenue fell 7.4% from ₹4,031.72 crore in the April–June quarter, and net profit declined from ₹274.62 crore.

₹130 crore paint plant in Telangana

The board approved a proposal from wholly owned subsidiary JK Maxx Paints to build a water-based paint plant at Raghunadhapalem in Telangana’s Suryapet district. The unit will have an annual capacity of 75,000 kilolitres.

The estimated capex of ₹130 crore will come from the ₹600 crore the board had already approved for the paints business, so no fresh allocation is needed. Commissioning is expected within about 12 months of the start of construction.

The existing plant at Bhiwadi in Rajasthan, with an annual capacity of 73,000 kilolitres, runs at about 60% utilisation and is projected to reach full utilisation by FY28. The Telangana unit would take total paint capacity to roughly 1,48,000 kilolitres a year.

The board also proposed Price Waterhouse Chartered Accountants LLP as statutory auditor for five years from the 2027 AGM, subject to shareholder approval. The incumbent, S.R. Batliboi & Co. LLP, completes its second and final term.

Why it matters for cement demand and the paints push

JK Cement makes both grey and white cement, and its paints business is a bet on adjacent building materials. The Telangana plant would give the paints unit a manufacturing base in southern India, in addition to Bhiwadi.

In July, the company targeted 13–15% volume growth for FY27 and grey cement sales of 22.5–23 million tonnes, backed by capacity additions in Central India. Volumes grew 18% in the April–June quarter, with market share gains in Uttar Pradesh, Madhya Pradesh and Bihar.

Business head Anuj Khandelwal expects demand to “strengthen in the second half of FY27” as activity picks up after the monsoon, CNBC-TV18 reported. Input costs are seen staying elevated in the near term, though cement prices have held up.

Cost pressure is a wider concern for heavy industry, with wholesale inflation rising to 11.39% in September on higher fuel and metal prices. Khandelwal also expects maintenance costs to ease and fuel and diesel costs to possibly soften.

What comes next

JK Cement shares ended nearly flat at ₹4,854 on the NSE on Friday, a day before the results. The stock is down 11.2% so far this year and about 4% over the past month.

Investors will watch whether second-half demand and softer fuel costs help margins recover after the JK Cement Q2 results, and how soon construction begins in Telangana. Details are available on the company’s website, and more company coverage is in our Business News section.