JSW Cement shares fall 1.2% despite 33% revenue gain

JSW Cement said consolidated revenue rose 33% year on year to 1,912 crore rupees in the quarter ended Sept. 30, according to an earnings call transcript published Oct. 28 by Investing Australia.

Investing Australia quoted JSW Cement shares 1.2% lower at $115.25, compared with a previous close of $116.65, as operating EBITDA rose 4% to 278 crore rupees in Q2 FY 2027.

The transcript did not include consensus estimates, limiting any direct comparison with analyst forecasts. A crore is an Indian numbering unit equal to 10 million; JSW Cement reported profit after tax of about 77 crore rupees and profit before tax of 101 crore rupees.

Narinder Singh Kahlon, chief financial officer, said on the call: “Consolidated revenue was INR 1,912 crores. That is an increase of 33% year-on-year and 0.8% quarter-on-quarter, despite this being a monsoon quarter.”

Volumes were the main driver. Total shipments rose 26% year on year to 3.93 million tons, cement volumes increased 40% to 2.29 million metric tons, and GGBS volumes rose 7%. GGBS, or ground granulated blast-furnace slag, is used in cement and concrete applications.

Chief Executive Officer Nilesh Narwekar pointed to a difficult backdrop for the period. “Quarter 2 FY 2027 has seen a challenging external environment marked by geopolitical uncertainties arising from the ongoing West Asia crisis and weaker monsoon, which has impacted the broader operating environment,” he said.

The North region was a focus of management’s update. JSW Cement said its Nagaur facility reached 75% utilization and became EBITDA positive during the quarter, helped by clinker sales and early operational gains. “Happy to announce that at Nagaur, we have achieved EBITDA breakeven in quarter 2,” Narwekar said.

Management kept full-year guidance for cement volume growth in the high teens and GGBS growth in the high single digits. It said North-region EBITDA per ton should improve to about 650 rupees to 700 rupees in the fourth quarter, compared with near breakeven in Q2, supported by higher utilization and cost-saving systems.

Cost pressure remains the main counterweight. JSW Cement said fuel costs are expected to rise to about 2.10 rupees per Mcal in the second half from 1.84 rupees in Q2, while management expects higher green power usage and price increases seen in September and October to help offset that increase.

Leverage is another issue for investors. Net debt stood at 4,287 crore rupees, with net debt to EBITDA at 3.2 times, above the company’s target of below 3.0 times. Cement realizations fell 3% sequentially, which management attributed mainly to regional mix rather than aggressive discounting.

JSW Cement reported capital expenditure of 820 crore rupees in the first half of FY 2027 on a cash outflow basis. The company kept CapEx guidance at 2,300 crore rupees for FY 2027 and 2,000 crore rupees for FY 2028, and said it would need about 7,500 crore rupees of additional spending to reach 43.5 million tons of capacity.

Source: Earnings call transcript, Investing Australia, Oct. 28, 2026