JK Lakshmi Cement (JKLC IN) – Q4FY26 Result Update – NSR recovery lags again; well controlled costs – BUY
Published on 21 May 2026
JKLC remains focused on volume-led growth and improving operational efficiencies through higher RE share and cost optimisation initiatives. However, with no major capacity additions expected in FY27 and the next phase of expansion commissioning towards end-FY28, the company could face capacity constraints if demand improves meaningfully, potentially impacting market share growth. Further, rising input costs from Q1FY27 can put pressure on margins as price hikes taken so far remain insufficient to offset the inflationary impact. At higher prices, JKLC may lose volume growth. Key things to monitor are: a) timely execution of the ongoing expansion at Durg, b) sustained demand recovery and ability to take price hikes, c) step up of capex for Northeast project. We cut our estimates for FY27/28E by 2%/6% on lower pricing/ volume assumption respectively and expect JKLC to deliver EBITDA/volume CAGR of 14%/8% over FY26-28E. The stock is trading at EV of 9.1x/8.6x FY27E/28E EBITDA. Maintain ‘BUY’ with revised TP of Rs765 (earlier Rs751) valuing at same 10x EV of Mar’28E EBITDA as mgmt. has reduced some capex amount.
