JK Cement (JKCE IN) – Q1FY27 Result Update – Growth outlook intact despite near-term cost headwinds – ACCUMULATE
Published on 21 Jul 2026
JK Cement (JKCE) reported inline operating performance in Q1FY27, driven by robust grey cement volume growth of 18% YoY, supported by ramp-up of recently commissioned capacities in Bihar and market share gains in Central India. Blended NSR improved 6.8% QoQ, led by higher grey cement prices and improved white cement and putty realizations following lower imports from UAE due to disruptions. Cost performance remained under pressure, with higher raw material, maintenance and other operating costs outweighing the benefit of a better fuel mix and stable freight costs. Resultant, JKCE reported cons. blended EBITDA/t of INR980 (PLe: INR977). Mgmt. expects costs to increase by ~INR150/t QoQ in Q2FY27, primarily due to higher fuel and diesel costs, while cement prices have remained largely stable so far. We expect JKCE to deliver EBITDA/volume CAGR of 24%/14% over FY26-28E. The stock is trading at EV of 13.4x FY28E EBITDA. Maintain ‘Accumulate’ with revised TP of INR6,205 (earlier INR6,227) valuing at 15x EV of Mar’28E EBITDA.
