JK Lakshmi Cement (JKLC IN) – Q1FY27 Result Update – NSR recovers; cost pressures persist – BUY
Published on 06 Aug 2026
JK Lakshmi Cement (JKLC) reported an inline operating performance in Q1FY27, with healthy volume growth of 8% YoY and a sharp 8.5% QoQ improvement in blended NSR driven by better pricing in non-trade segment across key markets and geo-mix optimization, with ~90% of sales concentrated in core markets. The stronger NSR, along with healthy volume growth, largely offset the sharp increase in input costs arising from higher imported fuel prices, elevated raw material costs and increased packaging expenses. Consequently, EBITDA/t stood at INR719 (PLe: INR750), as benefits from lower lead distance, higher RE usage and operating efficiencies were partly offset by fuel cost inflation. Mgmt. guided for higher fuel cost in Q2FY27 as ME crisis continues affecting pet coke and packaging costs as well. . The stock is trading at EV of 8.6x FY28E EBITDA. Maintain ‘BUY’ with revised TP of INR714 (earlier INR765) valuing at same 10x EV of Mar’28E EBITDA.
