JSW Cement (JSWCEMEN IN) – Q4FY26 Result Update – Strong Q4; execution & growth remain on track – ACCUMULATE
Published on 22 May 2026
JSWCEMEN’s long-term growth outlook remains strong, supported by rising acceptance of GGBS across infrastructure and RMC markets, ongoing cost optimisation initiatives and timely execution of expansion projects. Mgmt. announced 2.5mtpa expansion at Nagaur as its Punjab project is expecting EC delays. While near-term cost pressures from imported fuel, packaging and diesel persist, mgmt. expects improving demand and pricing recovery to provide mitigation. Further, >50% of targeted cost savings have already been achieved, with an additional ~INR100/t savings targeted in FY27 through higher RE share, logistics optimisation and premiumisation. Incremental GU at Nagaur would support incremental volumes from North India and sustained market share gains over the medium term, though debt levels amid aggressive expansion remain monitorable. We tweak our EBITDA estimates by -1/+1% and expect it to deliver EBITDA/volume CAGR of 25%/18% over FY26-28E. The stock is trading at EV of 13.1x/11.8x FY27/28E EBITDA. Maintain ‘Accumulate’ with TP of Rs142 valuing at same 13x EV of Mar’28E EBITDA.
