JSW Cement Ltd Q4 FY26 Earnings Call: Guides Mid-to-High Teens Volume Growth, Targets Additional Rs. 100/Tonne Cost Savings

JSW Cement Ltd held its Q4 FY26 earnings call on May 18, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Revenue and Profitability Surge on Operational Leverage

• Rs.1,895 Cr revenuein Q4 FY2025-2026, up11% YoY, driven by cement volume growth of 12% and improved realizations.
• Operating EBITDA of Rs.365 Crjumped46% YoY, with margin expanding460 bpsto19.3%; adjusted EBITDA (excluding Rs.13.5 Cr forex impact) reached Rs.378 Cr (Rs.950/tonne).
• EBITDA per tonne of Rs.916in Q4 FY26, a36% YoYimprovement, reflecting cost-saving initiatives and better trade mix (51% vs 47% in Q3 FY26).
• Full-year FY25-26 revenue rose 12%toRs.6,512 Cr, with operating EBITDA ofRs.1,240 Cr(+44%) and adjusted PAT ofRs.668 Cr.
• Board recommended a dividend of 50 paisa per share(face value Rs.10), subject to shareholder approval.
• One-time deferred tax liability reduction of Rs.211 Cr in Q4 FY26from adopting the new tax regime effective FY26-27.

Record Volumes and a Clear Path to 43 Mt by FY30

• Total sales volume of 3.99 Mtin Q4 FY26, up7% YoY; cement volumes grew12% YoYto 2.35 Mt, GGBS volumes rose5.44%to 1.57 Mt.
• Full FY26 volume of 13.96 Mt, an11% YoYincrease; cement volumes outpaced industry demand growth of 8% in JSW Cement's markets.
• Management guided for mid-to-high teens volume growthin FY 2026-2027 (excluding the North plant), with GGBS volume reiterated at ~7 Mt vs 6.5 Mt in FY25-26.
• Capacity target of 46 MTPA grinding and 13.04 MTPA clinkerreaffirmed; management reiterated "43 million tonnes by FY 2029-2030" as the broader capacity horizon.
• Clinker-to-cement factor remained industry-low at 51%in Q4 FY26, underscoring the efficiency of the slag-blending model.
• Lead distance increaseddue to rerouting from Dolvi unit supply issues, partially offsetting logistics gains.

Structured Cost Program Delivering Rs.100+/tonne Savings

• More than 50% of targeted cost savingsrealized as of FY25-26; management targets an additional~Rs.100/tonne in FY26-27and a further~Rs.75/tonne in FY27-28.
• Green energy trust share rising from 24% to 60-63% in FY27, contributing ~Rs.70/tonnein power cost savings; logistics savings targeted at ~Rs.36/tonneand premiumization at ~Rs.4/tonne.
• Rs.23 Cr Nagaur expensein Q4 FY26 (non-capitalized marketing and manpower) impacted EBITDA; management termed it recurring every 2-3 years for hoarding and branding.
• Tax rate to be 25% from FY26-27onwards under the new tax regime, providing a structural tailwind to net margins.
• GGBS slag pricing governed by a five-year contract with JSW Steel(started Oct 2024), with price discovery every 2.5 years; management sees no near-term spike despite steel price rise.
• West Asia crisis raised packing bag, imported fuel, and diesel costs, partially offsetting the savings momentum.

Nagaur Online, UAE Delayed, Punjab Replaced

• Nagaur integrated plant (3.3 Mt clinker + 2.5 Mt grinding)achieved commercial operations on30 March 2026; first full month completed. A further 1 Mt grinding and waste heat recovery unit to commission in FY26-27.
• Board approved an additional 2.5 Mt grinding capacity at Nagaur(total 6 MTPA), with an estimated investment ofRs.430 Crand commissioning inQ4 FY27-28.
• Rajasthan plant incentives expected in FY26-27: Rs.50 Cr capital subsidy from the government plus electricity duty waiver flowing through revenue.
• UAE grinding unit delayed ~1 month due to the war; now expected operational byApril 2027 (early FY27-28)rather than end-FY27. JV clinker unit will supply ~1.5 Mt to this unit.
• Punjab plant delayed indefinitelyas environmental clearance stalled due to upcoming state elections (Feb 2027); replaced by the Rajasthan 2.5 Mt unit at lower capex and one year earlier timeline.
• Company holds >600 Mt of limestone reservesacross four blocks with approvals for three lines of 10,000 TPD each; dealer network in North at ~1,000 dealers (25% exclusive, 75% multi-brand).

Soft April, but Mid-May Recovery Expected

• April FY26-27 demand softdue to inflationary pressures from the Middle East war, labour shortages, and state elections in Tamil Nadu, Kerala, and Bengal; management expects normalization from mid-May.
• Full-year FY26-27 demand expected to track GDP growth, with management citing "industry demand in JSW Cement's markets grew 8% YoY in Q4 FY26" as a baseline.
• Pollution-related RMC shutdowns fully resolved: commercial and dedicated plants in Mumbai and Pune (closed late March through late April) are now operational with no residual issues.
• West Asia crisis remains the key near-term risk, impacting packing bag availability, imported fuel costs, and petrol/diesel inflation — a headwind for demand and margins.
• Dolvi clinker supply locked at pre-war fixed pricesthrough December FY26-27, and a Japanese clinker source was negotiated pre-war, mitigating some input cost uncertainty.
• GGBS volumes in Q4 FY26 declined ~5% YoYdue to slag availability constraints at Dolvi (~1.2 lakh tonnes impact) and pollution-related RMC closures in Jan-Feb, though recovery occurred in March.

Disciplined Capex Pipeline with Manageable Debt

• Net debt of Rs.3,635 Cras of 31 March 2026; total capex for FY25-26 wasRs.1,962 Cr(incl. maintenance capex of Rs.506 Cr), in line with guidance.
• Capex guidance of ~Rs.2,300 Cr for FY26-27and~Rs.2,200 Cr for FY27-28, reflecting continued investment in Nagaur expansion and the UAE grinding unit.
• Total Nagaur project cost revised to ~Rs.3,500 Cr(including the additional 1 Mt grinding and the new Rs.430 Cr for the 2.5 Mt line), with cumulative spend of ~Rs.2,400 Cr to date.
• Full-year FY25-26 GGBS realization of Rs.3,683/tonneandgrey cement realization of Rs.4,667/tonne; Q4 cement realization improved 4.8% QoQ to Rs.4,673/tonne.
• Clinker production in India (Nandyal & Shiva) at 3.72 Mtfor FY25-26; UAE clinker JV sold 2.6 Mt (2 Mt locally, 0.6 Mt to India) at >100% utilization.
• Rs.23 Cr of Nagaur promotion costs expensed (non-capitalized)in Q4 FY26 per accounting policy, with no revenue contribution from the plant in the quarter.