JKLAKSHMI - JK Lakshmi Cem.

📊 NSE: JKLAKSHMI 🏢 Cement - North India 📅 Last Updated: 12/14/2025 8:40

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations saw a reduction in FY2025 due to lower cement demand, reflected in the debtors turnover ratio increasing from 105 to 158. However, Net Profit before Tax for the six months ended September 30, 2025, rose to INR 311.27 Cr compared to INR 63.77 Cr in the previous restated period, representing a 388% increase.

Geographic Revenue Split

Not specifically disclosed in percentages, but the company notes regional demand disparities and seasonal fluctuations as key risks affecting sales volumes across its operational zones.

Profitability Margins

The PBILDT margin contracted to 13.96% in FY2025 from 15.42% in FY2024. This 1.46% margin compression was driven by rising input costs and lower pricing power. Net Profit for Q2 FY2026 was reported at INR 82.33 Cr.

EBITDA Margin

EBITDA margin stood at 13.96% for FY2025. Core profitability is sensitive to EBITDA per tonne; maintaining levels above INR 1,200 is a target for credit rating upgrades, while falling below INR 700 would trigger a downgrade.

Capital Expenditure

The company is undertaking debt-funded capital expenditure plans, contributing to an increase in overall gearing to 0.87x as of March 31, 2025. It expects to generate Gross Cash Accruals (GCA) of INR 700-900 Cr in the medium term to support these plans.

Credit Rating & Borrowing

CRISIL and CareEdge maintain a 'Stable' outlook. Interest coverage moderated to 4.77x in FY2025 from 6.99x in FY2024. Finance costs for the six months ended September 30, 2025, were INR 102.76 Cr.

⚙️ Operational Drivers

Raw Materials

Key raw materials include limestone, gypsum, and energy inputs like coal and petcoke. Energy and fuel costs are highly intensive, though specific percentage splits per material are not disclosed.

Import Sources

Not specifically disclosed, but the company monitors global fluctuations in energy and foreign exchange rates for imported fuel components.

Capacity Expansion

The company is pursuing a 'Composite Scheme of Amalgamation & Arrangement' to streamline operations and is engaged in ongoing debt-funded capacity expansion to improve its market position.

Raw Material Costs

Raw material and energy costs pose challenges to margin stability. The company uses an enterprise-wide risk framework to monitor these costs, which contributed to the PBILDT margin decline to 13.96%.

Manufacturing Efficiency

The company targets an EBITDA per tonne above INR 1,200 for improved business risk profiling. Current efficiency is supported by a 47% utilization of fund-based working capital limits.

Logistics & Distribution

Logistics costs are identified as a key challenge to margin stability, particularly due to the energy-intensive nature of distribution and regional demand disparities.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is targeted through the 'Composite Scheme of Amalgamation & Arrangement', capacity expansion funded by term debt, and a focus on improving market share. The company also aims for premiumization to drive EBITDA per tonne above INR 1,200.

Products & Services

Cement bags and related building materials.

Brand Portfolio

JK Lakshmi Cement.

New Products/Services

Not specifically disclosed in the provided documents.

Market Expansion

The company is focusing on improving its market position in its existing operating zones (Eastern and Northern) through capacity additions.

Market Share & Ranking

Not specifically ranked, but identified as a flagship company of the JK Organization with a 'healthy market position'.

Strategic Alliances

The company has five subsidiaries, including Udaipur Cement Works Limited, and associates that contributed INR 5.34 Cr to profit in the six months ended September 2025.

🌍 External Factors

Industry Trends

The industry is shifting toward decarbonization; JKLC has committed to RE100 and GCCA frameworks with a 2047 net-zero target. Near-term trends show pricing pressure due to regional oversupply.

Competitive Landscape

The industry faces intense competition and regional demand-supply imbalances that affect pricing power.

Competitive Moat

Moat is built on being part of the established JK Group, extensive promoter experience, and a strong distribution network. Sustainability is reinforced by healthy liquidity (INR 599 Cr) and a stable debt service coverage ratio of 2.32x.

Macro Economic Sensitivity

Highly sensitive to GDP growth and infrastructure investments. A reduction in government capital expenditure directly impacts sales volumes.

Consumer Behavior

Shifting demand dynamics and evolving customer expectations require managing dealer loyalty and channel profitability.

Geopolitical Risks

Fluctuations in global fuel prices (coal/petcoke) due to geopolitical tensions impact power and fuel costs.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to environmental violations risks and industrial mishaps regulations. Compliance is managed via the 'Compliance Manager' tool.

Environmental Compliance

The company is exposed to transition risks like carbon pricing. It has charted a path to net-zero by 2047 and maintains a nil LTIFR for employees.

Taxation Policy Impact

The company faces risks from pending litigations and legacy tax liabilities. Income tax payments (net) for the six months ended September 2025 were INR 72.19 Cr.

Legal Contingencies

The company notes pending litigations and regulatory inquiries as risks that could result in financial exposure, though specific case values in INR were not detailed in the provided summary.

⚠️ Risk Analysis

Key Uncertainties

Key risks include input cost volatility (energy/logistics), interest rate fluctuations, and potential delays in receivables from public sector contracts.