💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 reached INR 2,996.3 Cr, representing a 12.2% YoY growth compared to INR 2,671.0 Cr in H1 FY25. Q2 FY26 revenue grew 17.4% YoY to INR 1,436.4 Cr. However, FY25 annual revenue saw a 3% decline to INR 6,643 Cr from INR 6,855 Cr in FY24 due to pricing pressures.

Geographic Revenue Split

Capacity is distributed across South India (11.0 MTPA or 51%), East India (6.1 MTPA or 28%), and West India (4.5 MTPA or 21%). The company is expanding into the North/Central region with a new integrated unit in Rajasthan to diversify its revenue base.

Profitability Margins

Adjusted Profit After Tax for H1 FY26 was INR 175.3 Cr, a significant improvement from a loss of INR 28.8 Cr in H1 FY25. Reported PAT for H1 FY26 was a loss of INR 1,291.1 Cr due to a one-time non-cash fair value expense of INR 1,466.4 Cr related to CCPS conversion. FY25 PAT margin was -4.8% (INR -318 Cr loss).

EBITDA Margin

Operating EBITDA margin improved to 19.7% in H1 FY26 (INR 590.2 Cr) from 14.8% in H1 FY25 (INR 395.9 Cr). EBITDA per ton increased 49.1% YoY to INR 919 in H1 FY26, driven by lower fuel costs and better operating leverage.

Capital Expenditure

The company has planned a sizeable capital expenditure of INR 6,000-6,500 Cr over fiscals 2026-2028 to increase grinding capacity from 21.6 MTPA to 32 MTPA. This includes greenfield and brownfield projects to enhance geographical reach.

Credit Rating & Borrowing

Ratings were upgraded in October 2025 to 'Crisil AA-/Stable' for long-term and 'Crisil A1+' for short-term facilities. Financial flexibility is bolstered by the INR 1,600 Cr fresh equity from the August 2025 IPO and group support.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Slag (sourced from JSW Steel), Clinker, and Coal. Slag is a primary input for Portland Slag Cement (PSC) and Ground Granulated Blast Furnace Slag (GGBS), which are the company's core sustainable products.

Import Sources

Slag is sourced domestically from JSW Steel plants in Vijayanagar (Karnataka) and Dolvi (Maharashtra). Coal is procured through centralized group arrangements, likely involving international imports for thermal requirements.

Key Suppliers

Primary suppliers are JSW Group entities: JSW Steel Ltd for slag, JSW Energy Ltd for power, and JSW Infrastructure Ltd for port services. This vertical integration ensures supply security and cost efficiencies.

Capacity Expansion

Current installed grinding capacity is 21.6 MTPA as of October 2025. It is expected to reach 24.1 MTPA by Q4 FY26 via the Rajasthan unit and scale to ~32 MTPA by fiscal 2028.

Raw Material Costs

Raw material costs are optimized through co-location with JSW Steel, which minimizes inward logistics for slag. Operating expenses for H1 FY26 were INR 2,406.1 Cr, up 10.2% YoY, trailing revenue growth and indicating improved efficiency.

Manufacturing Efficiency

Manufacturing efficiency is driven by the use of more efficient new units and an increasing share of blended cement. Lead distance for logistics was reduced to 283km in Q2 FY26, down 1.5% YoY, lowering freight costs.

Logistics & Distribution

Logistics costs are a major component; the company uses JSW Infrastructure for port-based movements and benefits from co-location of grinding units with JSW Steel plants to minimize slag transport costs.

📈 Strategic Growth

Expected Growth Rate

12.96%

Growth Strategy

Growth will be achieved by expanding grinding capacity to 32 MTPA by FY28, entering the North and Central Indian markets (Rajasthan integrated unit), and leveraging the 'JSW' brand. The strategy focuses on being the leader in eco-friendly GGBS and PSC cement segments.

Products & Services

Portland Slag Cement (PSC), Ordinary Portland Cement (OPC), Concreel HD (CHD), Ground Granulated Blast Furnace Slag (GGBS), and Composite Cement (CPC).

Brand Portfolio

JSW Cement, Concreel HD (CHD).

New Products/Services

Expansion into the New Energy Vehicle (NEV) space via JSW MG Motor India (35% stake) and B2B e-commerce platforms are group-level diversifications that provide ecosystem support.

Market Expansion

Targeting a Pan-India presence by moving beyond South/East/West strongholds into Central and North India by FY28.

Market Share & Ranking

Identified as one of India's fastest-growing cement manufacturers with a current grinding capacity of 21.6 MTPA.

Strategic Alliances

Joint Venture JSW Cement FZC in the UAE for clinker production (2.31 MTPA capacity) and a commercial arrangement with Bhushan Power and Steel Limited for grinding units.

🌍 External Factors

Industry Trends

The industry is shifting toward green cement; JSW Cement is positioned as a leader in low CO2 emission intensity. The sector is seeing consolidation and aggressive capacity additions by top players.

Competitive Landscape

Competes with major Indian cement players; dynamics are driven by regional supply-demand balances and the ability to manage logistics costs.

Competitive Moat

The primary moat is the 'Group Synergy'—access to low-cost slag from JSW Steel and co-location benefits. This provides a sustainable cost advantage in the PSC and GGBS segments that competitors cannot easily replicate.

Macro Economic Sensitivity

Highly sensitive to infrastructure spending and GDP growth, as cement demand is directly linked to construction activity in roads, railways, and housing.

Consumer Behavior

Increasing adoption of GGBS by RMC players and government agencies for infrastructure projects due to regulatory certifications and sustainability mandates.

Geopolitical Risks

Exposure to international fuel prices (coal) and operations in the UAE (JSW Cement FZC) introduce global commodity and regional geopolitical risks.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to environmental pollution norms for cement plants and regulatory certifications for GGBS usage in public infrastructure like metros and airports.

Environmental Compliance

The company focuses on low CO2 intensity products (GGBS/PSC). Specific ESG compliance costs in INR are not disclosed, but sustainability is a core strategic pillar.

Taxation Policy Impact

Tax expense for H1 FY26 was INR 110.7 Cr on an adjusted basis. The company follows standard Indian corporate tax norms.

⚠️ Risk Analysis

Key Uncertainties

Execution risk associated with the INR 6,500 Cr capacity expansion and the ability to ramp up utilization in new markets like Rajasthan.

Geographic Concentration Risk

Currently 51% of capacity is concentrated in South India (11.0 MTPA), making the company vulnerable to regional price wars or demand slumps in that belt.

Third Party Dependencies

Heavy reliance on JSW Steel for slag; any reduction in steel production would directly impact JSW Cement's raw material security for its blended cement portfolio.

Technology Obsolescence Risk

Low risk in core cement, but the company is proactively investing in R&D for microfine GGBS and digital transformation of its B2B sales platform.

Credit & Counterparty Risk

Receivables of 45-55 days indicate moderate credit risk from institutional clients, though the 'Strong' liquidity profile (INR 935 Cr cash) provides a buffer.