JSW Cement shares in focus after Q2 results, shareholder lock-in ending

JSW Cement Ltd. reported an improvement in performance for the September quarter of financial year 2026, driven by operating leverage and growth that outpaced the industry.

Raw material costs declined, aided by a reduction in slag purchases from third-party suppliers during the first quarter of FY26.

However, margins moderated sequentially, primarily due to a decline in realisations.

The company's consolidated revenue rose 17.4% year-on-year to ₹1,436.43 crore in the second quarter of FY26, compared to ₹1,223.71 crore in the same period last year.

Adjusted EBITDA jumped 114% to ₹267.52 crore from ₹162 crore in Q2 FY25. In the base quarter, JSW Cement had incurred a fair value loss from financial instruments amounting to ₹36.75 crore, which has been adjusted for in the comparison.

Sales volumes rose 15% to 3.11 million tonnes from 2.71 million tonnes in Q2 FY25. Gross margins expanded to 77.8% from 73.1% a year ago.

However, margins moderated sequentially due to lower realisations. The EBITDA margin stood at 18.62%, higher than 13.2% in Q2 FY25 but lower than 20.68% recorded in the previous quarter.

Employee benefit expenses declined 5% to ₹84.2 crore from ₹88.6 crore, while finance costs fell 8% to ₹100 crore from ₹109.3 crore last year.

The company reported a net profit of ₹75.36 crore, compared with a net loss of ₹75.82 crore in the year-ago period.

Net debt as of September 30, 2025, stood at ₹3,231 crore, compared to ₹4,566 crore on June 30, 2025, primarily due to the receipt of proceeds from its initial public offering (IPO).

On capex front

On the capital expenditure front, the company's Nagaur integrated unit (IU), with a capacity of 3.5 million tonnes per annum (mtpa) supported by 3.3 mtpa of clinker, remains on track for commissioning by early fourth quarter FY26.

The new facility will help JSW Cement diversify and strengthen its presence in northern markets.

In the longer term, the company aims to establish a pan-India presence with a total grinding capacity of around 41.85 mtpa, compared to 21.6 mtpa currently. Its medium-term goal is to reach approximately 34 mtpa by calendar year 2028.

Shareholder lock-in ends

According to Nuvama Alternative & Quantitative Research, about 3.67 crore shares of JSW Cement will become eligible for trading

as the three-month shareholder lock-in period ends. This represents around 3% of the company's outstanding equity.

Shares of JSW Cement currently trade below their IPO issue price of ₹147 per share, closing at ₹128, with a market capitalisation of ₹17,440 crore.

On Friday, the stock hit a new post-listing low of ₹125.07.