MUMBAI–JK Lakshmi Cement reported a 74.1% decline in second-quarter net profit on Wednesday, as rising fuel expenses and shrinking operating margins offset gains in revenue and cement sales volumes.
The Indian cement manufacturer posted a net profit of Rs 21 crore for the quarter ended September 30, 2026, compared with Rs 81 crore during the same period a year earlier, according to a stock exchange filing.
Revenue from operations increased 5.5% to Rs 1,617 crore during the July-September quarter, up from Rs 1,532 crore in the corresponding period of the previous fiscal year.
Cement sales volumes also improved, rising 5% to 29.83 lakh tonnes from 28.43 lakh tonnes a year earlier.
Despite the increase in sales, the company’s operating profitability weakened significantly. Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 25.5% to Rs 155 crore, compared with Rs 208 crore in the year-earlier quarter.
Operating margins narrowed to 10% from 14%, reflecting the impact of higher production expenses. EBITDA per tonne fell 29% to Rs 517 from Rs 732 during the same period last year.
The company identified rising energy costs as a major factor behind the decline in profitability. Fuel expenses increased to Rs 1.82 per kilocalorie, compared with Rs 1.54 per kilocalorie in the second quarter of fiscal 2026.
Meanwhile, average cement sales realizations remained relatively unchanged at Rs 4,885 per tonne, slightly below the Rs 4,895 recorded a year earlier.
Capacity utilization declined to 62% during the quarter from 65% in the corresponding period last year.
JK Lakshmi Cement also reported an increase in its debt levels as it continued investing in production capacity expansion.
Net debt climbed to Rs 2,027 crore as of September 30, 2026, compared with Rs 1,266 crore at the end of March 2026.
The increase was primarily linked to capital expenditures on expansion projects at Durg and Madhubani. These investments are part of the company’s broader strategy to increase annual cement production capacity to 25.1 million tonnes by fiscal 2030.
Despite the decline in quarterly earnings, JK Lakshmi Cement shares closed Wednesday’s trading session 1.5% higher.
However, the company’s stock has lost nearly 40% of its value since the beginning of the year. (Source: IANS)
