Target: ₹7,000
CMP: ₹5,311.30
JK Cement’s Q4FY26 consolidated revenue reached ₹3,887.5 crore, marking an 8.6% increase year on year, while EBITDA stood at ₹682.5 crore, reflecting a decline of 10.8%. These figures fall short of the CIE estimates of ₹4,010.4 crore for revenue and ₹690.1 crore for EBITDA.
The company’s management has projected a capex for FY27E between ₹3,000 crore and ₹4,000 crore, followed by ₹1,500 crore to ₹2,000 crore in FY28E. This investment underscores JK Cement’s ongoing commitment to capacity expansion and operational enhancements. The company anticipates robust double-digit growth in grey cement volumes for FY27E.
Looking ahead, management indicated that profitability levels in Q1FY27 are expected to align closely with those of Q4FY26. However, margins in Q2FY27 may be pressured if cement price increases do not fully counterbalance anticipated rises in diesel costs. The expected increase in fuel prices is estimated at ₹150-200 per tonne, though the management noted that fuel orders are secured until September.
To mitigate rising input costs, particularly from a sharp surge in chemical prices, management has raised the prices of white cement and wall putty. Nonetheless, passing on additional diesel-related cost inflation remains uncertain.
Despite these challenges, the firm maintains a Buy rating on JK Cement and has revised its target price to ₹7,000 per share. The forecast anticipates EBITDA growth at a compound annual growth rate (CAGR) of 16.8% over FY26-29E, which is expected to be fueled by strong volume growth and improved realizations. The target price is derived by applying an EV/CE multiple of 3.5x to FY28E estimates.
Published on May 26, 2026
