JK Cement Limited Posts ₹4,070.97 Crore Total Income for Q1 FY27 Amid Rising Operational Costs

JK Cement Limited has announced its statement of consolidated unaudited financial results for the first quarter of the fiscal year 2026-27, ended June 30, 2026. The financial results reflect steady top-line growth driven by higher revenue from operations, balancing out structural increases in raw material consumption, logistics, and power overheads compared to the parallel baseline period of the previous fiscal year (Q1 FY26).

Top-Line Momentum and Income Mix

For the quarter ended June 30, 2026, JK Cement registered a total income of ₹4,070.97 crore. This marks an expansion of 19.4% over the ₹3,408.97 crore recorded in the corresponding quarter of the previous year. Sequentially, the total income advanced by 3.6% from the ₹3,928.79 crore posted in the sequential fourth quarter ended March 31, 2026 (Q4 FY26).

The primary driver was core revenue from operations, which scaled to ₹4,031.72 crore in Q1 FY27, up from ₹3,352.53 crore in Q1 FY26 and ₹3,887.50 crore in Q4 FY26. Other income for the quarter contributed ₹39.25 crore, down slightly from ₹56.44 crore in the previous year's parallel quarter and ₹41.29 crore sequentially.

Rising Expenditures Press Margin Tratios

Total expenses incurred during the quarter under review climbed to ₹3,664.82 crore, showing a sharp rise from the ₹2,919.83 crore spent in Q1 FY26 and a sequential increase from ₹3,485.20 crore in Q4 FY26.

The bank-level industrial expenditures show heavy volume pressure:

Logistics & Supply: Freight and forwarding expenses emerged as the absolute largest cost pool, requiring an outlay of ₹911.32 crore against ₹764.88 crore in Q1 FY26.

Energy Infrastructure: Power and fuel (net) tracking operations accounted for ₹672.98 crore, which is an optimization over the sequential quarter's ₹738.22 crore but up from ₹598.08 crore annually.

Material Sourcing: Cost of materials consumed grew sharply to ₹640.45 crore, compared to ₹472.91 crore in the parallel prior period.

Operational Overheads: Employee benefits expenses stood at ₹287.66 crore, finance costs required ₹114.10 crore, and depreciation/amortization pulled in ₹166.74 crore.

Purchases of traded goods stood at ₹89.26 crore, changes in inventories of finished products and work-in-progress accounted for a positive charge of ₹51.24 crore, and other ancillary expenses accounted for ₹731.07 crore. Consequently, the operating margin for the period stood at 16.07%, compressing from 20.51% in Q1 FY26 and 17.56% in Q4 FY26.

Profitability and Earnings Metrics

Profit before exceptional items and tax for Q1 FY27 stood at ₹406.15 crore, down from ₹489.14 crore in Q1 FY26 and ₹443.59 crore in Q4 FY26. There were no exceptional losses reported for the quarter, leaving the profit before tax at ₹406.15 crore.

Total tax expenses reached ₹131.53 crore, driven by a current tax outlay of ₹72.70 crore and deferred tax provisions of ₹58.83 crore. This resulted in a consolidated net profit after tax of ₹274.62 crore for the quarter, compared to ₹324.25 crore in Q1 FY26 and ₹330.88 crore in Q4 FY26.

Net profit margin for the quarter was 6.75%. Profit attributable to the main equity holders of J.K. Cement Ltd. stood at ₹277.47 crore, while non-controlling interests absorbed a loss of ₹2.85 crore. Accounting for nominal updates in other comprehensive loss pools, the total comprehensive income for the quarter closed at ₹274.61 crore. The bank's basic and diluted earnings per share (EPS) for the non-annualized three-month period stood at ₹35.91, down from ₹41.99 in Q1 FY26 and ₹43.08 in Q4 FY26.

Capital Ratios and Balance Sheet Solvency

JK Cement's capital framework remains structured, with the paid-up equity share capital holding steady at ₹77.27 crore, representing shares with a face value of ₹10 each. The corporate net worth climbed to ₹7,364.92 crore against ₹6,465.55 crore held on June 30, 2025. Securities premium reserves remained fixed at ₹756.80 crore.

Key operational balance sheet ratios include:

Leverage & Debt: Debt-Equity ratio stood at 0.90 times, adjusting slightly from 0.86 times in the sequential quarter. The ratio of total debts to total assets closed at 0.34 times.

Coverage Indicators: Interest Service Coverage Ratio was reported at 6.08 times, while the Debt Service Coverage Ratio stood at 2.35 times. The asset cover ratio for secured non-convertible debentures (NCDs) jumped to 131.66 times.

Liquidity & Working Capital: The current ratio settled at 1.19 times, improving from 1.04 times in the preceding quarter. The ratio of long-term debt to working capital stood at 7.07 times, and the current liability ratio was 0.34 times.

Asset Efficiency: Annualized inventory turnover ratio reached 10.22 times, and the annualized trade receivables turnover ratio accelerated cleanly to 17.23 times. Bad debts to accounts receivable ratio was reported at 0.15%.

Shares of JK Cement Limited was last trading in BSE at Rs. 5388.90 as compared to the previous close of Rs. 5423.95. The total number of shares traded during the day was 1360 in over 270 trades.

The stock hit an intraday high of Rs. 5444.15 and intraday low of 5353.50. The net turnover during the day was Rs. 7334638.00.

Source : Equity Bulls

Keywords

JKCement INE823G01014 Q1FY27 Q1FY2027 ResultUpdate