JK Lakshmi Cement Q2 FY27 profit crashes 74% to ₹21 crore on fuel cost surge
Synopsis
JK Lakshmi Cement's net profit collapsed 74% to just ₹21 crore in Q2 FY27 — even as volumes and revenue grew — because surging fuel costs gutted margins. With net debt nearly doubling in six months to fund expansion and the stock down 40% this year, the company is in a classic growth-versus-profitability squeeze heading into FY28.
Key Takeaways
JK Lakshmi Cement reported a 74.1% year-on-year drop in net profit to ₹21 crore in Q2 FY27 (quarter ended 30 September 2026 ).
Revenue from operations rose 5.5% to ₹1,617 crore ; cement volumes grew 5% to 29.83 lakh tonnes .
EBITDA fell 25.5% to ₹155 crore , with operating margin contracting to 10% from 14% a year ago.
Fuel costs rose to ₹1.82 per kilocalorie from ₹1.54 per kilocalorie , driving margin pressure.
Net debt nearly doubled to ₹2,027 crore by 30 September 2026 , fuelled by expansion capex at Durg and Madhubani .
The stock has fallen nearly 40% in 2026 , even as it closed 1.5% higher on the results day.
JK Lakshmi Cement reported a steep fall in net profit for the second quarter of FY27, with earnings tumbling 74.1% year-on-year to ₹21 crore for the quarter ended 30 September 2026, down from ₹81 crore in Q2 FY26. Rising fuel costs and compressed operating margins drove the decline, even as revenue and cement volumes grew during the period.
Revenue and Volume Growth
Revenue from operations rose 5.5% year-on-year to ₹1,617 crore in the July–September 2026 quarter, compared with ₹1,532 crore a year earlier. Cement sales volumes climbed 5% to 29.83 lakh tonnes from 28.43 lakh tonnes in the same period last year, indicating steady demand traction in the company's key markets.
Margin Pressure and Operating Performance
Despite the top-line improvement, operating performance came under significant strain. EBITDA fell 25.5% year-on-year to ₹155 crore from ₹208 crore, while the operating margin contracted sharply to 10% from 14% in Q2 FY26. On a per-tonne basis, EBITDA declined 29% to ₹517 from ₹732 a year ago.
The company attributed the margin squeeze primarily to elevated energy expenses. Fuel costs rose to ₹1.82 per kilocalorie during the quarter, up from ₹1.54 per kilocalorie in the year-ago period. Average cement sales realisations remained broadly stable at ₹4,885 per tonne, compared with ₹4,895 per tonne previously, indicating limited pricing power to offset cost headwinds. Capacity utilisation stood at 62%, slightly lower than the 65% recorded in Q2 FY26.
Rising Debt and Capex Plans
JK Lakshmi Cement's net debt climbed to ₹2,027 crore as of 30 September 2026, up sharply from ₹1,266 crore at the end of March 2026. The increase was driven by ongoing capital expenditure on expansion projects at Durg and Madhubani. These projects form part of the company's strategic plan to raise total cement production capacity to 25.1 million tonnes per annum by FY30.
Stock Performance
Shares of JK Lakshmi Cement ended Wednesday's trading session 1.5% higher, suggesting the market had partially priced in the weak quarterly print. However, the stock has declined nearly 40% in the calendar year so far, reflecting persistent investor concern over margin compression and rising debt levels in the sector.
The road ahead for the company hinges on whether fuel costs moderate and whether capacity additions translate into improved utilisation and pricing leverage by FY28.
Point of View
But if fuel inflation persists into FY28, that bet gets more expensive to service. The 40% stock decline this year is not noise — it is the market pricing in exactly this risk.
NationPress
4 Nov 2026
Frequently Asked Questions
What was JK Lakshmi Cement's net profit in Q2 FY27?
JK Lakshmi Cement posted a net profit of ₹21 crore for Q2 FY27, the quarter ended 30 September 2026 — a 74.1% decline from ₹81 crore in Q2 FY26. The sharp fall was driven by higher fuel costs and compressed operating margins despite growth in revenue and volumes.
Why did JK Lakshmi Cement's profits fall so sharply?
The primary reason was a surge in fuel costs, which rose to ₹1.82 per kilocalorie from ₹1.54 per kilocalorie a year earlier. This squeezed EBITDA margins to 10% from 14%, even though revenue grew 5.5% and cement volumes increased 5% over the same period.
How did JK Lakshmi Cement's revenue perform in Q2 FY27?
Revenue from operations grew 5.5% year-on-year to ₹1,617 crore in Q2 FY27, up from ₹1,532 crore in Q2 FY26. Cement sales volumes also rose 5% to 29.83 lakh tonnes, indicating demand-side resilience even as margins were squeezed.
What is driving the rise in JK Lakshmi Cement's net debt?
Net debt rose to ₹2,027 crore by 30 September 2026 from ₹1,266 crore at end-March 2026, primarily due to ongoing capital expenditure on expansion projects at Durg and Madhubani. These projects are part of the company's plan to reach a total capacity of 25.1 million tonnes per annum by FY30.
How has JK Lakshmi Cement's stock performed in 2026?
The stock has declined nearly 40% in 2026, reflecting market concern over sustained margin pressure and rising debt. It did close 1.5% higher on the day Q2 FY27 results were announced, suggesting the weak numbers were partially anticipated by investors.
