JSW Cement Q2 FY26: Building Stronger Foundations with Green Growth

JSW Cement Limited, a prominent player within the diversified US$23 billion JSW Group, has reported a robust performance for the second quarter of Fiscal Year 2026 (Q2 FY26), underscoring its strategic focus on sustainable growth and operational efficiency. The company, which recently listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on August 14th, 2025, continues to solidify its position as one of India's fastest-growing cement manufacturers. For Q2 FY26, JSW Cement recorded a significant 17.4% year-on-year increase in revenue from operations, reaching Rs. 1,436.4 crore. This impressive top-line growth was complemented by a substantial 64.2% year-on-year surge in Operating EBITDA, which stood at Rs. 267.5 crore, translating to Rs. 860 per ton. The Profit After Tax (PAT) for the quarter was Rs. 75.4 crore, a notable turnaround from a loss in the prior year period, reflecting strong operational leverage and effective cost management.

The company's performance was driven by healthy volume growth across its product portfolio. Total sales volume increased by 14.9% year-on-year to 3.11 million tons, significantly outpacing the industry growth in its operating regions. Cement volume sold grew by 6.8% year-on-year to 1.64 million tons, while Ground Granulated Blast Furnace Slag (GGBS) volume saw a robust 20.6% year-on-year increase to 1.38 million tons. This growth was achieved despite a 5.2% sequential decline in cement realization, which was offset by stable GGBS realizations and overall volume expansion. The company's strategic decision to maintain GGBS pricing flat aims to drive volume adoption, reinforcing its commitment to market penetration and customer value. The trade mix for cement remained stable at 52%, with premium sales accounting for 58% within the trade segment.

Strategic Expansion and Green Initiatives

JSW Cement is actively pursuing an ambitious capacity expansion program to develop a pan-India presence, targeting a grinding capacity of 41.85 MTPA and clinkerization capacity of 13.04 MTPA. A key milestone achieved this quarter was the commissioning of a 1.0 MTPA state-of-the-art grinding unit in Sambalpur, Odisha, in September 2025. This unit, part of its subsidiary Shiva Cement, is strategically positioned to enhance clinker capacity utilization and cater to demand in Western Odisha and parts of Jharkhand. The company is also making significant progress on its Nagaur Integrated Unit in Rajasthan, marking its entry into the North region. Phase 1, comprising 3.30 MTPA clinker and 2.50 MTPA grinding capacity, is on track for commissioning in early Q4 FY26, with major construction and equipment deliveries nearing completion. Additionally, the Talwandi Sabo grinding unit in Punjab, a 2.75 MTPA split grinding unit, is advancing through the approval and engineering stages, set to source clinker from Nagaur.

Sustainability remains a core pillar of JSW Cement's strategy. The company prides itself on having the lowest CO2 emission intensity in the cement industry, both in India and globally. To further enhance this, JSW Cement plans to significantly increase its green power usage from the current 21% to 63% of its total requirement by Q1 FY27. Concurrently, the utilization of Alternate Fuel and Raw materials (AFR) is targeted to rise from 12-15% to 18-19%. These initiatives are not only environmentally responsible but also serve as major cost drivers, contributing to the company's goal of achieving Rs. 400 per ton in cost savings, with Rs. 200 per ton already realized.

Financial Health and Outlook

On the financial front, JSW Cement demonstrated disciplined capital allocation. The company's net debt reduced substantially from Rs. 4,566 crore in June to Rs. 3,231 crore by the end of September, reflecting prudent management of its balance sheet. This reduction was facilitated by IPO proceeds and internal accruals, with the company aiming to keep net debt below Rs. 5,000 crore at all times. For the full year FY26, total capex is estimated at around Rs. 2,300 crore, with Rs. 1,300 crore expected in H2 FY26, primarily directed towards its ongoing expansion projects.

Management acknowledged a slight shortfall in H1 volumes due to extended monsoons and GST rate changes but expressed confidence in achieving H2 targets, aiming for mid-teen percentage volume growth over FY25 for the full year FY26. The outlook for H2 remains very positive, with expectations of market recovery from November onwards. The company's proactive approach to cost management, strategic capacity expansions, and unwavering commitment to sustainability position it favorably to capitalize on India's infrastructure-led growth trajectory. JSW Cement's Q2 FY26 performance reflects strategic clarity and disciplined execution, reinforcing investor confidence in its long-term growth prospects.