JSW Cement Limited Reports 33% Revenue Growth in Q2 FY27

JSW Cement Limited reported consolidated revenue of INR 1,912 crore for Q2 FY27, up 33% year-on-year, as total volumes rose 26% to 3.93 million tonnes. Operating EBITDA increased 4% to INR 278 crore despite higher fuel and packing costs, while the Nagaur facility in North India reached EBITDA breakeven.

How did JSW Cement perform in Q2 FY27?

JSW Cement delivered higher revenue and volumes in the quarter ended September 30, 2026, despite a weaker monsoon and geopolitical uncertainty linked to the West Asia crisis. Consolidated revenue rose 33% year-on-year and 0.8% sequentially to INR 1,912 crore. The company said the growth came during a monsoon quarter, when construction activity can face seasonal disruption.

Total sales volume increased 26% year-on-year to 3.93 million tonnes. Cement volumes were 2.29 million metric tonnes, up almost 40% from a year earlier. The company described the volume increase as one of the highest in the industry during the quarter. Revenue growth outpaced volume growth, supported by improved year-on-year realisations in cement and ground granulated blast-furnace slag, or GGBS.

Consolidated operating EBITDA increased 4% year-on-year to INR 278 crore, while operating EBITDA per tonne stood at INR 708. Total EBITDA, including other income, was INR 295 crore. Profit before tax was INR 101 crore, including a positive contribution of nearly INR 20 crore from Fujairah, and profit after tax was about INR 77 crore.

What drove JSW Cement's sales volume and revenue growth?

JSW Cement's volume growth was supported by robust cement demand, according to management, even as the external operating environment remained challenging. Chief Executive Officer Nilesh Narwekar said underlying Indian economic conditions remained resilient, with healthy GDP growth, government capital expenditure and infrastructure activity supporting cement demand.

The company said cement demand during the quarter supported price increases across its markets in September and October. Management expects these price increases to sustain and support margins while fuel and other input costs remain elevated. This assessment is based on the company's comments during the earnings call and does not provide a quantified outlook for future price movements or earnings.

Cement realisation was INR 4,781 per tonne in Q2 FY27, up 3% year-on-year but down 3% quarter-on-quarter. GGBS realisation was INR 3,749 per tonne. The year-on-year improvement in realisations contributed to revenue growth, but sequential softness in cement realisation and higher input costs limited the expansion in operating EBITDA.

Why did EBITDA grow slower than JSW Cement's revenue?

JSW Cement's operating EBITDA increased more slowly than revenue because fuel and packing costs rose year-on-year. Revenue advanced 33% and total volume increased 26%, but operating EBITDA rose 4%, resulting in operating EBITDA of INR 708 per tonne for the quarter.

Management stated that both cement and GGBS realisations improved from a year earlier. However, the benefit was partly offset by cost pressures. Fuel is a significant input for cement producers, while packing costs affect the distribution of bagged cement. The company said price increases in September and October could support margins if they continue while input costs remain elevated.

On a like-for-like basis excluding the North region, JSW Cement reported 14% year-on-year revenue growth in Q1 and Q2, while operating EBITDA increased 3% to INR 275 crore. Operating EBITDA per tonne for this comparison was INR 821. The figures show that the North business continued to influence the consolidated margin profile even as its operating performance improved.

What changed in JSW Cement's North India operations?

JSW Cement achieved EBITDA breakeven at Nagaur in Q2 FY27, giving the North region a slightly positive EBITDA contribution during the quarter. Management said plant utilisation in the region increased to 75%, reflecting higher operating activity at the facility.

The company also commissioned an additional grinding capacity of 1 million tonnes per annum at Nagaur in October. Management said this capacity would strengthen its ability to serve the North market and that costs would continue to reduce over the coming quarters. No specific cost-saving figure or earnings contribution from the new capacity was disclosed.

JSW Cement is also expanding its dealer network while focusing on product quality, service levels and cost reduction initiatives. These measures are relevant to the North business because a growing regional distribution network can support the utilisation of newly commissioned grinding capacity. The earnings call did not disclose the number of dealers added or the planned scale of the network expansion.

What does the quarter mean for investors and the cement sector?

JSW Cement's Q2 performance shows strong sales momentum alongside continued pressure on profitability from costs. The 26% increase in total volume and 33% rise in revenue indicate that demand and higher year-on-year realisations supported growth during a seasonally weaker monsoon period. But the 4% rise in operating EBITDA highlights the effect of fuel and packing cost inflation.

For investors, the move to EBITDA breakeven in the North is an important operational development because the region had previously affected the company's comparable profitability. Excluding North, operating EBITDA was INR 275 crore and EBITDA per tonne was INR 821. The positive contribution from Fujairah, of nearly INR 20 crore at the profit-before-tax level, also supported quarterly profitability.

The wider cement sector is being supported by infrastructure execution and construction activity, according to the company. At the same time, the quarter reflected external uncertainties, including the West Asia crisis and weaker monsoon conditions. JSW Cement's ability to retain higher selling prices while managing fuel, packing and other input costs remains central to its margin performance.

Conclusion

JSW Cement reported a quarter of strong volume-led revenue growth, with consolidated revenue reaching INR 1,912 crore and total volume rising to 3.93 million tonnes. Higher year-on-year cement and GGBS realisations supported sales, while elevated fuel and packing costs moderated EBITDA growth. The Nagaur plant's EBITDA breakeven marked progress in the North region.

The next key developments are the ramp-up of the additional 1 million tonnes per annum grinding capacity commissioned at Nagaur in October, changes in regional cement prices, and the company's stated efforts to reduce costs. Management has also linked its demand outlook for the balance of FY27 to continued infrastructure execution and construction activity.