JSW Cement Q3 Results: Profit Rebound Sparks 9% Stock Rally

Introduction

JSW Cement shares surged over 9% in intraday trading on Thursday, reaching a two-month high of ₹127 on the National Stock Exchange. The significant rally was driven by the company's robust financial performance in the third quarter of fiscal year 2026, where it posted a strong profit, marking a clear turnaround from a loss in the same period last year. The positive results, coupled with strategic expansion announcements, renewed investor confidence in the stock.

A Decisive Financial Turnaround

The primary catalyst for the stock's upward movement was JSW Cement's return to profitability. For the quarter ended December 31, 2025, the company reported a consolidated net profit of ₹130.6 crore. This is a substantial improvement compared to the consolidated net loss of ₹80.2 crore recorded in Q3 FY25. The turnaround highlights improved operational efficiency and favorable market dynamics.

Revenue from operations also saw healthy growth, increasing by 13.2% year-on-year to ₹1,621.2 crore from ₹1,432.7 crore. This growth was supported by higher sales volumes across its product segments.

Operating Performance Strengthens

On the operational front, JSW Cement demonstrated significant gains. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for the quarter stood at ₹285.1 crore, a robust 32% increase from the previous year. The company's operating EBITDA margin improved to 17.6% from 15.1% in Q3 FY25, which the company attributed primarily to operating leverage.

While year-on-year performance was strong, the company noted that sequential growth was moderated by softer cement prices and a slight increase in raw material costs during the quarter.

Q3 FY26 Financial Highlights

Volume Growth Underpins Results

The company's topline growth was fundamentally supported by a healthy increase in sales volumes. Total volume sold during the quarter climbed 14% year-on-year to 3.56 million tonnes. This increase was broad-based, with cement volumes growing by 7% and sales of Ground Granulated Blast Furnace Slag (GGBS) rising by a substantial 17% year-on-year. The consistent volume growth allowed the company to leverage its operational capacity more effectively, contributing to the improved bottom line.

Strategic Expansion into the Middle East

Adding to the positive sentiment, JSW Cement announced its first major international expansion. The company's board has approved the incorporation of a wholly-owned subsidiary in Fujairah, United Arab Emirates (UAE). This new entity will establish a cement grinding unit with a capacity of 1.65 million tonnes per annum (MTPA). The project is estimated to have a capital expenditure of approximately $19 million, which will be financed through a mix of debt and equity.

Domestic Capacity Expansion on Track

Alongside its international ambitions, JSW Cement confirmed that its domestic expansion projects are proceeding as planned. The first phase of its integrated unit in Nagaur, Rajasthan, which includes 3.30 MTPA of clinker capacity and 2.50 MTPA of grinding capacity, is on schedule for commissioning in the fourth quarter of FY26. Additionally, the company is progressing with regulatory approvals for a proposed 2.75 MTPA split grinding unit in Mansa, Punjab.

Market Reaction and Technical Outlook

The market responded strongly to the positive news. JSW Cement's stock opened with a gap up and saw unusually high trading volumes, indicating strong investor interest. According to technical analysts, the stock has broken out of a 10-week-long congestion zone. A decisive close above the ₹125 level could potentially push the stock towards the ₹140 mark in the near term, with a support zone identified between ₹116 and ₹120.

Conclusion

JSW Cement's third-quarter performance marks a significant inflection point, demonstrating a successful turnaround from loss to profit driven by strong volume growth and operational leverage. The company's clear and ambitious expansion plans, both within India and internationally, provide a visible path for future growth. Investors will now be watching for sustained profitability and the timely execution of its capacity expansion projects.