JK Lakshmi Cement profit plunges as margins contract

JK Lakshmi Cement reported Q2 FY27 profit after tax of ₹21 crore, down 75% year on year, as higher fuel costs and weaker operating profitability pressured the cement maker’s bottom line. Net sales rose 6% year on year to ₹1,617 crore, but declined 15% sequentially from ₹1,905 crore in Q1 FY27. PAT fell 75% despite the annual revenue growth.

The main pressure came from costs and margins. Fuel cost increased to ₹1.82 per K.Cal. in Q2 FY27 from ₹1.54 per K.Cal. a year earlier, while EBITDA per tonne declined 29% year on year to ₹517. The combination indicates that higher operating costs absorbed much of the benefit from increased sales. Cement producers remain sensitive to fuel prices because energy is a direct input into clinker and cement production 🔥.

Net debt also rose to ₹2,027 crore as of 30 September 2026, from ₹1,266 crore on 31 March 2026. The ₹761 crore increase adds to the market’s focus on leverage, cash generation and the funding of capacity or working-capital requirements. For the cement sector 🏗️, the results highlight the effect that cost inflation can have on per-tonne profitability even when revenue expands.

EBITDA per tonne ₹517 is the key operating metric to track in the next update, alongside fuel costs, realisations and sales volumes. Investors will also watch whether net debt stabilises from the September level and whether sequential revenue weakness reverses in the next quarter. Any improvement in energy costs or pricing would directly affect margin recovery, while continued cost pressure would keep earnings visibility constrained.

OI Charts data showed the stock closing at ₹480.30 on 4 November 2026, up 0.94% on the day, with volume of 136,172. It had gained 4.5% over five sessions and 0.8% over 20 sessions, but remained near its 52-week low of ₹452.65 recorded on 30 October 2026, versus a 52-week high of ₹883.35 on 6 November 2025

Source: Multibagg AI, 05 Nov 2026

Not investment advice. For informational purposes only.