JSW Cement Ltd (JSWCEMENT) Q1 FY27 Earnings Call: Guides High-Teens Volume Growth, North Breakeven Targeted in Q2

JSW Cement Ltd held its Q1 FY27 earnings call on August 13, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Headline Financials & Operational Metrics

• Consolidated revenue of Rs.1,896 crores — up 22% YoY and flat QoQ in Q1 FY 2026-2027.
• Operating EBITDA of Rs.299 crores — down 7.5% YoY, weighed by higher fuel and packing costs and a Rs.33 crore marketing investment in the North region.
• EBITDA per tonne of Rs.784 — excluding North operations, EBITDA was Rs.336 crores (Rs.979/tonne).
• Volume of 3.81 million tonnes — up 15% YoY; cement volumes rose 27% YoY. Excluding North, volumes grew 8% YoY.
• Cement realisation of Rs.4,951/tonne — up 6% QoQ; GGBS realisation of Rs.3,807/tonne, up 3.4% QoQ.
• Net debt of Rs.3,856 crores — net debt-to-EBITDA at 2.95x; average cost of debt stable at 7.63%.

Demand Trends, Segment Performance & Forecast Revisions

• High-teens volume growth guided for FY 2026-2027 — management expects overall company volume growth (including North) in the high teens for FY 2026-2027, covering both cement (including North) and GGBS. No split between cement and GGBS or legacy versus North was provided.
• GGBS guidance revised down to high single digits — management revised FY 2026-2027 GGBS growth guidance from mid-teens to high single digits, citing Q1 impact. For FY 2027-2028 and FY 2028-2029, the outlook depends on capex spend and infra growth; management sees a "very positive" outlook.
• Ex-North cement volume grew 8% in Q1 — versus industry ex-North growth of ~6%; East and West regions outperformed, while South faced temporary headwinds now resolved.
• JGBs segment growth slowed in Q1 — due to RMC closures in the West, aggregate availability issues in the South, and low OPC fly ash mix costs. Management expects JGBs to grow in the high single digits for FY 2026-2027, with Q2 expected to outperform Q1 despite monsoon season.
• Central government CAPEX grew 24% YoY — management cited "central CAPEX grew 24% YoY, with 28% of FY27 budget utilised in Q1" as a key demand support. Additionally, "approvals have been received for 29 large infrastructure projects in Q1 FY 2026-2027," underpinning a robust project pipeline.

Launch, Losses & the Path to Profitability

• North operations launched in Q1 FY 2026-2027 — achieved average utilisation of 55%, reaching 68% in June 2026. Overall capacity utilisation for the cement business in Q1 was 61%.
• North operating loss of Rs.40 crores — included a Rs.33 crore marketing investment for a new campaign launch and ground-level activations (Khel Mahotsav in Rajasthan, Dangal in Haryana). Management stated the spend was in line with the business plan.
• North expected to reach EBITDA break-even in Q2 FY 2026-2027 — management cited 55-60% capacity utilisation as the current break-even point due to limestone transport costs; utilisation expected to improve with WHR, O-LBC, and low-cost fuel sourcing.
• North capacity utilisation guided to 60%+ by end of FY 2026-2027 — up from ~55% in Q1. Management expects North operations to turn profitable for the full fiscal year FY 2026-2027.
• Profitability gap vs. South guided at Rs.600-700 per tonne — North expected to break even by September and turn positive thereafter. Key cost levers (OLVC, alternate fuel, WHR, domestic coal shift) expected to benefit from Q2 onward.
• North incentive of ~Rs.650 crores over 10 years — management confirmed a capital subsidy eligibility certificate expected within 2 months. The incentive structure: "Rs.50 cr first 4 yrs, Rs.65 cr next 4, Rs.80 cr last 2." Recognition likely in H2 FY 2026-2027 after capitalisation of waste heat/RMC/AFR.

Fuel, Logistics, Marketing Spend & Efficiency Levers

• Blended fuel cost rose to Rs.1.80/Mcal — versus Rs.1.49/Mcal in Q4 FY 2025-2026. Management is working to increase domestic fuel share. Fuel cost expected to remain at the similar level in Q2 FY 2026-2027, then decline in Q3 with the shift to domestic coal.
• Logistics cost per tonne fell 2% QoQ — other expenses rose 4.5% QoQ partly due to North marketing and packing costs.
• Marketing expense run rate raised to Rs.130 crore for FY 2026-2027 — up from the historical Rs.80-85 crore. This includes Rs.33 crore spent on North operations in Q1; management expects the figure to rise further as the company enters new territories.
• Clinker utilisation at 61% including Nagaur — excluding Nagaur (Nandyal and Shiva), utilisation was 87% in Q1 FY 2026-2027, highlighting the drag from the new integrated unit.
• Cost savings program ongoing — the renewable power initiative is largely complete by September 2026; quantified progress to be updated after the next quarter's results. Earlier guidance (May) remains the reference.

Investment Roadmap & Project Timelines

• Capex of Rs.337 crores in Q1 FY 2026-2027 — management maintains the full-year guidance of Rs.2,300 crores for FY 2026-2027 with no expected miss. Capex plan: ~Rs.2,000 crores in FY 2027-2028.
• Total capex of Rs.7,500-7,600 crores — to expand capacity from 24.1 mt to 43.5 mt over several years. Central region entry expected in the coming quarters.
• Nagaur (Rajasthan): 3.5 MTPA at Rs.3,500 crores — Rs.2,400-2,500 crores spent so far. A 1 MTPA line will start in Sep/Oct 2026, raising capacity from 2.5 MTPA to 3.5 MTPA. Q1 exit utilisation was 68%; full-year FY 2026-2027 utilisation guided at ~60%. An additional 2.5 MTPA line is expected by end of FY 2027-2028. The next 2.5 MTPA capacity is guided at Rs.30 crores (period unspecified).
• Vijayanagar Phase 1 expansion delayed — to maintain overall capacity utilisation at around 61% (including Nagaur) in Q1. Bhojera expansion is expected to be operational within 12 months; Dolvi expansion (4 million tonnes) to start shortly and complete within 15 months.
• Long-term capacity vision: 68 mt — management outlined a plan to "first reach 43 mt, then 25 mt more in the following 3–4 years" (total 68 mt). Sequencing of North Line 2, Central, and Northeast to be decided in ~2 months.
• RMC business scaling from 15 to 35 plants — Q1 FY 2026-2027 RMC revenue of ~Rs.180 crores; full-year target north of Rs.1,000 crore for FY 2026-2027, including group captive projects. Management declined to provide margin guidance due to captive mix and initial ramp-up phase.

Renewable Targets, Cost Levers & Forward View

• Renewable energy share reached 30% — with 56 MW of wind capacity added in Q1 FY 2026-2027.
• Green energy target of 63% by FY 2026-2027 — previously set at 49% by Q4 FY 2025-2026 and 63% by FY 2026-2027. Slight delays due to land issues, now resolved. Management confirmed all previously communicated renewable capacities will be operational by September 2026 (Q2 FY 2026-2027), enabling achievement of over 60% green energy share by end of FY 2026-2027.
• Waste heat recovery and AFR co-processing at Nagaur — expected to commission in the next few weeks. An additional 1 million tonne grinding capacity at Nagaur is on track for end of Q2 FY 2026-2027.
• Other income includes Rs.55 crores — from deconsolidation of JSW1, reflecting its positive net worth after a recent fundraise; JSW1 intends to list within FY 2026-2027. Other incentives booked in Q1 were slightly less than Rs.6 crores.
• Punjab expansion land secured — land investment to date is approximately Rs.50-60 crores; remaining land acquisition is minimal. The project is awaiting Environmental Clearance (EC) from the Pollution Control Board (PCB), after which work will commence.
• Demand outlook remains strong — supported by government infrastructure spending and 29 large project approvals in Q1. Management expects overall company volume growth in the high teens for FY 2026-2027, with North operations turning profitable and JGBs recovering in the coming quarters.