JKCEMENT — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

CEMENT LIMITED · MODERATOR:

MR. PRASHANT SETH – PRESIDENT (BUSINESS INFORMATION AND INVESTOR RELATIONS), JK

Moderator · Conference Operator

MR. VAIBHAV AGARWAL – PHILLIPCAPITAL (INDIA) PRIVATE LIMITED JK Cement Limited January 19, 2026

Amit Murarka: · Okay. Also on costs, so in this quarter your other expenses have declined quite sharply while

It was INR 86 crores in Q2 you mean?

Okay.

And it is INR 60 crores now.

So, INR 60 crores should be the run rate, or it will go up now with the Buxar unit starting in this quarter?

Okay.

Also on costs, so in this quarter your other expenses have declined quite sharply while you had explained in Q2 that it was a bit elevated in Q2. But Q3 seems actually a little bit lower than what was generally expected to come through.

So, is it like some marketing spends kind of being lower in the quarter or anything like that which led to this lower number or this is a normal run rate to think of?

JK Cement Limited January 19, 2026

Okay.

And just a last question for Panna Line 2 commissioning.

So, your capacity mentioned in the press release is 3.3 million tonnes, but you have been saying that it has potential to do 4 million tonnes.

So, by when can we expect that 4 million tonnes potential to kind of get unlocked?

Will it be through debottlenecking or how will it happen?

Sure.

But some additional equipment will be required to be added to get to 4?

Okay.

No major capacity.

Thanks a lot.

I will come back in the queue.

Moderator · Conference Operator

Thank you.

The next question is from the line of Kunal Shah from DAM Capital.

Please go ahead.

Kunal Shah

Yes.

Hi, sir.

Couple of questions.

So, beginning with the mid-teens sort of a base of volume growth, which we have achieved during F26 or will be achieving.

What sort of growth now are we targeting over Fragrance 26 to 28 from a volume perspective?

Moderator · Conference Operator

Thank you.

The next question is from the line of Akshay Shetty from Mirae Asset.

Please go ahead.

Akshay Shetty

Good evening, sir.

Thank you for taking my question.

I have only one question, mainly on the industry trends.

So, from an industry perspective, how are you seeing demand trends over next two quarters to three quarters across key regions?

And also, with multiple players announcing capacity additions, how do you see the supply situation evolving?

Do you expect pricing discipline to sustain, or there could be some pricing pressure increase in certain markets?

JK Cement Limited January 19, 2026

Moderator · Conference Operator

Thank you.

The next question is from the line of Harshal Mehta from Asian Market Securities.

Please go ahead.

Harshal Mehta

Hi, sir.

Thank you for the opportunity.

Three questions from my end.

First, in terms of a couple of quarters, a lot of expansions being around in North, especially from FY29 perspective.

How do you see industry pricing discipline and pricing trend?

That was one.

Second, in terms of booking, what is our current CC ratio?

And do we see any risk in terms of clinker shortage for H2 FY 2027?

That was second.

And lastly, in terms of non-trade, we have seen like very sharp jump this quarter.

Should we expect our non-trade share to remain at these levels or we expect it to inch down back to earlier levels?

That was the third question.

Moderator · Conference Operator

Thank you.

The next question is from the line of Pathanjali Srinivasan from Sundaram Mutual Fund.

Please go ahead.

Pathanjali Srinivasan

Thank you for the opportunity, sir.

Sir, I just wanted to know how the lead distance would change for us and how logistics costs will change post commissioning of Buxar plant, because I believe we have been seeding this market for some time from Panna.

So, can you give me some color on this?

Moderator · Conference Operator

Thank you.

The next question is from the line of Navin Sahadeo from ICICI Securities.

Please go ahead.

Navin Sahadeo

Hello.

Good evening, sir and thank you for the opportunity.

Sir, there are a couple of questions.

So, first was that I think for nine months, our volume growth is already 18% - 19%.

Should we look at it only from sales, incremental sales from new markets or new regions that we got?

Or we got benefit or we could increase our market share in the existing markets as well?

That was my question, first.

Moderator · Conference Operator

Thank you.

The next question is from the line of Sanjeev Singh from Motilal Oswal.

Please go ahead.

JK Cement Limited January 19, 2026

Sanjeev Singh

Thank you for the opportunity sir.

Just one clarification, so you were saying 20 million tonne of volume, that implies only 1% - 2% kind of a growth year-on-year basis.

So, does it mean that given the clinker utilization rate of 97% in 3Q, probably volume growth from existing plants could be flat.

And the incremental volume could be from the Panna plant, because at the same time you mentioned that industry growth could be at 6% - 7%.

And given JK Cement's historical growth rate, we would assume that the volume growth should be higher than what the industry is doing.

So, just needed one clarification on this.

And secondly, if you can put out some number on what has been the pricing improvement in January so far, both in trade as well as trade segment.

Moderator · Conference Operator

Okay, sir.

Thanks a lot.

Thank you.

The next question is from the line of Ritesh Shah from Investec Capital.

Please go ahead.

Ritesh Shah

Hi, sir.

Thanks for the opportunity, sir.

I have a couple of questions.

Sir, first is, would it be possible for you to dissect the fuel mix, given you hinted on the linkage, so what is pet coke?

How much is linkage?

How much is non-linkage?

And any indication of how that will play out in the next quarter?

Moderator · Conference Operator

Thank you.

The next question is from the line of Rajesh Ravi from HDFC Securities.

Rajesh Ravi

Yes.

Hi, sir.

Good evening.

My first question pertains to your cost saving projects.

Could you quantify how much we have achieved so far in FY 2026?

And what is the guidance for full year and next year?

Okay.

And second on this labour cost provision, whatever you factored in as an exception, what would be the recurring impact on a quarterly basis here on?

Okay.

And the INR 60 crores run rate will continue, but exit FY 2027, you are looking at going back to around INR 75 crores run rate.

Moderator · Conference Operator

Thank you.

The next question is from the line of Parvez Qazi from Nuvama Group.

Please go ahead.

JK Cement Limited January 19, 2026

Parvez Qazi

Hi, good afternoon, sir.

And thanks for taking my question.

So, two questions from my side.

What was the real share this quarter?

And second, any comments on the paint business will be helpful.

Thank you.

Moderator · Conference Operator

Thank you.

The next question is from the line of Siddharth M. from Kotak Securities.

Please go ahead.

Siddharth M.

Hi, sir.

Thanks for the opportunity.

I just wanted to check, when you say that non-trade prices are up approximately INR 15 per bag to INR 20 per bag, is it similar across regions or is it largely confined to the North region when you give this particular comment?

Moderator · Conference Operator

Thank you.

The next question is from the line of Shravan Shah from Dolat Capital.

Please go ahead.

Shravan Shah

Hi.

Thank you, sir.

Sir, a couple of questions.

First, in terms of the next expansion, post Jaisalmer, we will be going for the Muddapur 5 million tonne expansion.

Moderator · Conference Operator

Thank you.

The next question is from the line of Milind Raginwar from BOB Capital Markets.

Please go ahead.

Milind Raginwar

Thank you for this opportunity, sir.

May I request you, if you can share the clinker production number for the quarter?

And, sir, if you can just give us some idea on the fact that what would be the cost differential for North vis-à-vis the Central and East?

Just in the sense, a ballpark number?

Moderator · Conference Operator

Thank you.

The next question is from the line of Pushkar Jain from Mili Capital.

Please go ahead.

JK Cement Limited January 19, 2026

Pushkar Jain

My question is already answered.

Thanks a lot.

Moderator · Conference Operator

Thank you.

The next question is from the line of Harsh Mittal from Emkay Global.

Please go ahead.

Harsh Mittal

Good evening, sir.

Thank you for the opportunity.

So, my first question is that what is the fuel consumption cost?

Or will there be a lag?

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, due to time constraints, that would be the last question for today, which is from the line of Parth Bhavsar from Investec.

Please go ahead.

Parth Bhavsar

Yes, thank you.

All my questions have been answered.

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, as this was the last question for today, I now hand the conference over to Mr. Vaibhav Agarwal for closing comments.

Vaibhav Agarwal

Thank you.

On behalf of PhillipCapital (India) Private Limited we would like to thank the management of JK Cement for the call and also many thanks to the participants for joining the call.

Thank you very much, sir.

You may now conclude the call.

Thank you.

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, on behalf of PhillipCapital (India) Private Limited, thank you for joining us and you may now disconnect your lines.

Questions and answers

Moderator · Conference Operator

Thank you very much.

We will now begin the question-and-answer session.

The first question is from the line of Amit Murarka from Axis Capital.

Please go ahead.

Amit Murarka: · Okay. Also on costs, so in this quarter your other expenses have declined quite sharply while

Hi.

Good evening.

Thanks for the opportunity.

Just on incentives booked, could you give that number for Q3?