JK Lakshmi's Q2 profit falls 81.10% QoQ as margin slips
Revenue fell 15.11% QoQ, while slower cost reduction, a higher tax rate and lower other income drove the decline in net profit.
Filed 04 Nov 2026, 17:10 IST · after market close · JK Lakshmi Cement Ltd (JKLAKSHMI)
Key takeaways
- Consolidated net profit fell 81.10% QoQ to Rs 20.43 cr as revenue declined 15.11% and operating profit fell 40.41%.
- Operating margin narrowed 4.05 percentage points to 9.53% because expenses fell 11.14%, slower than revenue.
- Other income contributed 34.86% of pre-tax profit, while the tax rate rose 5.11 percentage points to 28.57%.
Price around the results
Sequential revenue decline drove the earnings drop
JK Lakshmi Cement's consolidated revenue fell 15.11% QoQ to Rs 1,616.92 cr, while operating profit declined 40.41% to Rs 154.13 cr. Net profit fell 81.10% to Rs 20.43 cr, with EPS dropping to Rs 1.66 from Rs 8.70. The sharper fall in profit than revenue reflects the margin squeeze and a 79.75% decline in pre-tax profit.
Costs fell slower than revenue and tax pressure increased
Expenses declined 11.14% QoQ, slower than the 15.11% fall in revenue, narrowing operating margin by 4.05 percentage points to 9.53%. Interest was nearly flat, rising 0.16%, while depreciation increased 1.81%; other income also fell 39.43%. Other income still represented 34.86% of pre-tax profit, and the 5.11-percentage-point rise in the tax rate to 28.57% further reduced earnings conversion.
Margin trails the sector after a sharp Q1 reversal
The 9.53% operating margin was 4.30 percentage points below the 13.83% median for the 96 Commodities peers that had reported the quarter. JK Lakshmi ranked 28th from the bottom on this measure. The margin also fell from 13.58% in Q1FY27, making the sequential deterioration more pronounced than the revenue decline alone suggests.
Management flags energy costs and industry capacity
Management estimated cement demand growth at 9–10% for Q2 FY27 and said the industry had 42–50 MT of capacity headroom to be added in FY27. The company's presentation said elevated energy prices were pressuring cement-industry margins, while it also flagged rural CPI at 6.08%, the rupee near Rs 95 per dollar and Brent crude above $115 in October 2026. These comments provide the operating context for the quarter's margin pressure, but are management's statements rather than reported company results.
Results were filed after market close
The consolidated results were filed after market close on 4 November 2026. There is therefore no same-day market move to assess.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,617 cr | ₹1,905 cr | -15.11% |
| Other income | ₹10 cr | ₹16 cr | -39.43% |
| Expenses | ₹1,463 cr | ₹1,646 cr | -11.14% |
| Operating profit | ₹154 cr | ₹259 cr | -40.41% |
| Operating margin (%) | 9.53% | 13.58% | — |
| Interest | ₹51 cr | ₹51 cr | +0.16% |
| Depreciation | ₹84 cr | ₹83 cr | +1.81% |
| Profit before tax | ₹29 cr | ₹141 cr | -79.75% |
| Tax | ₹8 cr | ₹33 cr | -75.34% |
| Net profit | ₹20 cr | ₹108 cr | -81.10% |
| EPS (₹) | ₹1.66 | ₹8.70 | -80.92% |
Operating margin of 9.53% compares with a Commodities sector median of 13.83% across 96 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- Cement demand growth is estimated at 9–10% for Q2 FY27.
Expansion
- The industry has estimated headroom of 42–50 MT to be added in FY27.
Problems & risks
- Elevated energy prices are creating margin pressure for the cement industry.
- Food-led inflation is adverse, with rural CPI already at 6.08%.
- The rupee was near ₹95 per dollar and Brent crude had crossed $115 in October 2026.
What to watch
- Whether consolidated operating margin moves back above 13.58%, its Q1FY27 level.
- Whether expenses decline faster than revenue, after falling 11.14% versus revenue's 15.11% QoQ drop.
- Reported cement demand against management's 9–10% Q2 FY27 estimate and the impact of energy prices on margins.