JSW Cement margin slips as costs outpace 33% revenue growth
A lower YoY tax rate supported net profit, while sequential profit fell -49.40% as costs and interest rose faster than revenue.
Filed 27 Oct 2026, 20:05 IST · after market close · JSW Cement Ltd (JSWCEMENT)
Key takeaways
- Consolidated revenue grew +33.12% YoY, but expenses grew +39.82%, cutting operating margin by -4.09 percentage points.
- Net profit rose +3.01% YoY to Rs 77.63 cr as profit before tax fell -16.92% and other income contributed 36.92% of PBT.
- Operating margin fell to 14.53%, which was -0.70 percentage points below the 15.23% median for 23 reported Commodities peers.
Price around the results
Costs erased much of the revenue gain
In consolidated results, revenue grew +33.12% YoY, but expenses rose +39.82%, so operating profit increased only +3.84% and operating margin narrowed by -4.09 percentage points. Sequentially, revenue grew +0.83% while expenses increased +2.28%, driving a further -1.21 percentage-point margin decline. Net profit fell -49.40% QoQ as operating profit declined and interest expense rose +17.57%.
Lower tax rate masked weaker pre-tax profit
Profit before tax fell -16.92% YoY, but the tax rate dropped by -14.91 percentage points to 22.94%, limiting the decline in net profit to +3.01%. Other income contributed 36.92% of profit before tax, making reported earnings less reflective of operating profit alone. QoQ, other income fell -57.01% and the tax rate rose by +3.62 percentage points.
Margin is below peers after two consecutive declines
Operating margin has fallen for two straight quarters, from 19.27% in Q4FY26 to 15.74% in Q1FY27 and 14.53% in Q2FY27. The latest margin was -0.70 percentage points below the 15.23% median among 23 Commodities peers that had reported. JSW Cement ranked 11th from the bottom on this measure.
Management points to capacity and green-power expansion
Management said its approved expansion plan aims to increase overall capacity by approximately 2.7 times, while an additional 1.0 MTPA grinding capacity was commissioned at Nagaur on 6 October 2026. The company said detailed engineering and contractor finalisation are underway for a further 2.5 MTPA Nagaur grinding unit, which management said would take the site's grinding capacity to 6.0 MTPA after commissioning. The presentation said green power's share rose from approximately 30% in Q1FY27 to approximately 41% in Q2FY27, while management flagged geopolitical events, monsoons and inflation as concerns.
No immediate stock reaction after the late filing
The consolidated results were filed after market close, so there is no post-results move to assess yet. After the past five results, the stock rose three times and fell twice, with a median absolute move of 3.54%.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹1,912 cr | ₹1,896 cr | +0.83% | +33.12% |
| Other income | ₹37 cr | ₹87 cr | -57.01% | +10.88% |
| Expenses | ₹1,634 cr | ₹1,598 cr | +2.28% | +39.82% |
| Operating profit | ₹278 cr | ₹299 cr | -6.96% | +3.84% |
| Operating margin (%) | 14.53% | 15.74% | — | — |
| Interest | ₹114 cr | ₹97 cr | +17.57% | +14.13% |
| Depreciation | ₹100 cr | ₹98 cr | +2.30% | +25.46% |
| Profit before tax | ₹101 cr | ₹190 cr | -47.02% | -16.92% |
| Tax | ₹23 cr | ₹37 cr | -37.08% | -49.64% |
| Net profit | ₹78 cr | ₹153 cr | -49.40% | +3.01% |
| EPS (₹) | ₹0.63 | ₹1.20 | -47.50% | -11.27% |
Operating margin of 14.53% compares with a Commodities sector median of 15.23% across 23 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.
This quarter
- Green power's share increased from approximately 30% in Q1 FY27 to approximately 41% in Q2 FY27.
- The Nagaur Integrated Unit commissioned its complete waste heat recovery system.
Expansion
- The approved expansion plan aims to increase overall capacity by approximately 2.7 times.
- An additional 1.0 MTPA grinding capacity was commissioned at Nagaur on 6 October 2026.
- Detailed engineering and contractor finalisation are underway for a further 2.5 MTPA grinding unit at Nagaur.
- Nagaur's cement grinding capacity will increase to 6.0 MTPA after commissioning of the planned unit.
- The company installed 32 MW of wind capacity at its Nandyal Integrated Unit in Q2 FY27.
Problems & risks
- The company says geopolitical events remain challenging, while monsoons and inflation are concerns.
What to watch
- Whether operating margin improves from 14.53% after its two-quarter decline.
- Whether green power's share remains near 41%, versus approximately 30% in Q1FY27.
- Progress on the 2.5 MTPA Nagaur grinding unit, which management said is in detailed engineering and contractor finalisation.