JSW Cement margin rebounds, while a tax benefit drives Q4 profit
Revenue growth outpaced expenses sequentially, but the -68.30% tax rate was the larger driver of the profit surge.
Filed 21 May 2026, 18:05 IST · after market close · JSW Cement Ltd (JSWCEMENT)
Key takeaways
- A -68.30% tax rate, versus 29.12% in Q3FY26, drove much of the +176.87% sequential increase in net profit.
- Operating margin rose 1.69 percentage points as revenue grew +16.89%, faster than expenses at +14.50% sequentially.
- The stock gained +8.26% on the first trading day, well above its 3.54% median absolute move after the last three results.
Price around the results
Q4 operating momentum returned
JSW Cement's consolidated revenue grew +16.89% sequentially, while operating profit rose +28.08%, lifting operating margin by 1.69 percentage points to 19.27%. The improvement came as expenses grew +14.50%, slower than revenue. Management said total volume sold increased +6.80% year on year to 3.99 million tonnes, including cement volumes up +11.60% to 2.35 million tonnes.
Tax benefit was the main profit-quality factor
Net profit rose +176.87% sequentially even though profit before tax increased only +16.60%. The tax rate moved from 29.12% in Q3FY26 to -68.30% in Q4FY26, indicating a tax benefit rather than a normal tax charge. Other income fell -66.96% sequentially and accounted for 10.33% of pre-tax profit, so it was a smaller contributor to the profit increase.
Margin recovered after two quarters of decline
Operating margin had declined from 20.69% in Q1FY26 to 18.62% in Q2FY26 and 17.58% in Q3FY26 before recovering to 19.27% in Q4FY26. The reported margin was 0.50 percentage points above the 18.77% median for the 51 Commodities peers that had reported the quarter.
Nagaur expansion adds to the operating footprint
Management said production has started at the Nagaur greenfield integrated plant, with 3.3 MTPA of clinker capacity and 2.5 MTPA of initial grinding capacity. The company also said it approved another 2.5 MTPA of grinding capacity at Nagaur at a capital cost of Rs 430 crore. Management further said JSW Cement was declared the Preferred Bidder for two limestone blocks in Assam.
Market reaction was larger than the stock's usual move
The stock rose +8.26% on the first trading day after the results, including a +2.07% opening gap, compared with a 3.54% median absolute move after its last three results. The gain narrowed to +5.74% on the next session and turned to -1.12% by the fifth session, while the 30-session return stood at +6.79%.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹1,895 cr | ₹1,621 cr | +16.89% |
| Other income | ₹22 cr | ₹67 cr | -66.96% |
| Expenses | ₹1,530 cr | ₹1,336 cr | +14.50% |
| Operating profit | ₹365 cr | ₹285 cr | +28.08% |
| Operating margin (%) | 19.27% | 17.58% | — |
| Interest | ₹89 cr | ₹87 cr | +2.40% |
| Depreciation | ₹84 cr | ₹81 cr | +2.93% |
| Profit before tax | ₹215 cr | ₹184 cr | +16.60% |
| Tax | ₹-147 cr | ₹54 cr | — |
| Net profit | ₹362 cr | ₹131 cr | +176.87% |
| EPS (₹) | ₹2.77 | ₹1.06 | +161.32% |
Operating margin of 19.27% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +8.26% | +7.99% |
| Next session | +5.74% | — |
| 5 sessions | -1.12% | +0.03% |
| 15 sessions | +2.42% | — |
| 30 sessions | +6.79% | — |
Volume on the results session was 37.18× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Total volume sold increased 6.8% year on year to 3.99 million tonnes in Q4 FY26.
- Cement volume sold increased 11.6% year on year to 2.35 million tonnes in Q4 FY26.
Expansion
- The company approved an additional 2.5 MTPA grinding capacity at Nagaur, Rajasthan, at a capital cost of ₹430 crore.
- JSW Cement commenced production at its Nagaur greenfield integrated plant with 3.3 MTPA clinker capacity and 2.5 MTPA initial grinding capacity.
- The company was declared the Preferred Bidder for two limestone blocks in Umrangso, Dima Hasao District, Assam.
What to watch
- Whether operating margin holds above 19.27% after the 1.69-percentage-point Q4FY26 rebound.
- Whether the tax rate moves away from -68.30% relative to the 29.12% reported in Q3FY26.
- Whether volumes build on 3.99 million tonnes, including cement volume of 2.35 million tonnes, as Nagaur capacity comes on stream.