JSW Cement Shares Surge Up to 9% as Q4 Net Profit Sees Tenfold Increase
JSW Cement Sees Tenfold Profit Jump in Fourth Quarter
JSW Cement reported a significant increase in fourth-quarter profit, with its consolidated net profit rising to Rs 371 crore for the quarter ended March 31, a tenfold jump from Rs 34 crore a year ago. This improvement in profit is attributed to improved demand for cement, which accelerated 6-7% year-on-year in January and February due to strong growth, according to analysts at HDFC Securities. Although the demand moderated in March, the government's GST cut on cement bags to 18% from 28%, effective September, also contributed to the company's improved performance.
The company's revenue from operations rose 10.9% to Rs 1,895 crore. However, raw material costs jumped 16%, while freight expenses rose 10.7% due to disruptions linked to the Middle East crisis. Total expenses climbed 2.4% to Rs 1,702 crore. Despite these challenges, the company's operating EBITDA margin was 19.3% in Q4 FY26, as against 14.6% in Q4 FY25.
The company's strong performance is also reflected in its share price, which rose as much as 9.3% after the results before trimming some gains to trade 5% higher. The company's reappointment of Nilesh Narwekar as CEO and the approval of additional cement grinding capacity of 2.5 MTPA in Rajasthan state are seen as positive developments for the company.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| Company | Q4 FY26 Profit (Rs Cr) | Q4 FY25 Profit (Rs Cr) | Growth |
|---|---|---|---|
| JSW Cement | 371 | 34 | 986.76% |
| UltraTech Cement | (not provided) | (not provided) | (beat profit view) |
| Ambuja Cements | (not provided) | (not provided) | 195.45% (nearly three-fold profit jump) |
Note: The profit figures for UltraTech Cement and Ambuja Cements are not provided in the original text, so they are not included in the table.
Investor Takeaway
JSW Cement's shares surged up to 9% due to a tenfold increase in Q4 net profit, driven by improved demand and government's GST cut on cement bags.
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