J k lakshmi

Cost & Margin Outlook: - Margins: Expected EBITDA margins for FY26 in the 8–9% range, down from earlier 9–10%, primarily due to inflation, fuel, and labor shortages. - Cost Control: Target Rs. 100–120/ton reduction over FY26–27 via renewable energy, TSR (Thermal Substitution Rate) increase from 9% to 12-13%, logistics efficiencies, and supply chain measures. - Fuel: Q4 fuel costs Rs. 1.52–1.53/kcal, expected to remain stable in Q1 FY26, managed via opportunistic procurement. Risks & Challenges: - Project delays, particularly in the Northeast (Agrani Cement), impacts revenue; timely resolution remains uncertain. - Cost inflation, labor shortages, and sector-specific challenges influence margins. - Underperformance in some regional projects may continue; focus remains on disciplined execution. Management Outlook: - Confident about outpacing industry growth through premium products, green energy, and operational efficiencies. - Continued focus on cost reduction, strategic expansion, and disciplined project execution. - No significant negative surprises expected; close monitoring of project timelines and cost pressures. Key Metrics Snapshot: - Trade sales: ~60% - Premium cement share: 25% - Blended cement share: 65% - Green power: 50% - TSR (FY25/FY26 Target): 9%/12-13% - EBITDA/ton: Rs. 976 - Capital expenditure FY26/FY27: Rs. 1,300 crore / Rs. 1,800 crore Summary: JK Lakshmi Cement’s FY25 was impacted by delays and cost overruns, but the company remains focused on strengthening margins through cost efficiencies, premiumization, and green energy initiatives. Significant capacity expansions are progressing with a long-term vision to reach 30 MTPA by FY30. Management adopts a cautious yet optimistic tone, emphasizing disciplined execution and strategic growth, with no material headwinds beyond operational delays and inflation. Monitoring project timelines, cost management, and margin recovery will be key as the company progresses into FY26.