JK Cement profit grows as margins come under pressure

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 JK Cement Limited (

) reported consolidated net profit of ₹173 crore in Q2 FY27, up 7.8% year-on-year. Revenue from operations increased 23.7% to ₹3,733 crore. However, EBITDA margin declined to 13.6% from 14.8% a year earlier. What happened? EBITDA rose 13.6% to ₹507 crore, growing more slowly than revenue. This indicates that higher sales have not translated proportionately into operating profitability. Separately, the company's wholly owned subsidiary, JK Maxx Paints, approved a ₹130 crore investment in a new water-based paint manufacturing plant in Telangana. The facility will have an annual capacity of 75,000 kilolitres and is expected to be commissioned within about 12 months of construction starting. The investment falls within the previously approved ₹600 crore allocation for the paints business. Why does it matter? The cement business is growing its revenue, but margin compression highlights the importance of cost management. Meanwhile, the paints expansion offers diversification beyond cement, although the benefits will depend on capacity utilisation, demand and execution. My view The quarter shows healthy revenue growth but some pressure on operating efficiency. The paints investment is a strategic expansion rather than an immediate earnings driver. Its contribution will need to be assessed over time. What I am watching next I would track cement margins, input costs, volume growth, paints capacity utilisation and the execution timeline for the Telangana facility. No Recommendations Source: NDTV Profit Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in JK Cement Limited.