Synopsis: A small-cap Cement infrastructure stock is in focus after announcing that its management has given the future outlook of the company.
A small-cap company that is a part of the JK group, is a manufacturer and supplier of Cement and related products in different states in India is in the spotlight following the announcement of its capex and capacity guidance for FY26 in their Q2 results. The article below provides a detailed overview of the company’s performance and future outlook.
With a market capitalization of Rs. 10,405.79 crore, the shares of JK Lakshmi Cement Limited were trading at Rs. 838.20, down by 0.10 percent from its previous closing price of Rs. 839.05. In today’s trading session it has touched an intraday low of Rs. 836.30 per equity share.
Q2 Results
JK Lakshmi Cement Limited reported Rs. 1,531.77 crore in revenue for the second quarter of FY26, a 24.1 percent increase over the Rs. 1,234.29 crore for the same period in FY25. But it decreased by 12 percent as compared to Rs. 1,740.93 crore in Q1 FY26.
The company’s EBITDA for Q2 FY26 stood at Rs. 208.25 crore, down by 33.1 percent from Rs. 311.19 crore in Q1 FY26, and inclined by 133.3 percent from Rs. 89.26 crore in Q2 FY25.
The consolidated net profit for the second quarter of FY26 was Rs. 80.63 crore, as compared to loss of Rs. 30.80 crore in Q2 FY25. The company’s net profit declined by 46.2 percent as compared to Rs. 149.88 crore in Q1 FY26.
Capacity Guidance
Mangalam Cement currently operates at 18 mtpa, following the commissioning of its Surat grinding unit. The company targets a total capacity of 30 mtpa by FY30, driven by a mix of brownfield and greenfield projects. The Durg brownfield expansion will increase capacity to 22.6 mtpa by FY28, with orders for long-lead items already placed. Grinding capacity is expected in phases, with 2.2 mt by March 2027 and the balance by March 2028.
Greenfield projects include Nagaur (Rajasthan) and Kutch (Gujarat), each adding ~3 mtpa cement and ~2 mtpa clinker, along with a 2–2.5 mtpa unit in Assam, planned for commissioning across FY29–FY30. Additionally, preparatory work is underway in Bihar, Prayagraj, and Jharkhand for future grinding units.
CAPEX Guidance
The company plans a structured capital expenditure roadmap, with FY26E CAPEX at Rs 1,000–1,200 crore, followed by Rs 1,300–1,500 crore annually over FY27–FY28. The total outlay across the current and next two years is estimated at ~Rs 4,200 crore, with Rs 3,000 crore allocated to Durg and the remainder (~Rs 1,200 crore) earmarked for maintenance, land acquisition, and North-East project preparation.
Greenfield projects are largely back-ended, with major spending expected in FY28–FY29. Cost inflation is projected at $100 per ton by 2030, and the management aims to maintain leverage below the 3–3.5x net debt-to-EBITDA threshold while executing its expansion plans.
About the Company
JK Lakshmi Cement Limited, incorporated in 1938 and based in New Delhi, manufactures and supplies a wide range of cement products in India. Its portfolio includes Portland Cement, Portland Pozzolana Cement, Portland Slag Cement, and Composite Cement, along with value-added offerings such as ready-mixed concrete, gypsum plaster, wall putty, autoclaved aerated blocks, and adhesives.
The company markets its products under multiple brands, including JK Lakshmi Cement, Platinum Heavy Duty, JK Lakshmi PRO+, Platinum Supremo, JK Lakshmi Classic, and JK Lakshmi Green+, catering to diverse construction needs. Its products are widely used in residential projects, infrastructure developments such as bridges, airports, dams, roads, railways, and metro systems, reflecting a strong presence across both individual and large-scale construction segments.
A return on equity (ROE) of about 8.72 percent, a return on capital employed (ROCE) of about 10.5 percent and debt to equity ratio at 0.72 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 22.3x which is lower as compared to its industry P/E 36.8x.
As of September 2025, the company’s shareholding pattern shows that promoters hold 45.12 percent of the total equity, Foreign Institutional Investors (FIIs) hold 12.54 percent, while Domestic Institutional Investors (DIIs) own 22.83 percent. The public shareholding stands at 19.49 percent, reflecting a healthy level of institutional and retail participation in the company.
Written by: Akshay Sanghavi
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