Synopsis:
Shares declined after weak quarterly results, with revenue and profit showing sequential drops despite annual growth. Brokerages trimmed targets amid margin pressure and higher costs but maintained optimism, citing ongoing capacity expansion, improving demand, and strong long-term growth prospects in the cement sector.
The shares of the prominent Grey Cement manufacturer plummeted up to 5 percent in today’s trading session after the company reported weak results in Q2FY26 & also brokerage trimmed its target price.
With a market capitalization of Rs 45,640.15 crore, the shares of JK Cement Ltd were trading at Rs 5,895.15 per share, decreasing around 5.14 percent as compared to the previous closing price of Rs 6,214.50 apiece.
Q2FY26 Highlights
The shares of JK Cement Ltd have seen bearish movement after announcing its weak financial performance in Q2FY26, in which revenue increased by 18 percent on a year-on-year basis from Rs 2,560 crore in Q2FY25 to Rs 3,019 crore in Q2FY26. However, on a Quarter-on-Quarter basis, revenue slips by 10 percent from Rs 3,353 crore in Q1FY26 to Rs 3,019 crore in Q2FY26.
Moreover, net profit increased by 17 percent on a yearly basis from Rs 136 crore in Q2FY25 to Rs 159 crore in Q2FY26, meanwhile, on a quarter-on-quarter basis, net profit plummeted by 51 percent from Rs 324 crore in Q1FY26 to Rs 159 crore in Q2FY26.
Furthermore, JK Cement’s grey cement sales growth of 16% year-on-year and white cement & wall putty sales growth of 10% year-on-year. The Prayagraj grinding unit increased capacity by 1 MTPA, raising total capacity to 3 MTPA. Grey cement capacity utilization stood at 69%, clinker at 90%, and blended cement at 67%.
Operational Highlights & Brokerage Views
JK Cement boasts a robust production capacity with 26.26 MTPA of grey cement and 3.05 MTPA of white cement, and wall putty. Its power infrastructure includes 77.5 MW coal-based, 82.3 MW waste heat recovery, and 154.84 MW solar and wind power, supported by 237.14 MW green energy capacity.
JK Cement’s 6 MTPA grey cement capacity expansion is progressing well, with major projects nearing completion. The 4 MTPA clinker capacity at Panna is 95% complete, while 3 MTPA grinding units at Panna, Hamirpur, and Prayagraj are advancing steadily. Additionally, a 3 MTPA split grinding unit at Bihar is on schedule, with ₹314 crore spent.
Citi reaffirmed its Buy rating on JK Cement but cut the target price to ₹7,275 from ₹7,600, implying a 23% upside from current levels. The brokerage attributed the Q2 softness to elevated costs and weaker realizations but maintained a positive outlook. It expects margin recovery supported by ongoing capacity expansion, improving demand trends, and the company’s strong positioning in the cement sector, reinforcing long-term growth confidence.
JK Cement Ltd is one of India’s leading cement manufacturers, known for its diversified product portfolio spanning grey cement, white cement, and wall putty. With a strong domestic and international presence, the company continues to drive growth through capacity expansion, innovation, and a focus on sustainable, energy-efficient production practices.
Written by Abhishek Singh
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