Mumbai: JK Lakshmi Cement Ltd posted a 25.8% sequential decline in standalone net profit to ₹58.12 crore in Q3 FY26, even as revenue from operations grew 6.1% QoQ to ₹1,588.40 crore. Compared to Q2 profit of ₹78.33 crore and Q1's ₹155.67 crore, the decline reflects margin pressure. On a YoY basis, net profit dipped 20.2% from ₹72.85 crore, despite a healthy 10.6% growth in revenue. The company’s top-line momentum remained steady across all three quarters.
Strong Revenue Growth but Margin Headwinds Persist
JK Lakshmi Cement reported total income of ₹1,622.17 crore in Q3 FY26, up from ₹1,524.56 crore in Q2 and ₹1,452.91 crore in Q3 FY25. Operational expenses rose to ₹1,507.04 crore during the quarter, marking a 10.5% YoY increase. PBIDT stood at ₹235.13 crore, a 10.5% rise over Q2. However, profit before tax declined to ₹75.98 crore, down from ₹91.35 crore in Q2 and ₹83.52 crore a year earlier.
Sequential Growth Pressured by Higher Costs
While revenue increased, higher input and freight costs weighed on margins, with EPS declining from ₹6.62 in Q2 to ₹4.91 in Q3. Total expenses grew 5.2% QoQ, offsetting gains from higher sales volumes. The company sold 32.81 lakh tonnes of cement in Q3, up from 30.31 lakh tonnes in Q2. The drop in profitability is also attributable to lower other income and higher depreciation and finance costs.
Management Outlook and Expansion Plans
Chairperson Vinita Singhania noted that the amalgamation of three subsidiaries was completed during the year, improving scale efficiencies. The company is implementing a ₹3,000 crore capex project to expand clinker and grinding capacity across Chhattisgarh, Bihar, Uttar Pradesh and Jharkhand, with completion targeted by March 2028. TSR (thermal substitution rate) enhancement projects and a new railway siding at the Durg plant are also underway to improve sustainability and logistics. No dividend was declared this quarter.
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Nine-Month Performance Indicates Robust Recovery
For the nine months ended December 2025, JK Lakshmi Cement reported a standalone net profit of ₹292.12 crore—up 158.7% from ₹112.91 crore in the same period last year. Revenue for the 9M period stood at ₹4,861.10 crore, a 13.2% jump from ₹4,295.00 crore. Improved operational scale and lower base effects supported the strong YoY earnings growth, despite quarterly volatility in margins.
Disclaimer: This article is based on the company’s regulatory filing for Q3 FY26. It is for informational purposes only and does not constitute investment advice or a recommendation.
