JSW Cement has kicked off FY26 with healthy operating traction, even though the headline profit line is distorted by a non-cash accounting adjustment tied to its pre-IPO preference shares. Here’s what happened, why it matters, and what to watch next—without the jargon.
JSW Cement Q1 FY26 at A Glance
- Revenue: INR 1,560 crore, up ~8% YoY (INR 1,447 crore in Q1 FY25).
- Operating EBITDA: INR 322.7 crore, up ~39% YoY; margin 20.7% (16.1% a year ago).
- EBITDA per tonne: INR 974 vs INR 758 last year.
- Volumes: 3.31 MT total (+~8% YoY):
- Cement: 1.85 MT (+10% YoY)
- GGBS: 1.30 MT (+5% YoY)
- Adjusted PAT: INR 100 crore (strips out a one-off fair-valuation charge).
- Reported PAT: INR (1,366) crore.
What drove the beat: Cement price realisation rose 5.7% QoQ; GGBS prices held steady. Costs were well-managed: logistics cost/ton fell ~6% YoY on shorter lead distances (283 km vs 295 km), and other expenses normalised after a branding/shutdown-heavy Q4.
The “Loss” That Isn’t About Cash: CCPS Fair-Value Charge
Before its IPO, JSW converted 16 crore compulsory convertible preference shares (CCPS) into ~23.57 crore equity shares (conversion dated 24 July 2025). Because those CCPS were classified as fair-value-through-P&L liabilities, accounting rules require marking them to fair value on 30 June 2025—creating a non-cash expense of INR 1,466.4 crore in Q1 FY26.
- This does not affect cash and will not repeat in later quarters.
- That is why the company discloses Adjusted PAT of INR 100 crore alongside the statutory loss.
Operationally, the business improved; the reported loss is an accounting clean-up linked to capital structure changes ahead of the listing.
How JSW Makes Its Margin: The Slag-Blended Model
A key feature of JSW Cement is its high share of GGBS (ground granulated blast furnace slag) and low clinker factor (51% this quarter). This model usually means:
- Lower kiln fuel intensity → cost resilience when petcoke/coal move around.
- Lower CO₂ per tonne → a sustainability edge that’s increasingly commercial.
- Potential pricing power in premium blended products.
Mix snapshot (Q1): Trade channel 52%; blended cement 67% of cement sales.
JSW Cement Q1 FY26: Capacity & Expansion
JSW is pivoting from a South–West–East footprint to a pan-India presence, with the North as the missing piece now being filled.
- Sambalpur, Odisha (1.0 MTPA grinding): Trial runs underway; target commissioning September 2025.
- Nagaur, Rajasthan (Integrated: 3.30 MTPA clinker; grinding 2.50 MTPA + 1.0 MTPA): Civil/erection advancing; equipment deliveries in progress; on plan.
- Talwandi Sabo, Punjab (2.75 MTPA split grinding): Major packages ordered; environmental public hearing completed; approvals in process.
Target scale: From 20.6 MTPA grinding / 6.44 MTPA clinker today to ~41.85 MTPA / 13.04 MTPA by CY2028+.
Q1 capex: INR 456 crore (incl. maintenance). Expect net debt to ebb as new capacities ramp and EBITDA expands.
JSW Cement Q1 FY26: Costs
- Raw material + Power & Fuel/ton: broadly flat YoY/QoQ at INR 1,847/ton. Efficiency gains offset selective inflation; Dolvi temporarily paid up for third-party slag, a watch-item.
- Logistics/ton: INR 1,098 (–5.9% YoY) on shorter hauls.
- Other opex/ton: down ~25% QoQ as Q4’s branding and shutdown effects rolled off.
- Employee cost/ton: normalised YoY (last year had special incentives).
Demand Still Constructive
Medium-term demand expectations remain solid, led by infrastructure (roads, rail, irrigation, industrial capex) and housing. Macro tailwinds—easing inflation, cumulative rate cuts, and public capex—support pricing/volume, though geopolitics and trade can still jolt fuel or freight.
JSW Cement IPO Performance
JSW Cement’s INR 3,600 crore IPO (7–11 Aug 2025) was subscribed 7.77x overall (QIB 15.8x, NII 10.97x, Retail 1.81x) and listed at a 4.42% premium on NSE. The company, among India’s fastest-growing cement players, plans to expand capacity from 20.6 MTPA to 41.85 MTPA by 2028. IPO proceeds will fund its Nagaur integrated unit, debt repayment, and growth initiatives, strengthening its pan-India presence and diversified product portfolio, including PSC, PCC, OPC, GGBS, and RMC.
Bottom line
Strip out the one-time CCPS accounting charge, and JSW Cement Q1 FY26 delivered the strongest operating performance—with better realisations, disciplined costs, and clear capacity catalysts. The thesis now pivots to on-time project delivery (especially in the North) and measured deleveraging as the company scales toward ~42 MTPA grinding capacity and a truly pan-India presence.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.