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JK Lakshmi Cement reported a 27.9 per cent year-on-year decline in its consolidated net profit for the first quarter of FY27, even as revenue and sales volumes recorded healthy growth. Higher operating expenses weighed on profitability during the quarter. The company said cement demand is expected to remain supported by continued infrastructure spending and institutional projects. However, it flagged fuel cost volatility and geopolitical tensions in the Middle East as key risks that could impact input costs. It also highlighted the industry's continued focus on improving operational efficiency and cost optimisation to support long-term growth.
JK Lakshmi Cement has reported a 27.9 per cent year-on-year decline in its consolidated net profit to INR 108.07 crore for the first quarter of FY27, compared to INR 149.88 crore recorded in the corresponding quarter of the previous financial year, according to the company's regulatory filing.
Despite the drop in profit, the company's revenue from operations increased 9.4 per cent year-on-year to INR 1,904.78 crore, up from INR 1,740.93 crore in the same quarter last year. The growth was supported by higher cement sales during the quarter.
JK Lakshmi Cement's total expenses rose 14.15 per cent to INR 1,780.04 crore during the quarter, indicating that rising costs impacted overall profitability despite stronger revenue growth.
The company's sales volume increased 8.17 per cent year-on-year to 3.59 million tonnes in the April-June quarter of FY27. Meanwhile, total income, including other income, rose 8.9 per cent to INR 1,920.21 crore.
Sharing its outlook, the company said cement demand is expected to remain supported by sustained government spending on infrastructure and continued institutional project activity across the country. It added that these factors are likely to provide a stable demand environment for the sector.
At the same time, the company stated that uncertainty surrounding fuel costs continues to remain a major challenge for the cement industry. It said persistent geopolitical tensions in the Middle East continue to influence crude oil and pet coke prices, making the input cost outlook uncertain.
JK Lakshmi Cement further noted that companies across the industry are continuing to recalibrate their operating models by improving internal efficiencies, optimising costs and enhancing productivity to strengthen long-term performance.
The company also said the overall outlook for the cement sector remains cautiously optimistic, supported by healthy demand fundamentals. It added that any moderation in geopolitical tensions could reduce pressure on fuel costs and help improve margins across the industry.
The latest quarterly performance comes at a time when India's cement sector continues to benefit from ongoing public infrastructure investments, urban development projects and steady construction activity. However, rising energy and logistics costs have remained key factors affecting profitability across several cement manufacturers despite healthy demand.
Shares of JK Lakshmi Cement settled at INR 571.35 apiece on the BSE after the results announcement, down 0.03 per cent from the previous closing level.
Source PTI
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