JK Lakshmi Cement Stock Gains Positive Outlook from Brokerage

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EBITDA per ton more than doubles year-on-year as realisations improve and costs remain steady; capacity expansion to 22.6 MTPA by FY28 to drive future growth.

By S JHA

Mumbai, November 7, 2025 — JK Lakshmi Cement Ltd reported a sharp rebound in profitability for the September quarter (Q2 FY25), with net profit at ₹80.9 crore, compared to a loss of ₹14 crore in the same period last year, according to a research note by ICICIdirect. The brokerage firm gave a positive outlook to the stock in its research note.

The company’s revenue rose 24.1% year-on-year to approximately ₹1,532 crore, driven by 14.8% YoY growth in cement volumes, the brokerage said.

Operating performance also improved significantly. EBITDA per ton surged 103.3% YoY to ₹733 per ton, supported by better realisations and a largely stable cost structure. On an absolute basis, EBITDA rose 133.3% YoY to ₹164 crore, though it declined 33.1% sequentially due to seasonal moderation.

“The company’s operational performance has improved substantially on a year-on-year basis,” ICICIdirect noted. “Going ahead, with a pick-up in demand and focus on cost savings, its overall profitability is expected to improve considerably.”

Strong Growth Visibility and Expansion Plans

ICICIdirect said volume growth visibility remains strong, aided by higher capacity utilisation and expansion projects. JK Lakshmi Cement is currently expanding its installed capacity from 18 million tonnes per annum (MTPA) to 22.6 MTPA by FY28, positioning itself to benefit from India’s ongoing infrastructure and housing demand cycle.

Company Overview

Founded in 1982, JK Lakshmi Cement is one of India’s leading cement producers, with a network of over 4,000 channel partners across the country. The company operates six cement plants, 21 ready-mix concrete (RMC) plants, and reported an annual turnover exceeding ₹6,000 crore as of November 2025.

Analysts believe the company’s combination of volume expansion, cost discipline, and improved pricing power will support sustained profitability in the coming quarters.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)