JK Cement Ltd. share price target

We revise our rating from HOLD to BUY and roll over our estimates to FY28.

Notwithstanding weak pricing environment and rising petcoke prices, strong volume growth and cost optimisation measures aided the company’s quarterly performance.

EBITDA/ton to improve led by cost savings initiatives over the next 2-3 years: Company's EBITDA/ton stood at 1017/ton in 9MFY26, up ~14% YoY due to improvement in overall cost structure and positive operating leverage. Going ahead, we expect company's operational performance to improve, led by improvement in realisation, focus on cost saving measures primarily led by increase in share of green power to 75% by FY28E from 52% at present, increasing usage of captive coal, optimising logistics cost and positive operating leverage. The company has also guided for 150-200/ton of cost...

JK Cement’s (JKCE) 3QFY26 EBITDA was up 13% YoY to INR5.6b (in line). OPM contracted 70bp YoY to ~16% (-90bp vs. estimate). EBITDA/t declined 7% YoY to INR935 (-6% vs. estimate).

JK Cement (JKCE) remains a premium imperative story - being among the few companies with clear visibility to double capacity in next five years.

Q2FY26 performance: Consolidated revenue increased by 17.9% YoY (-9.9% QoQ) to Rs 3019.2 crores, mainly led by 14.6% YoY growth in blended cement sales volume (to 5 mtpa, -10.7% QoQ) and improvement in blended realization by 2.9% YoY (+0.8% QoQ). EBITDA/ton improved by 37.2% YoY (-27.3% QoQ) to Rs 891/ton. Subsequently, absolute EBITDA is up 57.3% YoY (-35.1% QoQ) to Rs 446.6 crore....

JK Cement’s (JKCE) 2QFY26 earnings were in line with our estimates, with EBITDA growing ~57% YoY to INR4.5b. EBITDA/t surged ~37% YoY to INR894 (vs. est. INR934).

JK Cement (JKCE) has embarked on an express growth track, offering strong visibility of 16% CAGR capacity creation over FY25-30 (vs. FY15–25’s 9%).

We change our rating from BUY to HOLD on the stock.

Grey cement volumes at 4.98mt (ex-clinker volumes) rose by ~15% YoY, driven by new regions growth in the East and Central India

JK Cement (JKCE) reported standalone EBITDA of Rs6.75bn (up 41% YoY, albeit down 9% QoQ), beating our estimate (Rs5.9bn).

JK Cement (JKCE) reported strong EBITDA growth, up ~41% YoY to INR6.9b (in line) in 1QFY26, led by robust volume growth (~+16%) and improvement in realization (~+3%).

With 25.26m tonnes cement capacity now, JK Cement’s announced expansion would take it to 32m tonnes by FY26. Its long-term target of 50m tonnes by 2030 remains.

JK Cement’s (JKCE) stock performance has played out broadly in line with our expectations, reflecting its strong track record of consistent operational delivery and disciplined execution.

We maintain our BUY recommendation on the stock.

Grey cement volumes at 5.3mt (ex-clinker volumes) rose by ~14% YoY as presence in key operating regions like Central India helps