Thank you, Ryan, and good evening, everyone. On behalf of PhillipCapital (India) Private Limited, we welcome you to the Q4 and FY26 call of JK Lakshmi Cement Limited.

On the call from JK Lakshmi Cement, we have with us Mr. Arun Shukla, President & Director, and Mr.

Sudhir Bidkar, Executive Director Corporate Affairs & CFO of the company. I would like to mention on behalf of JK Lakshmi Cement Limited and its management that certain statements that may be made or discussed on this conference call may be forward-looking statements based on current expectations, and also some future expected business developments by JK Lakshmi Cement's management.

Such statements are subject to a number of risks, uncertainties, and other important factors which may cause actual developments and results to differ materially from any management projection made on this call. JK Lakshmi Cement Limited and the management of the company assumes no obligation to publicly update or alter these forward-looking statements, whether as a result of any new business development, information, or future event, or otherwise.

Also, participants can download a copy of JK Lakshmi's Q4 and FY26 results presentation from the company website or from the stock exchange website. I will now hand over the floor to the management of JK Lakshmi Cement for their opening remarks, which will be thereafter followed by interactive Q&A.

Thank you, and over to you, sir. Yeah.

Thanks, Vaibhav. Good afternoon to everyone, and I have a little sore throat, forgive me for some disturbance in my voice today.

Anyway, I just thought I'll give you a brief update for the quarter and the whole year, how it looks for us and for the industry. Since we have already uploaded this quarter four performance, we'll have question-answers thereafter.

During the financial year 2025-26, pan-India cement demand grew by about 7%, reaching to about 450 million tons, estimated 480 million tons. That is an improvement over 5% YoY demand growth recorded in 2024-25.

Overall quarter four FY26 demand growth is estimated at about 6% to 6.5%, volume about 17% quarter-over-quarter driven by broad-based traction. Cement demand remained strong during December '25 till about February 2026, 8% to 10% growth, but moderated during March, which is estimated at around 5% due to lean sentiment amid Middle East conflict.

Supply side witnessed highest ever annual capacity addition of 64 million tons, the national effective capacity reaching now to 712 million tons in March 2000, at the end of March 2026. The highest capacity was added in the East, followed by North, South, and Central India.

West added the lowest capacity during the financial year. This led to an adverse impact on the overall demand-supply situation with pan-India capacity utilization estimated to be at around 69% and marginally lower than previous year.

On pricing side, cement prices witnessed partial recovery, particularly in non-trade segment during quarter four FY25-26 on a quarter-over-quarter basis after slipping beyond GST pass-through level in the preceding quarter, which is around 22nd September, 2025. Substantial capacity addition during financial year '25-26 and intense competition restricted meaningful price hikes.

Fuel costs surged sharply because of the geopolitical situation. Petcoke prices up by about 40% quarter-over-quarter to about $160 per ton level, and that is again quite fluctuating.

Coal price has also went up by about 30% quarter-over-quarter. Operating costs likely to decline in the last quarter for the entire industry due to operating leverage and stable freight and input costs.

Limited price hike constrained margin expansion despite cost efficiencies. Now on outlook part of it, what we see volume growth in FY25-26 was driven by of course housing demand, infrastructure, and is likely to remain in the range of about 5.5% to 6% or 6.5%, this is what our estimation is.

Cement demand outlook suggests slow down with pricing power staying weak despite sector consolidation. Energy costs are expected to rise by about at least ₹300, and packaging costs about ₹80 to ₹100 per ton, and that is going to impact maybe in coming quarters because of the geopolitical situation.

If the Middle East conflict is sustained for a longer period of time, then operational expenditure may go up even more than that. Capacity addition may slow down.

This is what we see in the backdrop of geopolitical crises. Industry to continue on efficiency improvement trajectory coupled with green focus.

Sustainability agenda in focus with key initiatives spanning renewable energy, thermal substitution, emission reduction, and EV deployment is the talk of today. AI and digital deployment is also emerging as a key lever of productivity and efficiency improvement.

Overall, we see that FY26-27 cement demand is likely to grow at about 6% also. This is just a brief top line of the industry for the whole year and quarter, and this is what we think as of today.

Now, since we have already uploaded our results, that is there with you, now we can have questions and answers over that. Thank you so much.

Thank you for the opportunity, sir. Two questions.

You spoke about the grinding capacity addition in FY26. What is the clinker capacity addition in your view?

Going forward in FY27-28, what sort of capacity additions are we talking?

So, '26-27 our estimation is about around 45 to 50 million tons, right? Last year it was about 64 million tons, and this is the cement capacity.

Now you have to apply whatever clinker factor is there on an all-India basis, which is maybe about 1.6 or so.

Okay. Grinding capacity.

Secondly, sir, we've seen about ₹300-plus kind of a cost increase. My view is that gradually we will see ₹150, ₹160 in 1Q and then the rest will be in 2Q.

What sort of price increases has the industry taken so far? Also, is there any color on demand which has been seen in the month of April and May?

April demand was better. May, when we started, there was sluggishness, and because typically, wherever we operate, I think laborers had gone to their respective places for election.

Now, there was some delay on account of their coming back. That impacted demand to an extent initially, but I see a little better demand 15th May onwards.

April was better. May, initially it was sluggish because of combination of reasons, and of course, I think there was a big uncertainty around this geopolitical conflict also.

That has got a rub-off effect on the cement industry as well. May 15th onward, I see a little bit green shoot in demand in the month of May.

Anything on price increases, sir?

Price increase, as I mentioned initially, that there was some price increase in non-trade segment in various areas. There is some trade price increase also, but as I said that those price increases are not at all kind of commensurating with the cost increase which we are foreseeing.

Okay. Thank you.

Thank you.

Thank you.

Good evening, this is Harsh here. My first question is on realization.

Last quarter, [unclear] realization kind of increased slightly [unclear] ramp up [unclear] Surat plant. In

this

quarter, hello? Go ahead.

Yes. In this quarter, in Q4 there was kind of ramp up in healthy pricing in the non-trade particularly, and we maintained a 100 bps share in the non-trade segment.

Why was our realization just 1% growth, why not higher? That is my first question.

Just to tell you, it's again our estimate. There are different level of price increases in different parts of India, right?

Perhaps our geography, the price increase was a little lower than other zones, and particularly I'm talking of East. East also, we have a limited presence in Chhattisgarh, which perhaps is the least priced zone in entire East, right?

In western part of India, Gujarat, initially I think there were no price increases, but I think I see a little bit of improvement in demand and prices are also going up now. I think our footprint wherever we operate, like North, West, and a very small part of East, the meaningful price increase was not there.

That is why price or NSR increase is about around 1%. This is just based on the geo footprint which we have, which is little different than those players who are there.

Got it. The second question, sir, is on the AMDC cancellation of 5% contract.

We have reported ₹140 crores in other non-operating income. Just wanted to know the certainty of recovery of this cash in July whenever there's a hearing in the High Court.

How sure are we?

We are not saying that it will come in July. We are saying that the next hearing is in July.

Okay. Over time, the matter is sub judice.

I don't know when it will come, but we are sure that it is recoverable. The

last question, sir, what's the clinker production in FY26 and sales?

Sorry. Clinker production in FY26?

Clinker production, yes.

92.26 lakh tons.

Sorry, sir, you're not audible. 92 lakh,

92.26 lakh ton.

Okay. That's it from my side.

Yeah.

Thank you so much, sir. I have a couple of questions.

The first question is, after the Assam project, which is the next project we'll be starting?

Come again, I think. Once again, come again.

After today's project? After the [unclear] Your

voice is

not clear. Sir, your voice is lagging, sir.

We are going to take Assam project after the East expansion.

Oh, after Assam. Okay.

The next question is, are we on track to achieve the 30 MT target by FY30? Will we be adding 9 MT capacity over FY27-30 after these two projects?

We are reasonably confident that we'll achieve 30 million tons by 2030, and our ongoing projects in East, we are well on track, right? We are confident that we are going to achieve that.

Okay. Will we be adding 9 MT capacity over FY27-30?

No,

no, your voice is not clear.

Hello?

Yeah. Am I audible now?

Yeah.

Will we be adding 9 MT of capacity over FY27-30 after these two projects?

Sorry, your voice is not so clear. Sir, am I audible?

Shashank, if you could please use your handset to ask a question? Audible, sir?

Hello? Go ahead.

I think, go ahead. Will we be adding 9 MT of capacity over FY27-30 after these two projects?

After two projects only, yeah.

Yeah. Okay.

Got it. Thank you, sir.

Thank you so much.

Thank you for the opportunity, and congratulations on the good performance. I have a couple of questions.

My first question is that in the Q4, as one of the participants mentioned, that company derecognized some crores of investment in Assam following the cancellation of the mining leases. Was the limestone mine assigned for the Assam greenfield plant, and can the management clarify on this?

Also, is the Assam integrated plant still viable? Are you actively pursuing an alternate limestone source, or has the plan been revised to a grinding unit that would source clinker externally?

What does this mean for the FY29-2030 timeline and the earlier indicated 2.5 MTPA capacity target?

See, earlier the AMDC had granted that MDO contract to the consortium, which was cancelled subsequently. Out of the three mines, we were able to get two mines under the auction route in JK Lakshmi.

Based on these two mines, which have reserves of about 250 million tons, we are pursuing our Northeast foray. Which will come after the Durg.

Thank

you. That was really helpful.

My second question is, our ramp up and utilization on new capacities in Gujarat has been quite slow. What have been the factors, and by when do you expect utilization to reach regional averages?

Surat ramp up rate is well on track. In fact, we commissioned around end of September, 22nd September, 2025, and we are utilizing capacity more than 60% already.

We are well ahead of ramp-up plan of about 18 to 24 months. Probably, I think we'll reach even higher capacity this year, maybe 70%-plus.

Sir. Thank you.

That was all from my side.

Thank you.

Good evening, sir. My question is on your capex.

For last two years, you have incurred around ₹600 to ₹700 crores with large capex missing, like ₹1,000 crores kind of capex each year for the ongoing East expansion. How do you look at overall capex for FY27 and '28?

This

next two years will be quite high capex. We expect total capex in FY27 to be around ₹1,600 to ₹1,700 crores, and close to ₹2,000 crores in the next year, when we will be also we already started, but it will ramp up the land acquisition and the project in Kutch and Nagaur.

Timelines of East expansion, can you repeat that, please?

We are expecting the Durg first to come by FY28, towards the end of that year, FY28, and one year later, the Northeast project should also be there, and followed by the greenfields thereafter.

Sorry, Durg clinker by FY28, and what about the split grinding unit, by what time?

This is Durg including the grinding units.

Durg plus grinding unit by FY28 end, and FY29, we are missing Northeast clinker?

Clinker and the grinding together.

Okay, 1 million ton Northeast.

We have not finalized the size, but we'll do that, maybe around slightly higher than 1 1.5, and thereafter Kutch and Nagaur in that order. Kutch will come earlier than Nagaur, because Nagaur there are issues in the land acquisition phase, that is taking time.

Kutch will get the priority. That will come ahead of Nagaur.

In Nagaur, in fact, additional issue is of Aravali issue. Until and unless that Supreme Court decision comes, I think that is why there is some delay on Nagaur part of it.

Kutch is going to be even before.

Kutch and Nagaur is a FY30 onwards capacity, right? Or FY29?

No, no, FY30.

This is for sure, after '30.

FY30.

Sure. Another question on like you exited this year, last year, two years, you had EBITDA per ton at like close to ₹1,000.

This year, we are exiting at like ₹750 odd in fourth quarter, given in light of cost pressures and pricing that has happened. How are you looking at EBITDA per ton for the full year?

Is that like past year target of ₹1,000 which we were making, is

that clear? ₹1,000 per ton is, of course, the anchor.

If you really look at cement EBITDA for even other leaders also, that has also gone down, right? Definitely I think our ambition is to reach to ₹1,000 EBITDA, but definitely we have been bridging our gap up with the leaders in the last couple of years and that journey is continuing.

For that, we are taking lot of measures which are internally controlled. I think I have said all those levers even before.

Major levers are of course, I think, on top line part of it. I think last year if you see our volume growth, and even premium product, that has been at a good level.

Despite volume growth, I think our volume growth in premium product is also good. We are working on logistics.

We are extremely focused on now renewable energy. We are close at 46% of renewable energy.

We do have plans to go even beyond. That is another lever.

Then, digital is also being deployed in our manufacturing units, particularly in pyro process and grinding units, where we are deploying digital AI/ML capabilities, enabling them operations to have AI/ML deployment, which is going to help us to improve efficiency and reduce cost. All those actions are already there, and we are relentlessly working on that.

That remains that at all we have not deviated from that, and whatever bridging of the gap which we have been able to do in the last couple of years majorly goes to all those internal actions and efficiency levers we have worked on. That is going to continue in coming months and coming years also.

You're definitely going to see that our gap is going to further reduce with leaders in this FY27, and I'm sure that it is going to reduce at least by another ₹50 to ₹75, for sure.

Some of the industry leaders have reported ₹1,150, ₹1,250, ₹1,000. Which peers are we comparing to, because our gap seems to be higher this fourth quarter versus last year fourth quarter?

We are looking at grey cement EBITDA because some other cement manufacturers, they do have portfolio of other businesses also within that, right? If you compare ourselves with grey EBITDA, then we are very much there, right?

I'm sure that all of you must be doing that calculation as well, okay? I am in touch with some of you, and we appreciate that analysis done externally also.

If you look at that lever, then we are very much there, that's within our radar. That gives us confidence that we are in the right direction, and that gap is going to get reduced even further.

Just compare grey cement versus grey cement, because we do not have other than grey cement as of now. That's helpful.

Another thing, I think, incentive also we only kind of factor when we realize that. We do not take incentive on accrual basis.

That is also one of the differentiator.

Thank you.

Hi, sir. Good evening to the team.

Sir, my first question on the housekeeping one, could you share the non-cement revenue and the RMC revenue for this quarter?

Yes, sir, very much. Non-cement revenue was

Is ₹169. ₹169 crore.

RMC?

Sorry?

RMC revenues?

It's ₹82 crore.

₹82 crore. ₹82 crore, okay.

Coming to the capex plan which you have outlined, ₹1,600 to ₹1,700 crore this year and ₹2,000 crore odd for next year, if I do the calculation basis on the cost pressures and all the industry is reeling through, I see your net debt increasing by at least ₹1,500 crore over next two years. Over next two years, and that would shoot up your net debt level significantly.

How do you plan to manage that? Second question, you are among the lowest cost quartile operating cost level.

I believe if I do a line-by-line matching your numbers with UltraTech, you are better off in terms of fixed fuel cost, you have a highest share of green power, your overall cost is comparable to UltraTech's operating cost. Margin is different, and obviously the difference is on the realization.

Even trade mix, you are slightly off versus their numbers in terms of trade. What we understand is there is a sharp gap of ₹400 to ₹500, and that is where I'm coming from that you may have limited headroom now available on your costing front to squeeze your cost further.

What efforts are we doing to increase our price premium or price positioning whereby the margins can sustainably move north of ₹700, ₹800?

Rajesh, are

you there? Yes, I can hear anything, sir.

Hello?

Am I audible? I think there is some disturbance in the line.

Yeah. Now you're audible, sir.

Please tell me.

Rajesh, as I mentioned before, I think this is a focus area for us, how we are going to get our price fetching level to our competitors in the market. This has been our areas, and we have worked that past maybe a year also.

We are going to work on improving our price, and for that we do have that placing different brand also in the market. In sense, we have rejuvenated our legacy brand, launched Green Plus.

That was the whole idea. Lakshmi holding a good place in the market.

We improve upon that. Over and above, we have already launched LC3, what we call in limestone calcined clay.

How we are going to ramp that up, that is also a plan for us. That is not only a green cement, but price is as good as ordinary Portland levels.

We are working on that as well, as to how we are going to get better volume from LC3 at the right price. The strategy there, Rajesh, is right product, right price, and right market.

I do feel that we to further improve.

On the net debt part, given the large capex we're planning for next two years?

Net debt will peak out. You are right, there will be an in flow of crores.

Because that is peak capex, then the additional EBITDA from the Durg expansion, moment that comes in, that will sort of normalize.

Sir, when you mentioned the clinker volume, we see the clinker utilization in FY26 is close to 93%. For next two years, given that your Durg expansion would be back-ended in FY28 end.

For next two years, are we looking at sub-industry volume CAGR? CAGR I'm talking.

If you deliver 5%, 6% volume growth this year, chances of a sluggish volume offtake be expected in FY28?

We are going to grow higher than the industry in FY27 as well, and there are reasons for that. One, as I said that we have reached about 60%-plus capacity utilization in Surat, which we are going to ramp up, right, one.

Second, Udaipur, that capacity utilization, we need to take it up, right, second. Third, we have that headroom in North as well.

These are the areas or the plants where we do have that headroom to grow this year at least higher than industry.

Are you looking to purchase clinker externally, sir, because at 93% clinker utilization, and suppose we expect industry to grow at 7%, 8%, would we have enough clinker to support that growth?

I think we do have enough clinker with us. Clinker, because last year

Same question, sir, in terms of clinker availability given that we're already operating at 93% utilization and given if the industry grows at, say, 7% odd, 7%, 8% odd and we are targeting say 8%, 10% growth, how would that be achieved? Yeah.

Even if we take, let's say, current product mix which we have, Rajesh, we'll go beyond 14 million tons, around 14.2 million tons, right, with the same level of capacity utilization of clinker. If I improve blended cement ratio, which was 62% last year, if I take to 65%, and a 94% of clinker utilization to about around let's say 97%, 98%, and a clinker which we have sold last year, close to about 6 7 lakh ton, 7.5 lakh ton, then we do have that enough capacity to grow at that rate.

One, improvement in blended ratio; second

Your voice is breaking up sir again.

Sorry, I think there is some. Am I audible?

No. You're audible, but in between it's cracking up.

Sorry for that. These are the three things.

Blended ratio, further improve in clinker utilization, 94% to let's say 97%, 98%, and the clinker which we have sold last year about 7.5 lakh ton, that we don't, and we are there. We have calculated, and we are there to grow at that

rate. Lastly, if you could share this Q4 clinker volumes?

Yeah. Just a sec.

Clinker production was 24.72 lakh tons.

Clinker sale in this quarter?

Clinker sale was 2.2 lakh ton.

2.2 lakh ton. Okay.

That's all from my end, sir. I wish you all the best.

If you have

any question, you can connect even after. Thank you so much.

Thank you very much. My question is on the recent acquisition update after acquiring about 80% of the share of the market.

What is the latest status of the liability settlement? Are the liabilities been settled, and the promoters got paid?

Can you repeat your question? It's not clear, please.

Voice is very feeble.

My question is on the latest update on the recent acquisition by Axis. Yeah.

Where the transaction was supposed to be closed by the end of March where 80% of the shares were acquired in off-market. What is the latest on the settlement of the recent liability and the payment to promoters?

Yeah.

You see this transaction was consummated at a total consideration as we mentioned of about ₹19 crores and takeover of certain past liabilities. Those past liabilities have been settled in the month of March at a figure of around ₹12.5 crores.

That is first part. Second, regarding out of ₹19 crores, which was the consideration broken up into two, three parts, we have paid about ₹1.5 crores towards acquisition of shares.

The other part, which is the non-compete fees of about ₹10 crores, gets paid after the entire transaction gets consummated. Additional about ₹11.5 crores is required to be injected as capital into the company, out of which we have done about ₹3.5 crores.

We are hopeful that this transaction will in entirety get completed in this quarter only. Most important was the settlement of the liabilities which were taken over, that has been settled at ₹12.5 in the month of March.

Hello.

Thank you very much. That's it.

Thank you.

Thank you, sir. Thank you so much.

I just wanted to understand, what is the current operational capacity as of now? For the financial year, how much capacity addition expect that will be operationalized?

We have current capacity of about 18 million. Right.

Last year, capacity utilization was 73%. Okay?

As I said before, in the month of September, we added 1.35 million tons. That is why the full-year capacity last year was only 17.

7 million tons. This is what the capacity is.

Any

capacity that we are going to add in this financial year as well?

This financial year, no. No capacity addition, and that is what earlier speaker was about growth.

I explained him, we do have that headroom and the other levers which we have in our hand. This year, we do not have any capacity addition.

How much EBITDA per ton we are expecting in this full year considering all this geopolitical war crises and all?

I think quite tons of questions. I think maybe next quarter I'll update you.

Just give me another quarter because I think that depends on a lot of external environment, which is beyond our control. Definitely, I think we'll do better than industry in terms of all parameters.

That we are confident about.

Although you have given the answer, you are still targeting 30 million by 2030. Is it right, or we are planning to increase the target or reduce it?

We are on course.

We are on course. Sir.

Thank you, sir. We will meet in next concall.

Thank you.

Good evening, sir. Thank you for taking my question.

I wanted to know given the elevated fuel cost and rupee depreciation, how do you see input cost trending over the coming quarters and what will be the impact on margins? Also, would the recent price hike be sufficient to offset this cost pressures?

Also, additionally, what demand trends have you observed in April and May across your key markets?

I'll just answer one by one because you combined two, three questions together. First, on cost part of it, just to let you know that we were dependent on imported coal and petcoke from outside in north part of India.

East, I think we do have fuel which is indigenous. East will not have much of an impact excepting maybe your explosive cost, fright cost, that has gone up.

North part also, we have done quite a bit to kind of contain the cost increase by changing the fuel mix. We are kind of changing the proportion of petcoke versus coal in our northern plants also.

That way, we are going to mitigate the cost increase to an extent, which is coming on account of imported coal and petcoke. That is one thing which we are doing.

Even if that impact is going to be higher, we'll try to mitigate it to an extent by changing the fuel mix in our northern plants. Right?

If you look at last quarter, we had this fuel cost of about 1.58.

1.54.

1.54, yeah. 1.54.

Right? I think this will definitely go up despite our effort to kind of change the fuel mix.

This is one of the mitigating measures we are taking just to preserve our margin to an extent. Second, also you asked about our core markets.

I think overall India, I see estimated growth of 6%. Our markets are also going to grow in the similar line.

Maybe I think geographical here and there, some percentages here and there would be there, but as I said before, we'll grow at a higher rate than industry, which is estimated to be growing at 6%. Right.

Just to summarize your answers, one action is to mitigate the cost increase to an extent by changing the fuel mix. Second, of course, I think working on some of the levers to further mitigate that impact.

Typically on top line by which I mention blended cement, maybe trade percentage, working right product, right market, right price. Those things we are going to take.

On growth part of it, definitely I think we'll grow similar line and even a shade better than industry.

Thank you. It was very useful.

Thank you so much.

Can you hear me?

Please use your handset to ask your question.

Can you hear me? Hello.

Yeah.

Sir, I had a couple of questions on our costs. Sir, you guided for ₹300 per ton sort of a run-rate increase on energy costs and ₹80 to ₹100 increase on packaging.

What sort of numbers will we see in Q1? Will the hit be entirely in Q1, and how much can we mitigate through our cost measures?

What we see, maybe the ₹300 impact would come somewhere around quarter two. This quarter, definitely I see somewhere around maybe ₹100 to ₹120 or ₹130 per ton.

Versus ₹400 per ton that is pending in packaging and energy, right?

Yeah.

Okay. Sir, if ₹100, ₹120 per ton sort of a number we are seeing a hit in Q1.

To mitigate that, what sort of price increases has the market marked till now?

As I said before, non-trade prices have gone up in various markets. Trade prices are also inching up, but not to that extent.

Now demand, I see, is getting better. As I said that May beginning was a bit sluggish.

I see a little better demand in latter part of May. Probably now, since demand is improving, prices also will inch up even in trade segment also.

Trade, non-trade prices also will go up, and I'm confident that since demand will support, we'll be able to recover or pass on majority of the cost increase which we are going to have. This is what I foresee as of today.

That depends on a lot of external factors, right, how demand behaves and how competitive intensity is. That depends on a lot of things.

This is what my fair estimation is.

Fair enough. Could you share blended mix in Q4 and FY26?

Blended was 62%.

For FY26? FY26, for the whole year, it is 63.

62. 62.

Perfect.

Okay. Perfect, sir.

Those were my questions. Thank you so much.

Okay.

Thank you, sir. Thank you.

Hi, sir. I have a couple of questions.

One just a curiosity or maybe a request. Sir, do you have any kind of a problem with me because maybe the organizer not allowing or maybe allowing at the end of the call to ask the questions, and if you wish that I do not ask the questions, I don't mind.

Just No,

no, sir. Sorry, sir, if you are getting that impression.

Please, I think ask as many questions you want. I will invite you to come to my office.

All else, I'll come to you and meet you, sir. You're most welcome.

I would love to meet you, sir.

Please. Let's do that.

Let's meet as early as possible. I'm very because I get a lot of insights from you.

That really helps me.

Thank you, sir. Couple of questions.

Most of things have been covered. Just continuing previous parts question, broadly understanding in Q1 if we see ₹120, ₹130 cost and maybe a ₹50, ₹70 increase, maybe a ₹30, ₹50 kind of a and plus some operating deleverage.

Maybe a ₹80 kind of a impact broadly at current level is the way one can look at?

Shravan ji, as I said, I think that depends on a lot of things. Maybe I think if demand supports, then I think we'll be able to recover full cost increase also.

We're not too sure about it. Very difficult to really kind of give an estimation.

Broadly we think that yes, we have not been able to kind of increase our prices to the extent cost has gone up. If demand supports, then maybe I think we'll be able to recover also.

We're not sure as of today. What we are focused as of now at JK Lakshmi Cement is to work on all those things which we have control over.

Which I said couple of things which we are working on. Like to mitigate the cost, Shravan, we are working on fuel mix in our north plant, right?

We are working on further improving our renewable energy, and improving TSR, and all those low-cost fuel. Several actions we have already started taking.

Our focus is to really work on all those things which we can control. Let's see, if things go all right, then maybe I think we'll be even better.

Got it.

Got it. Sir, a couple of data points.

Non-cement margin would be for fourth quarter would be how much, 4%? 4%,

4%. You are right.

You are absolutely right.

AAC block revenue would be ₹58, ₹60 odd crore for this quarter? Right.

Oh,

Shravan, you are absolutely on the dot, ₹59 crore.

Okay. Just wanted to know, this Durg ₹3,000 crore that capex total we have, how much we have already done by FY26 March, and how much already spent?

We have done about close to about ₹500 crores.

Okay, ₹500 crore is done. Roughly, let's

Including the railway siding.

Yeah. Roughly how we look at, obviously we will still be finalizing in terms of the capacity for the Assam.

Roughly if I have to look at, sir, for FY28 and for maybe by FY29, now we are saying FY30, obviously the Nagaur will come in. Broadly, if I leave apart the Nagaur, how much for FY28 and FY29 broader number, just wanted to understand?

As I mentioned in response to earlier question, FY27 we are seeing about ₹1,500 to ₹1,700 crores of capex, and then ₹2,000 crores at least in FY28. It will be 1,300 to 1,500 in FY29.

Got

it. Sir, just one thing.

Intangible assets, which was ₹329 odd crore in FY25 in September, and now it is just a ₹5 odd crore. Any write-off?

Which asset you're talking about?

In balance sheet, intangible assets that we have. That was in consolidated balance sheet, it was ₹329 odd crore was there, which is now is just ₹5 odd crore.

Just wanted to know. See,

because you would have read in our notes now, we have in the console results, we have derecognized the mining rights now because of the cancellation of the MDO. That's how ₹329 goes down to ₹5 crores.

That is appearing in the notes.

Got it. Lastly, sir, two data points.

Lead distance for fourth quarter and power cost, would it be the similar 5.37 per kilowatt for fourth quarter?

Lead distance, Shravan, is 1.44. What is the next question?

Power cost for fourth quarter. 5.37 was in third quarter.

5.34 5.79.

5.79. 5.79.

Okay. Thank you, and all the best.

Thank you, Shravan. Thank you so much.

We

Hello, am I audible?

Yes, yes. Yes, Rajesh.

Yeah. I think you mentioned for this Durg project, ₹3,000 crore, till FY26 end, we have incurred ₹500 crore.

Is this understanding correct?

Yeah.

Okay. Sir, if we just look at the Durg project capex, for next two years, how would that be phased out in terms of cash outflow?

As I mentioned, including the land acquisition and also the Northeast project, together we have talked of ₹1,500 to ₹1,700 in response to your earlier question, ₹2,000 in FY28.

No, I just wanted to understand, even if you want to delay the Northeast project and prioritize the Durg project, in that case, how the capex number would look like?

We will not delay.

We will not be delaying. Okay.

Sir, this Sirohi TSR project, by when is that expected?

TSR, I think phase one is over. Phase two, we have not yet taken up because the availability of alternate fuel is not that great around that plant.

Right now I think phase one we have completed. Phase two also we are contemplating, but we are not yet finalized.

Okay. The railway siding Durg second phase, why is that work going on on that?

I think we are dependent on lot of other agencies. Like we have to put up one flyover, and that passes through one PWD road.

That we have to really get it done through them only. There is delay from their end.

Another one is strengthening this existing track, which again with this Steel Authority of India Limited. Then I think that will get done.

Nevertheless, I think our operation is going on full swing. There is no issue on that.

Once they are kind of ready with all those things, then we kind of do that. There is no delay from our end.

Understood. Sir, this non-cement revenues, there were earlier targets of growing this at 20%, 25% CAGR, but last two years, we are seeing around 10% revenue CAGR.

Any thought on that, why we are not aggressive in this segment, the non-cement revenues?

Non-cement revenue you're talking, Rajesh?

Non-cement revenue, sir.

I think we are going as per plan. Yes, I think ready-mix plant which we wanted to set up, I think we are a little behind our projection.

In AAC area, I think we are kind of as per the plan we are going. In other products like plastering solution, tile adhesive, we are growing well.

Though I think revenue-wise you'll not find that much, but I think that gives a decent margin. Here I think we are as per plan only.

Ready-mix has not gone as per the plan, and the reason was also because we want to grow in the area where we have our cement footprint. The fact is that ready-mix you have got margins also on lower side.

We focus on other than RMC so that we get better margin. Though I think revenue-wise, we are a little lower.

That was a very conscious and deliberate call.

Understood. Sir, lastly, when you talked about the early Q1 outlook and you said that April was good, May started off on a weak note.

Overall for the quarter, what sort of growth you're looking at, 5%, 6%, given that the market has been subdued? Cost pressure, you're looking at close to ₹150 in Q1, QoQ, and around ₹50 to ₹70 cost pass-through happening.

Is this understanding correct?

Growth-wise, Rajesh, though I think May initial was little sluggish, but overall I think April-June is going to be better and will grow in alignment with the projection. I don't see is going to be an issue in terms of growth, right?

Okay. And Yeah.

Cost impact and margin. Please go ahead, sir.

₹120, ₹130 per ton, that impact will come in this quarter. Next quarter, I think impact is going to be even bigger, right?

The whole idea is, if demand picks up, then perhaps I think we'll try to recover this from the market. I suppose that now demand is little looking up, going forward.

I think you do have other challenges also because of petrol and diesel hike. That is another element which is coming now into force, and that is going to impact your logistics cost.

If you realize, because in the last maybe a week or so, you have already seen that about ₹4 per liter increase, right? That about, let's say, ₹15 to ₹16 a ton if you really.

Yes.

Yeah.

I think, see,

let's wait for some time because cost and other external scenario is so volatile, it's very difficult to really kind of calculate as to what is going to happen and how much we will be able to pass on.

No, I was just only checking if on these two months, April, May, have you been able to effectively pass on the cost increases, or that has been suboptimal?

April, I think thanks to our inventory also, at least we have been able to do that in April.

Understood. That's all from my end.

All the best, sir. Thank you.

Rajesh. Thank you so much.

Sir, just a couple of quick questions. One thing, you said on the call, ₹120 of cost of inflation expected in Q1.

You are not adjusting for the price increases, if any, right? I just want to confirm.

You said ₹120. You said ₹120 would be the expected cost inflation in Q1.

That's what you indicated in terms of the cost inflation for the current quarter. You're not adjusting this for any price increase which potentially could be passed on, or which has already been passed on, which is rolled back.

This is only purely the cost inflation, right? ₹120 is purely the cost inflation, what you're saying.

Cost inflation, purely cost inflation, right.

Okay. Sir,

yeah. Go ahead.

Please continue, sir. Please continue.

No, no, I'm through. I think.

Okay. Second question, sir, was that we recently got to notice that you have now partnered with some manufacturers for iron rods, etc.

JK Lakshmi steel rods, etc. have also been marketed and sold in the market.

What's the management thought process? Are you going to get into multiple building material products like this further more, anything more in the anvil?

What is our management thought process of getting into newer product lines, and what is the kind of income you are expecting from all these businesses?

Vaibhav, I think first I need to correct you. We are not at all going into iron ore area, right?

No, no, the steel rods, I'm saying. The which were

I think we are piloting it because if you really look at distribution network of all those products like TMT and all, that has quite a synergy with cement channel network. Right.

The idea is that, can we leverage our brand strength? We are not at all going into manufacturing, we are not at all going into distribution.

We just wanted to pilot it if at all we can leverage that brand strength which we have in different markets. That is at a very, I would say, a nascent stage, a very initial stage.

I'll not be able to comment on any

Any broader management thought processes also to get into more products in the future, or this is only, well, after testing of this product only you will take a final call as to what needs to be done?

Definitely the strategy is to go to adjacent building material, for sure, because that we want to give our customers portfolio of product. We definitely want to go into adjacent building material.

You see that tile adhesive, plastering solution which we gave, and then AAC block, RMC, I think all this adjacent product only, which is being used in building material. Definitely, I think you do have n number of other products also which we may explore in future.

Strategy-wise, we do have that thought.

That's what I wanted to know. I didn't mean manufacturing, sir.

I just meant you are tied up with some manufacturers and you are just using your brand and charging a royalty kind of a brand fee. That's what I was commenting.

Okay. Thank you, sir.

That's all from my end. Thank you, everyone, on behalf of PhillipCapital (India) Private Limited, and thank the management of JK Lakshmi for the call and also management for participating, joining the call.

Thank you very much, sir. Line may now conclude.

Thank you, Vaibhav.

Thank you so much.