Central India 6mtpa commissioned.

On the Panna line, it was mentioned as 3.3 million tons in Q4 but now as 4 million tons. Why did it expand and how close are we to commissioning?

The capacity was always at 12,000 TPD - 4 million tons clinker capacity. What was 3.3 million was Line 1 at 10,000 TPD, following its increase from 8,000 TPD about a year back. Line 2 at Panna has always been a 4 million tons clinkerization unit.

What was the incentive booked in the quarter?

Incentive for the quarter was 85 crores. This is higher than last quarter's 75 to 80 crore range because in Q3, the Aligarh unit's annual ceiling got exhausted, so there was no subsidy for Aligarh in Q4. Now incentives are being received from Nimbahera Line 3 (for this fiscal only), and grinding locations at Aligarh, Hamirpur, Prayagraj, Ujjain, and Panna. Hamirpur, Prayagraj, Ujjain, and Panna are newer units so incentives will continue for a few more years. Looking ahead, approximately 300 crores of incentives is expected annually for next 3 to 5 years based on new expansions.

Other expenses were quite low in the quarter. What are the plans for marketing spends?

Marketing spends will be higher going forward. Major marketing spends like dealer tours are normally planned in Q2, which is the lean period. Other expenses will increase sequentially in Q2, along with scheduled maintenance of kilns and grinding expenses ahead of the festive season.

Given the de-bottleneck at Ujjain, what is the potential for de-bottlenecking at other locations?

As part of the expansion plan, 1 million ton capacity is being added at Hamirpur and Prayagraj. Additionally, there is a potential of about 0.7 million tons of de-bottlenecking in the South, which is being evaluated.

What are the plans for recent acquisitions Toshali and Saifco?

For Toshali, the company is evaluating alternate raw material options - either a long-term tie-up with the Odisha government or identifying areas for auction. There is an opportunity of 2.5 to 3 million tons if limestone tie-up materializes. For Saifco, there is an immediate opportunity to upgrade the kiln from ~600-650 TPD to 850-900 TPD. There is also a longer-term potential of 2 to 2.5 million ton expansion given the good limestone reserves, which will be evaluated in about a year.

What is the FY26 volume growth guidance given the strong Q1 performance?

The company is sticking to the guidance of about 20 million tons for this financial year.

What will be the clinker capacity at Panna after this expansion?

7.3 million tons at Panna after the expansion (Line 1 at 3.3 million tons and Line 2 at 4 million tons).

Will total clinker capacity including Saifco be close to 18 million tons by end of March FY26?

On standalone basis, it will be 19 million tons. Including Saifco and Toshali subsidiaries, total will be close to 19.6 million tons.

After commissioning all grinding units, will grey cement capacity be close to 32 million tons?

Currently at 25.26 million tons. Adding 6 million tons brings it to 31.26. There are certain de-bottlenecking opportunities in the South of about 0.7 million tons being evaluated, which if they materialize, would bring total capacity to 32 million tons by FY26 end.

What is the cumulative investment in paints and what capacity has been created?

Paint capacity is 60,000 kiloliters and total investment is close to 450 crores. The board has approved 600 crores total, so remaining investment is about 150 crores, to be completed by FY27.

Is the strong central India growth due to industry-level growth or JK Cement expanding dealer network ahead of upcoming capacity in eastern markets?

JK Cement has been actively expanding ahead of new capacity. The company expanded its market presence in Bihar in anticipation of the new grinding unit. They are already doing good volumes in Bihar and expect to reach close to 1 million ton in Bihar by end of this fiscal.

On de-bottlenecking potential in South of 0.7 to 1 million tons - will it be backed by clinker de-bottlenecking too?

Yes, the de-bottlenecking will be both on the clinker side as well as cement grinding across all locations in the South and other regions.

White cement margins seem to have declined sharply sequentially. How should one look at this segment given the upcoming putty capacity expansion?

White cement margins have declined sequentially but have now stagnated. The company expects margins to remain in the 15% to 20% range going forward. The putty expansion (6 lakh tons at Rajasthan) is necessary to maintain market share as the company targets 1.1 million tons of putty volume this year with 7% to 10% growth expected. Current capacity is barely able to meet peak season demand and some tolling has already started to address this.

With EBITDA approaching 2,500-3,000 crores annually, can the company handle two expansion projects simultaneously?

Yes, the company is shifting its approach from sequential projects (with 2-year gaps) to overlapping projects, targeting to reach 50 million tons by 2030. Going forward, the company plans to announce a new project every year, meaning two projects will be running simultaneously at any given time - not both announced at once, but staggered such that the next project starts while the current one is still ongoing.

Excluding clinker volumes, how did cement realization move compared to last quarter and how are prices now?

Prices on average have been mostly flat. South realization increase compensated for marginal pressure in North and Central. As of now, there is no significant drop in pricing - only marginal pressure on non-trade pricing. The monsoon period (another 1.5 months through August) needs to be watched before a clear picture emerges.

CAPEX was around 350-400 crores in Q1. What will be the full year FY26 capex and guidance for FY27?

Full year FY26 capex will be close to 2,000 crores. For FY27, considering normal capex and the newly announced putty expansion, capex should be about 600 crores as of now.

What is the consolidated gross debt and net debt?

Consolidated numbers are the same as standalone because subsidiaries don't have the borrowings and cash balance.

With the company now comfortable taking two simultaneous expansions, is there any internal cap on debt to EBITDA?

The company targets to keep net debt to EBITDA at 2 or below 2, whatever expansion they undertake.

What are the total paint, grout and adhesives numbers including EBITDA for the last fiscal?

Paint turnover for last fiscal was 273 crores and this quarter is 86 crores. Gross margin is about 30%. EBITDA loss was 45 crores last year, and this quarter the EBITDA loss is 10 crores.

Does JK Cement use synthetic gypsum and what cost arbitrage is derived from it?

The company uses a combination of gypsum - imported gypsum, chemical gypsum, and local mineral gypsum from mines. Nothing is manufactured captively. Imported gypsum is definitely more costly but helps reduce clinker consumption and allows use of more fly ash, so total cost economics are evaluated on a totality basis.

What was the rail share and fuel mix in Q1?

Fuel mix was 60% pet coke in Q1. Rail share was 11%.

If imported gypsum is used, it reduces clinker consumption and increases fly ash percentage. What is the current fly ash percentage?

The company can use fly ash up to 33%-35%. The actual percentage depends on each grinding location and what gypsum is available locally. The current average is below 35%.

Power and fuel cost showed a sharp increase QoQ and freight cost showed no savings. What are the reasons?

Power and fuel cost increased for two reasons: pet coke prices went up (average consumption rate increased), and clinker production was balanced in Q1 vs Q4 when some clinker from stocks was consumed. On freight, lead distance increased by 2 kilometers due to seeding of Bihar markets, resulting in a part-time freight increase of about Rs. 5-6.

Central India grew over 50% - is that company-level or overall industry growth?

This is the company's own growth in Central India. JK Cement is expanding its market share across UP, MP and entering Bihar, ahead of the new capacity coming in about six months.

On the cost saving plan of Rs. 150-200 per ton over next 2-3 years, does the FY26 target of Rs. 40-50 per ton remain intact?

Yes, it remains intact. During this fiscal, the company will get about Rs. 40 to 50 in terms of cost saving.

Green power share is currently at 52%. Will it reach 61% by end of FY26?

The company should be closer to 60% green power share by the end of this fiscal.

On the UAE plant, was the EBITDA positive of Rs. 15-20 crores per quarter achieved in Q1?

Yes, the Fujairah UAE plant has already reached that level. For the full year FY26, the UAE plant EBITDA should be around 80 to 90 crores.

On paint, the revenue target of 400-450 crores for FY26 and 600 crores for FY27 and breakeven by FY27 - does that remain intact?

Yes, that remains intact.

On other expenses, marketing and maintenance will increase in Q2. Is a Rs. 40-50 crores QoQ increase a fair estimate?

Yes, it could be around that region, though the exact number is not certain.

Assuming current putty profitability, what would be the rough IRR from the putty expansion project?

IRR will be over 15%.

Is the Rs. 300 crore annual incentive expected over next 3-5 years accurate based on current planned expansions?

Yes, that is what the company feels.

The incremental volumes in Central India - will the trade vs non-trade mix change and impact profitability?

Some non-trade volumes will come in from Bihar once the grinding unit is there, but the company is fairly confident of maintaining the trade-non-trade ratio overall.

The expectation that Asian Paints expanding its own putty capacity would reduce orders to JK Cement - has that started or will it be gradual?

Asian Paints is currently doing trial runs. The impact will start hitting JK Cement mainly from Q3 FY26 onwards as Asian Paints gradually reduces orders.

The cost of traded goods was much higher at Rs. 1.5 billion vs run rate of Rs. 1 billion. What is the reason?

Traded goods include goods being manufactured for value-added products including paints that are routed through the JK Cement standalone platform. When goods are transferred from the paint manufacturing plant to the JK Cement standalone books, they appear as purchase of traded goods.

Given strong Q1 volumes, is there upward bias to the 20 million ton FY26 volume guidance?

The company is sticking to 20 million tons because the monsoon is a lean period and the outlook needs monitoring. No upward revision at this point.

With lots of capacity coming in North, Central and East and JK Cement also adding 6 million tons, what is the pricing outlook for the next 1-2 years?

The market is also growing. Looking at North and Central as a combined market, there is an incremental requirement of about 12 to 15 million tons. As capacity gradually ramps up, there could be some periodic impact but no major competitive intensity that would significantly affect profitability.

Non-trade share has increased both YoY and QoQ. What is the demand outlook and pricing for the non-trade segment?

Government spending has driven non-trade demand. To maintain market share, the company needs to participate in the non-trade segment where demand is growing. Non-trade pricing has also increased over the last 2-3 months in tandem with trade pricing, with normal differential of Rs. 20-25 per bag between trade and non-trade, though this can fluctuate significantly to Rs. 40-80 per bag in specific regions.

The new Bihar grinding unit - will it also receive incentives?

There is an incentive scheme for the Bihar grinding unit. The company has already applied and should be getting certain incentives once the unit is commissioned.