J K Cements Ltd Management Discussions

far. Further, the allocation for PMAY-Urban has increased by 182% over the revised target for FY 2025-26. The scheme aims to construct 2.24 Crore urban houses, witRs. 1.22 Crore houses sanctioned to date.

Infrastructure segment

The infrastructure segment grew by ~8% in FY 2025-26, supported by strong capital expenditure across core infrastructure ministries, including Railways, Road Transport and Highways, and Rural Development. Infrastructure capex for the upcoming year is estimated to be 17.7% higher than FY 202526 levels, largely driven by the Governments focus on ensuring logistics efficiency and advancing the transition to green energy.

• An 8% increase in allocation to the Ministry of Road Transport & Highways to Rs. 3.10 Lakhs Crores

• A 73% surge in the budget for the Pradhan Mantri Gram Sadak Yojana over the revised target

of FY 2025-26, with a continued focus on the construction and upgradation of existing rural roads to enhance connectivity

• An 8.3% increase to Rs. 1.22 Lakhs Crores in the budgetary allocation for road infrastructure over FY 2025-26 levels. In addition, the allocation to NHAI increased by 10% to Rs. 1.87 Lakhs Crores, with a portion of the funds earmarked for the completion of pending projects under the Bharatmala Pariyojana programme

• A 10.5% increase in allocation to Railways for the development of new railway lines, dedicated freight corridors in the east and west, and high-speed corridors connecting key economic centres

Industrial and commercial segment

Growth in the industrial and commercial segment continues to be driven by private sector investments, PLI schemes, industrial capital expenditure and commercial real estate development. Between FY 2025-26 and FY 2029-30, average annual industrial capex is expected to be around Rs. 7.1 Lakhs Crores, with PLI-linked and emerging sectors accounting for ~27% of the projected investment. Additionally, the rising demand for commercial real estate, driven by the expansion of the IT/ITeS sector, coupled with the establishment of MNCs, Global Capability Centres and corporate offices, is expected to support demand in the long term.

PERFORMANCE OF INDIA OPERATIONS

During FY 2025-26, the industry registered high single-digit growth owing to a surge in demand across the housing, infrastructure and commercial segments.

Operational and financial performance (Standalone)

• Grey Cement, White Cement and Wall Putty volumes increased by 15% to 22.46 MnTPA from 19.52 MnTPA in 2024-25

• Revenue from Operations grew by 16% to

Rs. 12,945 Crores, up from Rs. 11,187 Crores in FY 2024-25

• EBITDA surged by 18%, reaching Rs. 2,318 Crores from Rs. 1,968 Crores in FY 2024-25

• Net profit improved by 21%, totalling Rs. 1,033 Crores, compared to Rs. 851 Crores in FY 2024-25

Expansion and acquisition in the grey cement business

• 6 MnTPA expansion in Central India

- During the year, the Company commissioned a

3.3 MnTPA clinker facility at Panna and added 6 MnTPA of cement capacity, comprising 3 MnTPA at Buxar and 3 MnTPA across Panna, Prayagraj and Hamirpur, witRs. 1 MnTPA added at each location

• Debottle-necking

- 1 MnTPA capacity at Muddapur & 0.5 MnTPA at Ujjain

• Acquistion

- Acquired 60% Stake in Saifco Cement Private Limited

The total grey cement capacity has now increased to 32.26 MnTPA.

32.26 MnTPA

Total grey cement capacity

7 MnTPA greenfield expansion in North India (ongoing)

• Construction of a clinker unit with a capacity of 4 MnTPA, along with a cement grinding unit with a capacity of

3 MnTPA at Jaisalmer, is progressing as planned and is scheduled to be completed in H1 FY 2027-28

• Our 2 MnTPA split grinding unit at Bikaner is expected to be commissioned in H1 FY28

• For the 2 MnTPA split grinding unit at Bathinda (Punjab), 100% of the land has been acquired, and orders for the main plant and machinery have been completed. The project is scheduled to be completed in H1 FY28

• The total project cost is estimated at approximately

Rs. 4,805 Crores, of which Rs. 914 Crores had been incurred as on 31st March, 2026

Construction of a wall putty plant with a capacity of 6 Lakhs tonnes (ongoing)

• Construction of the wall putty plant at Nathdwara is progressing as per schedule and is expected to be completed in Q2 FY27

• The project cost is estimated at Rs. 195 Crores, of which Rs. 100 Crores had been incurred as on 31st March, 2026

JK CEMENTS SUSTAINABILITY JOURNEY

As part of its commitment to sustainable growth and nationbuilding, JK Cement has aligned its growth strategy with global sustainability priorities while contributing to Indias transition towards a low-carbon economy. Our sustainability framework is anchored in four pillars: climate, waste as a resource, environment, and people and communities - each of which supports the United Nations Sustainable Development Goals.

Performance of major sustainability KPIs

• Green energy mix and thermal substitution: A key

pillar of JKCLs decarbonisation approach is its captive power infrastructure. As of FY 2025-26, the Company is supported by 119.3 MW of Waste Heat Recovery Systems (WHRS) capacity and 171.41 MW of renewable energy capacity secured through long-term PPAs.

The Company has set a target of achieving a 75% green energy (renewable energy and WHRS) mix compared to 19% in the base year FY 2019-20, and a thermal substitution rate (TSR) of 35% by FY 2029-30. In FY 202526, the share of green energy reached 51.8%, while TSR stood at 11.97%.

• Circular economy: Embracing a robust circular economy model, JK Cement is increasing the use of industrial by-products, such as fly ash from power plants and slag from steel units, in cement manufacturing to minimise clinker consumption. The Company is also substituting virgin limestone with these materials and scaling the use of Alternative Fuels and Raw Materials (AFR) within its kilns, preserving critical natural resources and diminishing the carbon footprint of its production processes.

• Water stewardship: Recognising water as a precious and finite natural resource, JK Cement is optimising its use across operations. Through the adoption of water-efficient technologies, including the replacement of water-cooled condensers with air-cooled ones at

its power plants, the Company has improved water efficiency across operations. These efforts, coupled with water conservation initiatives undertaken both within and beyond operational boundaries, have improved the Companys water positivity ratio from 3.2x in the base year FY 2019-20 to 4.9x in FY 2025-26, keeping it on track to achieve its target of being 5x water positive by FY 2029-30. During the year, the Nimbahera Integrated Unit has been awarded the ‘Gold Rated status under the CII Blue Rating System.

• Biodiversity preservation: The Company has undertaken high-density ecological restoration initiatives to maximise carbon sequestration and support local climate conditions. The Company planted over 1.28 Lakhs saplings this year, maintaining a strong survival rate of 85-90%. The implementation of the Miyawaki method has helped create ‘urban forests across sites, which are serving as efficient dust barriers and temperature regulators. During the year, the Company has adopted the Taskforce on Nature-related Financial Disclosures (TNFD) framework and conducted site-specific biodiversity risk assessments using the LEAP approach. In the first year of implementation, that is in FY 2025-26, assessments were completed for three high-impact sites: Nimbahera (Rajasthan), Mangrol (Rajasthan) and Panna (Madhya Pradesh). This initiative enhanced the Companys understanding of its dependence on and impact on nature, while also enabling the identification and mitigation of risks related to water scarcity or soil degradation.

Social equity and governance excellence: The

Company remains committed to fostering an inclusive and diverse workplace, with a target of achieving 5% gender diversity by FY 2029-30. Female representation has already increased to 4% in FY 2025-26, reflecting consistent progress towards this goal. This focus on inclusive growth is supported by a robust governance framework, with independent members comprising 50% of the Board of Directors.

• Net-zero and decarbonisation roadmap: During FY 2025-26, JK Cement made significant strides in its decarbonisation journey, reporting a Gross Greenhouse Gas (Scope 1 and Scope 2) emissions intensity of 575 kg CO2/t of cementitious material. This represents a substantial 15.4% reduction from the 2020 baseline of 680

kg CO2/t, highlighting the Companys ongoing transition towards low-carbon manufacturing. These near-term emission reduction targets have been validated and approved by the Science Based Targets Initiatives (SBTi). Supported by the increasing adoption of green energy and clinker substitution, JK Cement remains firmly on track to realise its science-based Gross GHG Emission reduction target of 532 kg CO2/t by FY 2029-30.

In June 2025, JK Cement became the first cement company in India to commence the commercial production of Limestone Calcined Clay Cement (LC-3) at its Mangrol facility in Rajasthan. LC-3 can reduce carbon emissions by up to 40% compared to Ordinary Portland Cement (OPC). The full-scale production of LC-3 was enabled through a strategic collaboration with the Indian Institute of Technology, Delhi.

The first major infrastructure application of JK Cements LC-3 was at Noida International Airport in Uttar Pradesh.

JK Cement has joined the Lead IT initiative to support industrial decarbonisation and contribute to Indias long-term climate objectives. During FY 2025-26, the Company secured funding under the Lead IT Industry Transition Partnership to undertake a pre-feasibility study in collaboration with Cemvision, Tata Steel and IIT-ISM Dhanbad. This project will explore the use of steel slag as an alternative raw material for low-carbon cement production. JK Cement is also developing a 2.0 TPD oxyfuel-based carbon capture pilot plant in partnership with the Ministry of Science and Technology, NCCBM, and IIT Roorkee. This plant marks a significant milestone in the Companys Carbon Capture, Utilisation and Storage (CCUS) journey and reinforces its commitment to advancing deep decarbonisation within the cement sector. Taken together, these collaborations form part of the Companys broader decarbonisation roadmap and support Indias ambitious 2070 Net Zero mandate.

JK Cement engages with global sustainability-focused frameworks and organisations, including the SBTi, CII-IBBI and Lead IT. During FY 2025-26, the Companys sustainability performance was recognised across leading assessment platforms. JK Cement achieved an ESG score of 76/100 in the S&P Global Corporate Sustainability Assessment, an improvement over the previous year, and was included in the S&P Global Sustainability Yearbook 2026 as "Members".

In CDPs 2025 assessment cycle, the Company received an A- score for water security, a B score for climate change, and an A rating in the Supplier Engagement Assessment.

JK Cement was also recognised as a top performer in the cement sector by NSE Sustainability Rating Analytics, with an ESG rating of 67 in FY 2025-26.

These accolades and recognitions validate the Companys persistent emphasis on balancing industrial growth with environmental stewardship and social responsibility.

DIGITAL TRANSFORMATION

During FY 2025-26, JK Cement expanded its digital ecosystem across its Grey and White Cement businesses, creating a unified platform for core functions, such as Sales Force Automation (SFA), Distributor Management System (DMS), and influencer management.

Dedicated digital applications for the White Business Development (BD) and Grey Non-Trade/KAM functions optimised operations through automated attendance tracking and lead management. The Company also strengthened governance and compliance through Aadhaar-verified site and contractor management modules, while advanced Marketing Cloud (SFMC) enabled more targeted customer outreach.

Digital initiatives such as Electronic Proof of Delivery (ePOD) and a dynamic loyalty programme have further enhanced operational efficiency, improved service delivery and strengthened stakeholder engagement.

Enhancing sales intelligence and market visibility

The JKONE project marked a significant step in the Companys digital transformation journey with the launch of the JKONE Next App. The platform improves sales intelligence through an AI-powered Retail Intelligence Co-pilot and Retail Insights, enabling better visibility. The platform further enhances

decision-making through AI Powered System such as Segment dashboards, while Do-It-Yourself (DIY) Dashboards track secondary KPIs. It also supports Scheme Notifications and Club Tier Support for precise customer targeting.

Furthermore, the Retailer Application facilitates Direct to Retail (D2R) fulfilment and credit risk management, while driving retailer engagement and higher sales through gamified features such as ‘Top Deals and a range of self-service tools.

Cybersecurity and digital risk management

FY 2025-26 marked a significant shift in JK Cements cybersecurity approach from conventional reactive protection measures to a proactive, intelligence-led risk management strategy aligned with the Companys expansion and digitalisation objectives.

Cybersecurity is increasingly viewed as a business enabler, safeguarding operational integrity across manufacturing facilities, digital interfaces and enterprise frameworks.

During the year, JK Cement achieved an A-rated external security posture, exceeding prevailing industry benchmarks. The Company has also implemented a comprehensive Data Loss Prevention (DLP) framework across cloud environments, endpoints and communication channels to strengthen data security and governance.

The Company has further enhanced its compliance capabilities in line with the Digital Personal Data Protection (DPDP) Act and established 24/7 operational visibility through the integration of XDR and NDR ecosystems.

Further reinforcing its commitment to information security, the Corporate Office has secured the ISO 27001:2022 certification.

SAP S/4 HANA rollout in the Paints business

Achieved a key milestone this year with the successful completion of Project Navrang, under which SAP S/4 HANA was implemented across the Paints business, advancing digital maturity and operational excellence.

This initiative has integrated all core functions of the Paints division, spanning Finance, Supply Chain, Production, Quality, and Sales, into a unified digital ecosystem, providing end-to- end visibility across the entire value chain.

The project has enhanced operational agility through realtime data analytics and automated workflows, enabling faster and more informed decision-making. Furthermore, it has driven process standardisation by aligning internal business practices with global SAP best practices, while providing integrated intelligence that bridges the gap between shop floor operations and corporate strategy to optimise performance tracking and cost management.

READY-MIX CONCRETE (RMC)

Expanding the grey cement ecosystem

JK Cements entry into the Ready-Mix Concrete (RMC) business marks an important step in its evolution from a cement manufacturer to an integrated construction solutions provider. The RMC business strengthens the Companys presence across the construction value chain while creating a captive demand channel for its Grey Cement business.

We the successfully commissioned of 5 RMC plants, and plan to add more than 100 RMC plants to expand its footprint.

To support this scale-up, JK Cement has implemented a robust SAP-driven IT framework. The framework integrates SAP ERP and plant-level PLC and SCADA systems, enabling seamless data exchange across operations. This bidirectional interface automates production by pushing recipes to controllers and pulling real-time consumption data back into SAP. By removing manual bottlenecks, JK Cement is building a data-intelligent foundation for ensuring consistent product quality and stronger operational control.

RMC plants set up in FY26

Transforming billing and dispatch processes

The Company has also advanced the digitalisation of its billing and dispatch processes through a ‘Zero-Touch billing framework. This sophisticated digital ecosystem automates the issuance of e-Invoices and e-Way bills upon completion of Post Goods Issue (PGI). This paperless billing framework, coupled with digital signatures and unified formats, ensures instantaneous, legally valid dispatches.

Furthermore, the Company has integrated its billing framework with the VAHAN and NIC portals to enable real-time vehicle verification at entry points, improving security and procedural accuracy. In addition, a unified, next-gen RFID architecture has replaced fragmented legacy systems, leading to significant cost savings and enhanced operational continuity.

HUMAN RESOURCE

At JK Cement, our people remain central to the Companys growth and long-term success. Guided by the principles of People, Purpose and Performance, we continue to foster a culture of trust, accountability and collaboration, enabling employees to contribute meaningfully to the organisations objectives while achieving their own professional aspirations. As on 31st March2026, the Companys permanent workforce comprised 4,952 employees and 99 permanent workers, supported by an indirect workforce of over 15,000 individuals across locations. As the Company expands, strengthening employee capabilities, engagement and leadership remains a strategic priority.

5,196

Permanent Workforce as on 31st March2026 (standalone)

Talent acquisition

During FY 2025-26, the talent acquisition function played a critical role in supporting the Companys growth plans, facilitating the onboarding of approximately 2,000 employees across direct and indirect categories. Efforts remained focused on building an agile and efficient hiring ecosystem capable of attracting quality talent while improving recruitment effectiveness and cost efficiency.

The Company strengthened its entry-level talent pipeline through the induction of Graduate Engineer Trainees (GETs) and Management Trainees (MTs). Gender diversity remained an area of focus, with the Company maintaining a gender diversity ratio of approximately 4% during the year.

Learning and development

Building a future-ready talent pool remains our foremost priority. The Company consistently invests in capabilitybuilding programmes designed to enhance technical, managerial and leadership competencies across all levels of the organisation.

A comprehensive learning architecture comprising various initiatives, such as Uday, Saarthi, Unnati, Pragati, LAP and more, caters to employees across the organisational hierarchy, from first-line managers to enterprise managers. These programmes are complemented by learning partnerships with premier institutions, including IIMs, IITs and INSEAD, enabling employees to gain exposure to contemporary management practices and global perspectives.

Through a combination of classroom interventions, experiential learning and on-the-job development, the Company seeks to build a strong leadership pipeline capable of supporting future business growth.

Internal talent development

The Company has been a firm believer in grooming its internal talent and providing early growth opportunities to its employees. This year, more than 600 employees were provided with enhanced career opportunities through promotions, role expansions and internal mobility initiatives. The Companys Internal Job Posting (IJP) framework has been fully implemented, enabling employees to explore career opportunities across functions and locations. Many leadership positions within the organisation are filled through internal succession, reflecting the efficacy of the Companys talent development approach.

All internal movements are supported by structured development plans, mentorship and capability-building interventions to facilitate successful transitions and long-term career growth.

Employees provided with better career opportunities

Employee engagement

The Company continues to strengthen employee engagement through transparent communication, proactive listening and inclusive people practices. During the year, particular emphasis was placed on enhancing employee connectivity, early engagement and retention through regular interactions and feedback mechanisms.

The leadership communication initiative, Samwaad, enables direct dialogue between employees and senior leadership, fostering openness, trust and organisational alignment. Employees are also regularly informed about business performance, strategic priorities and organisational developments through monthly business updates and quarterly investor presentations.

These initiatives help strengthen employee understanding of the Companys direction while ensuring that concerns and feedback are addressed in a timely manner.

Rewards and recognition

The Company remains committed to fostering a performance- driven culture supported by transparent evaluation and reward mechanisms. During the year, JK Cement completed its performance appraisal cycle ahead of the financial year- end, reflecting its commitment to timely feedback and employee growth.

Recognition continues to play an important role in reinforcing organisational values and motivating employees. The Companys flagship reward and recognition programme, Protsahan, acknowledges outstanding employee contributions and achievements. Since its inception, more than 3,000 employees have been recognised under the programme.

The Company also commemorated Samman, its signature employee and business partner engagement initiative, which reflects the organisations long-standing commitment to recognising and valuing the contributions of its workforce and ecosystem partners.

Workplace culture and employer branding

JK Cements commitment to building a positive and inclusive workplace has been recognised externally. During the year under review, the Company was recognised among Indias Top 50 Manufacturing Organisations in India by Great Place to Work?, reaffirming the strength of its people practices, culture and values.

The recognition reflects the Companys continued efforts to create a workplace that promotes collaboration, respect, learning and growth while supporting employee well-being and organisational performance.

Way forward

The Company remains focused on strengthening organisational capabilities, enhancing employee engagement, nurturing leadership talent and building a high-performance culture. By continuing to invest in people, processes and systems, JK Cement aims to create a future-ready workforce capable of supporting sustainable growth and long-term value creation.