Why is JSW Cement Share Price Rising today?

22 May 2026 , 11:08 AM

Shares of JSW Cement surged as much as 12% in early trading hours on Friday after the company reported a sharp surge in profitability for the fourth quarter of FY26. The company also announced a major capacity expansion in Rajasthan and recommended a dividend for shareholders.

JSW Cement Q4 FY26 Profit Soars

JSW Cement posted a consolidated profit after tax (PAT) of ₹361.65 crore in Q4 FY26, compared to ₹16.21 crore in the corresponding quarter last year, marking a massive year-on-year increase.

The company’s consolidated total income rose 10.68% YoY to ₹1,915.57 crore during the quarter. Revenue from operations also climbed around 10.9% to ₹1,895 crore, supported by higher cement and slag sales volumes.

Despite rising input and freight costs, the company managed to deliver strong operational growth during the quarter.

Volume Growth Remains Strong

JSW Cement reported healthy volume expansion across segments during both the quarter and the full financial year.

• Q4 FY26 total volumes sold increased 7% YoY to 3.99 million tonnes.
• Cement sales volume rose 12% YoY to 2.35 million tonnes.
• FY26 total volumes sold grew 11% YoY to 13.96 million tonnes.
• GGBS sales volume increased 12% YoY to 5.78 million tonnes in FY26.

The company benefited from improved cement demand across India, particularly during January and February, aided by infrastructure spending, construction activity, and seasonal demand recovery.

FY26 Net Loss Widens Despite Revenue Growth

For the full financial year FY26, JSW Cement reported a consolidated net loss after tax of ₹798.78 crore, compared to a net loss of ₹163.76 crore in FY25.

However, annual consolidated total income increased 12.68% YoY to ₹6,664.86 crore from ₹5,914.66 crore in the previous financial year.

The widening annual loss comes amid aggressive expansion spending and higher operating costs.

Raw Material and Freight Costs Rise

The company continued to face cost pressures during the quarter.

• Raw material costs increased 16% YoY.
• Freight expenses rose 10.7% due to disruptions linked to the Middle East crisis.
• Total expenses climbed 2.4% YoY to ₹1,702 crore.

Higher logistics and fuel-related expenses impacted margins even as revenue growth remained healthy.

JSW Cement Announces ₹430 Crore Rajasthan Expansion

The board approved an investment of ₹430 crore to set up an additional 2.5 MTPA cement grinding capacity at Nagaur, Rajasthan.

Currently, the company has an existing grinding capacity of 2.5 MTPA at Nagaur, while another 1 MTPA unit is already under implementation. The newly approved capacity is expected to be commissioned by January 2028.

The expansion aligns with JSW Cement’s long-term strategy to strengthen its market presence and improve regional supply capabilities.

Capex Remains Elevated

JSW Cement continued its aggressive investment cycle during FY26.

• Q4 FY26 capex stood at ₹506 crore.
• Total FY26 capex reached ₹1,962 crore.

The company has been focusing on expanding manufacturing capacity and strengthening logistics infrastructure to support future growth.

Management Reappointments Approved

The board reappointed Nilesh Narwekar as Whole-Time Director and CEO for another three-year term beginning August 9, 2026.

Additionally, Sumit Banerjee was reappointed as an Independent Director for a second five-year term starting July 28, 2026.

Dividend Recommendation

JSW Cement’s board recommended a dividend of ₹0.50 per equity share, representing 5% for FY26, subject to shareholder approval.

JSW Cement Share Price Reaction

Following the earnings announcement, shares of JSW Cement surged as much as 9.3% during intraday trade before trimming some gains later in the session.

Investor sentiment remained positive due to the sharp jump in quarterly profitability, strong volume growth, and continued expansion plans.

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