JK Cement Ltd. reported a 7.8% year-on-year increase in consolidated net profit for the second quarter of fiscal 2027, even as its EBITDA margin contracted from a year earlier. The cement maker also announced plans to expand its paints business, with its wholly owned subsidiary, JK Maxx Paints Ltd., set to establish a new manufacturing facility in Telangana at an estimated cost of Rs 130 crore.
The company's consolidated net profit rose to Rs 173 crore in the July-September quarter from Rs 161 crore in the corresponding period last year, according to its stock exchange filing dated October 24.
Revenue from operations grew 23.7% year-on-year to Rs 3,733 crore, compared with Rs 3,019 crore in the year-ago quarter, reflecting stronger topline growth.
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EBITDA, or earnings before interest, taxes, depreciation and amortisation, increased 13.6% to Rs 507 crore from Rs 447 crore a year earlier. However, EBITDA margin declined to 13.6% from 14.8% in the corresponding quarter last year, indicating pressure on operating profitability despite growth in revenue and earnings.
Alongside its quarterly results, JK Cement approved a new water-based paint manufacturing plant through JK Maxx Paints, its wholly owned subsidiary. The proposed facility will be located at Raghunadhapalem in Telangana's Suryapet district and will have a capacity of 75,000 kilolitres per annum.
The project carries an estimated capital expenditure of Rs 130 crore. According to the company's filing, the investment will be funded within the Rs 600 crore investment in the paints business already approved by the board.
The new facility is expected to be commissioned in about 12 months from the start of construction.
JK Maxx Paints currently operates a manufacturing facility in Bhiwadi, Rajasthan, with an installed capacity of 73,000 kilolitres per annum. The existing plant is operating at a utilisation rate of 60%.
JK Cement said the expansion is planned as the Bhiwadi facility is projected to reach full utilisation by fiscal 2028. The Telangana plant is expected to add manufacturing capacity as the company prepares for higher utilisation of its existing infrastructure.
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The expansion marks another step in JK Cement's efforts to build its presence in the paints segment alongside its core cement business.
The company's board approved the consolidated and standalone unaudited financial results for the quarter and half-year ended September 30, 2026, at its meeting on October 24.
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