JK gains capacity edge over peers

Gaining ground Central India has been a key driver of JK Cement's capacity expansion lately, aiding market share gains.

- Harsha Jethmalani

JK Cement Ltd's timely capacity additions and solid execution are giving it an edge over mid-cap peers battling muted volume growth after the recent wave of industry consolidation.

JK's grey cement volumes rose 15% year-on-year in the March quarter (Q4 FY25) to 5.39 million tonnes (mt). This implies market share gains in north and central India as peers operating in these areas reported volume growth in the 3-8% range, Emkay Global Financial Services said in a report dated 25 May. JK also out-paced the industry's estimated volume growth of 4-5% in Q4.

Government spending and pent-up demand in its key market of central India, where it is adding capacity, buoyed volume growth in the last quarter. The ramp-up of a new grinding unit in Prayagraj (Uttar Pradesh), commissioned in FY25, also contributed. JK projects grey cement volumes will increase to 20 mt in FY26 from about 18 mt in FY25.