JSW Cement disclosed a considerably increased net loss of ₹1,356.17 crore in the first quarter of the financial year 2026 (Q1 FY26). This was primarily due to a one-off CCPS conversion expense. The company, however, after making an exclusion for the mentioned loss, indicated an adjusted profit of ₹100 crore driven by increased sales and robust Ebitda growth.
JSW Cement Q1 Results Show One-Time Impact
JSW Cement Limited, based in Mumbai, is a part of the JSW Group which is a multi-industry conglomerate. The company is engaged in the production and sale of cement, ground granulated blast furnace slag (GGBS), and other construction materials, thus catering to the rising infrastructure and housing requirements of India.
In its Q1 FY26 results, the company announced that it made a net loss of ₹1,356.17 crore, which was about ten times the loss of ₹15.12 crore reported in Q1 FY25. The significant increase in the loss was mainly due to an off-site non-cash charge related to the conversion of compulsory convertible preference shares (CCPS) into equity shares.
CCPS Conversion and Financial Impact
On 24th July 2025, right before its impending initial public offering (IPO), JSW Cement performed a conversion of 16 crore CCPS (₹100 face value each) into 23.57 crore equity shares (₹10 face value each).
Consequently, the CCPS liability of ₹1,897.7 crore, which was as of March 31, 2025, was revalued on June 30, 2025. This revaluation resulted in a non-cash fair value expense of ₹1,466.4 crore in Q1 FY26.
The company also pointed out that since the CCPS conversion is over, no additional such deductions will appear in the coming periods, which gives a better earnings forecast.
Without taking this a mere bookkeeping entry into account, JSW Cement had a profit after tax of ₹100 crore to report in Q1 FY26.
Strong Operational Performance Despite Loss
The main results were overshadowed by the accounting treatment which affected the operational performance. However, operational performance held high.
- The revenue from operations of ₹1,559.82 crore was higher by 7.77% YoY, the increased volumes and realizations helped to reach this figure.
- The total sales volume grew 8% YoY to 3.31 million tonnes (mt).
- Cement sales: 1.85 mt, increased by 10% YoY.
- GGBS sales: 1.30 mt, increased by 5% YoY.
Semi cemented realizations rose by 5.7% QoQ, while the prices of GGBS remained unchanged.
Ebitda and Margins
JSW Cement has made substantial progress in profitability indicators and reported strong growth:
- Operating Ebitda: ₹322.7 crore, increased by 39% YoY.
- Ebitda per tonne: ₹974 in Q1 FY26 as compared to ₹758 in Q1 FY25.
- Ebitda margin: 20.7% in Q1 FY26 vis-à-vis 16.1% in Q1 FY25.
- Total Ebitda (including other income): ₹344.7 crore, was 34% higher YoY.
Also Read: JSW Cement Lists After ₹3,600 Crore IPO: Here’s How to Check Your Allotment
The company asserted that the decrease in costs and the better realizations were the main reasons for the increase in the margins even though the costs in the industry have been pushing up.
Capex, Debt, and Expansion Plans
Q1 FY26 total expenses were ₹1,417.26 crore, representing a 1% decrease.
- Net debt as of June 30, 2025 (excluding CCPS): ₹4,566 crore compared to ₹4,204 crore as of March 31, 2025. The increase was mainly the result of additional borrowings for the ongoing capital expenditure.
- Capex made in Q1 FY26: ₹456 crore (also including maintenance projects).
Also Read: JSW Cement IPO Opens August 7—Are You Ready to Apply?
- JSW Cement is implementing a growth program that is focused on becoming a pan-India player and is addressing the following:
- Grinding capacity: 41.85 mtpa.
- Clinker capacity: 13.04 mtpa.
This is consistent with an increasing demand for cement and infrastructure development in India.
Sequential Comparison
We can see that revenue in Q1 FY26 dropped by 8.75% sequentially compared to Q4 FY25, when the company had posted a profit of ₹34.22 crore. However, the adjusted profitability shown in Q1 FY26 after excluding the impact of one-off charges suggests the company’s strength.
JSW Cement Q1 Results: CCPS Conversion Impact
The JSW Cement Q1 results have been significantly influenced by the accounting adjustments that have led to a decrease in the reported profits. On the whole, the company experienced a net loss of ₹1,356.17 crore, which was mostly attributed to the one-off CCPS conversion charge.
Restricted to this incident, JSW Cement would have performed well with an increase in sales volume, strong revenue growth, and a considerable rise in Ebitda margins.
So, in the future, the end of CCPS conversion shall free the company from recurring charges, thus, enabling the place of a smoother earnings in later quarters. At the same time, JSW Cement Q1 results are also a reflection of its continuous expansion strategy, as it is committed to being a major player in the Indian cement sector.
FAQ’s
Q1: Why did JSW Cement report a large loss in Q1 FY26?
JSW Cement posted a net loss of ₹1,356.17 crore in Q1 FY26, primarily due to a one-time non-cash expense from the conversion of compulsory convertible preference shares (CCPS) into equity. This revaluation created a fair value expense of ₹1,466.4 crore. Since the CCPS conversion is complete, such deductions will not recur in future quarters.
Q2: What was JSW Cement’s adjusted profit in Q1 FY26?
Excluding the impact of the CCPS conversion, JSW Cement reported an adjusted profit after tax of ₹100 crore. The profit reflects stronger sales volumes and improved operating efficiency.
Q3: How did JSW Cement’s operations perform in Q1 FY26?
JSW Cement delivered solid operational growth with revenue rising 7.77% YoY to ₹1,559.82 crore. Sales volumes increased 8% YoY to 3.31 million tonnes, while cement sales grew 10% and GGBS sales 5%. Ebitda margins improved to 20.7%, showing healthy underlying performance despite the accounting impact.
READ MORE ON
