JSW Cement’s latest unit rollout pushed its grinding capacity to 25.1 MTPA, lifting stock to a 1.85% rally on Tuesday.
The 1 MTPA addition comes from a new grinding plant in Nagaur, Rajasthan. Prior to the launch, the company operated at 24.1 MTPA, so the expansion represents a 4.2% uptick in capacity.
Clinker output remains steady at 9.74 MTPA, inclusive of the joint venture with JSW Cement FZC. The company flagged that the new unit will help meet projected demand in the north‑central belt without needing further expansions.
In parallel, the board approved a merger scheme to absorb Shiva Cement Ltd. Under the plan, shareholders will receive five JSW Cement shares for every 41 Shiva shares, with no cash consideration. The transaction is slated for completion by April 2026, pending regulatory clear‑ances.
Cement demand is expected to hold in the next quarter, though input costs are climbing. Analysts note that the capacity boost could improve margins if the cost curve stabilises.
Forward‑looking, JSW Cement will report Q4 earnings on 15 June. Management hinted that the merged entity will aim for a 10‑15% EBITDA lift by FY27, contingent on the seamless integration of the new grinding unit.
Investors will watch the June results closely, as the sector’s cost dynamics could offset the benefits of the capacity uptick.