Stock Analysis: Can JSW cement achieve strong revenue and EBITDA growth in near future?

Synopsis: Equirus initiates coverage on JSW Cement with a Long rating and Rs. 167 target, 41% upside with citing its 80% GGBS market share, strategic northern expansion, strong steel linkages, and projected 18% revenue and 33% EBITDA growth over three years.

This company is a leading Indian manufacturer of green cement, known for its sustainability and use in major infrastructure projects is now in the spotlight after Equirus gave a Long rating with 41% upside.

With a market capitalisation of Rs. 16,196 cr, the shares of JSW Cement closed at Rs. 118.80 per share from its previous close of Rs. 118.65 per share. The stock debuted on the BSE and NSE on August 14, 2025, after its IPO, registering a modest gain of around 4.4% as it opened at Rs. 153.50 compared to its issue price of Rs. 147.

Equirus on JSW Cement

Equirus has initiated coverage on JSW Cement with a ‘Long’ rating, setting a target price of Rs. 167, implying an upside potential of 41% from current levels. The brokerage highlights the company’s leadership position in India’s GGBS market, where it commands an impressive 80% share, supported by strong raw-material linkages with JSW Steel.

It also highlights that rising infrastructure activity and the growing preference for environmentally friendly building materials are expected to significantly boost demand for GGBS (Ground Granulated Blast Furnace Slag). This demand surge is likely to enhance JSW Cement’s margins and operational stability over the coming years.

Equirus also points to JSW Cement’s expansion into northern India through its 3.5 million tonne Nagaur plant, which provides the company a strong 15-month early-mover advantage in a region known for higher profitability. This strategic move positions the company to scale rapidly in the northern market.

Overall, the brokerage expects JSW Cement’s revenue and EBITDA to grow 18% and 33%, respectively, over the next three years, driven by additional capacity and consistent performance in the GGBS segment.

About the company & Financials

JSW Cement Ltd, part of the JSW Group, is a leading Indian cement manufacturer known for its focus on eco-friendly (“green”) cement. Established in 2009 in Vijayanagar, Karnataka, it has expanded with multiple plants across southern, western, and eastern India, as well as a clinker facility in the UAE. The company offers a wide range of products, including Portland Slag Cement (PSC), Ordinary Portland Cement (OPC), Ground Granulated Blast Furnace Slag (GGBS), clinker, ready-mix concrete, and construction chemicals. 

Sales increased by 17% to Rs. 1,436 crore in Q2FY26 from Rs. 1,224 crore in Q2FY25, while EBITDA surged 218% to Rs. 268 crore from Rs. 84.3 crore. The company turned profitable with a net profit of Rs. 75.4 crore, from a loss of Rs. 75.8 crore in the previous year. EPS improved to Rs. 0.63 from a negative Rs. 0.63, reflecting a significant turnaround in operational and financial performance.

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