JSW Cement shares jumped 7.53% to ₹130.01 on the NSE on Thursday, May 21, hitting an intraday high of ₹132.13, after the company reported a strong Q4 FY26 earnings print — EBITDA surging 52% year-on-year to ₹364.1 crore with margin expanding sharply to 19.2% from 14.1% — amplified by a ₹146.77 crore tax write-back that swung the reported profit to ₹361.65 crore versus ₹16.21 crore in Q4 FY25.
Q4 FY26 key numbers
Consolidated revenue from operations came in at ₹1,894.99 crore for the quarter ended March 31, 2026, against ₹1,709.39 crore in Q4 FY25 — a 10.9% year-on-year growth. Total income including other income was ₹1,915.57 crore against ₹1,730.79 crore in the year-ago period.
The EBITDA story is the headline — ₹364.1 crore against ₹240.2 crore in Q4 FY25, a 52% jump, with margin expanding 510 basis points to 19.2% from 14.1%. This level of margin expansion on moderate revenue growth signals meaningful cost efficiency gains — lower power and fuel costs as a percentage of revenue, better freight management, and improved capacity utilisation.
Profit before exceptional items and tax stood at ₹219.32 crore against ₹75.75 crore in Q4 FY25 — nearly trebling year-on-year. An exceptional item charge of ₹4.44 crore brought profit before tax to ₹214.88 crore.
The tax write-back: What it is and why it matters
The tax line is the second major positive in this result. JSW Cement recorded a total tax credit of ₹146.77 crore in Q4 FY26 — compared to a tax expense of ₹59.54 crore in Q4 FY25. The swing is ₹206.31 crore year-on-year, entirely driven by a ₹140.74 crore deferred tax credit against a deferred tax expense of ₹35.12 crore in the prior year.
Deferred tax credits of this magnitude typically arise from the recognition of previously unrecognised deferred tax assets — often when a company moves from a loss position to sustained profitability, making it probable that tax losses carried forward can now be utilised. JSW Cement’s operational turnaround in FY26 appears to have crossed that threshold, triggering recognition of deferred tax benefits that flow directly to the bottom line. The combination of the ₹214.88 crore pre-tax profit and the ₹146.77 crore tax credit produced the ₹361.65 crore net profit for the quarter.
Key cost lines for Q4: raw materials consumed ₹464.59 crore, power and fuel ₹236.67 crore — virtually flat year-on-year despite 10.9% higher revenues — freight and handling ₹444.51 crore, employee costs ₹85.79 crore, finance costs ₹88.80 crore, and depreciation ₹83.58 crore.
Full year FY26: The exceptional item context
For the full financial year ended March 31, 2026, consolidated revenue from operations grew 12% year-on-year to ₹6,512.46 crore from ₹5,813.07 crore in FY25. The full-year net loss of ₹798.78 crore against ₹163.76 crore in FY25 is entirely a function of exceptional items of ₹1,504.48 crore booked during the year. Stripping out the exceptional charge, underlying full-year profit before exceptional items and tax was ₹723.26 crore against a loss of ₹43.64 crore in FY25 — a dramatic operational turnaround that the market is pricing in on Thursday. The share of profit from joint ventures and associates added ₹30.78 crore to the full-year consolidated performance.
Why the margin expansion matters
JSW Cement has been in an aggressive capacity expansion phase, with capital expenditure weighing on margins through FY24 and FY25. The 19.2% EBITDA margin in Q4 FY26 — the highest in recent memory — suggests that newly commissioned capacities are achieving utilisation levels where operating leverage is kicking in. Power and fuel costs came in flat year-on-year despite 10.9% higher revenues, indicating that investments in waste heat recovery and alternative fuel are delivering measurable results.
At ₹130.01, JSW Cement trades with a market capitalisation of approximately ₹17,418 crore, within a 52-week range of ₹106.65 to ₹162.15. Thursday’s move brings the stock back toward the upper half of its annual range on what is a genuine operational inflection — one where the operating performance, the tax write-back, and the deferred tax recognition are all telling the same story simultaneously.
This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.