JSW Cement Incurs Rs 1,356-Crore Loss In Q1 FY26 Due To Conversion Of CCPS

JSW Cement officially announced on Wednesday that its loss in the first quarter of the financial year 2026 (Q1 FY26) widened to Rs 1,356.17 crore, as against Rs 15.12 crore in Q1 FY25.

The company has attributed the loss to a one-off charge related to the conversion of Compulsorily Convertible Preference Shares (CCPS) into regular equity shares.

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The company stated that on July 24, 2025, before its initial public offering, it converted 16 crore (160 million) CCPS, with a face value of Rs 100 each, into 23.57 crore (235.7 million) equity shares with a face value of Rs 10 each.

As a result, the CCPS liability of Rs 1,897.7 crore as of 31 March 2025 was revalued on 30 June 2025. This led to a non-cash value expense of Rs 1,466.4 crore in Q1 FY26. Since the CCPS has now been converted, no further such expenses will arise in future quarters, the company said.

Excluding this one-time accounting adjustment, the company’s adjusted profit after tax for Q1 FY26 stood at Rs 100 crore, while revenue from operations in Q1 FY26 was Rs 1,559.82 crore, up 7.77 per cent year-on-year (Y-o-Y), driven by higher sales volume and improved realisations.

During the quarter, the company’s cement realisation improved by 5.7 per cent on a quarter-on-quarter (Q-o-Q) basis, while GGBS realisations remained stable.

Operating Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 39 per cent
Y-o-Y to Rs 322.7 crore, while operating EBITDA per tonne was Rs 974 in Q1 FY26 compared with Rs 758 in Q1 FY25.

Operating EBITDA margin stood at 20.7 per cent in Q1 FY26 against 16.1 per cent in Q1 FY25. Total EBITDA, including other income, was Rs 344.7 crore in Q1 FY26, up 34 per cent Y-o-Y.