JSW Cement Limited – IPO Reviews 2025, Analysis and Notes

Recommendation: Subscribe – Long term

Key Highlights

Company Background:

Incorporated in 2006, JSW Cement Limited is a leading manufacturer of green cement in India and a part of the JSW Group. The company focuses on sustainable and innovative solutions in the cement industry. It operates seven strategically located plants, including one integrated unit, one clinker unit, and five grinding units across Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra, West Bengal, and Odisha. As of March 31, 2025, the company had an installed grinding capacity of 20.60 MMTPA—comprising 11.00 MMTPA in the South, 4.50 MMTPA in the West, and 5.10 MMTPA in the East. Its product portfolio includes blended cement, ordinary Portland cement, ground granulated blast furnace slag (GGBS), clinker, and other allied cementitious products.

Market Opportunity:

 India is the second-largest cement producer globally, driven by rapid urbanization, infrastructure expansion, and housing demand. Government initiatives like PM Gati Shakti, Smart Cities Mission, and affordable housing schemes are expected to boost cement consumption. The eastern and western regions, in particular, offer strong growth potential due to low per capita consumption and rising infrastructure investments. The industry is also witnessing a shift toward blended and green cement, aligning with sustainability goals. These trends present a significant long-term opportunity for companies like JSW Cement to expand capacity and market share.

Rapid Growth, Market Leadership and Strategic Growth:

 JSW Cement is the fastest-growing cement manufacturer in India, driven by rapid expansion in grinding capacity and sales volume. It holds the distinction of being the country’s largest GGBS producer, with a strong track record of scaling this sustainable product line. Its strategically located plants are wellconnected to raw material sources and key consumption markets, enhancing supply chain efficiency. This geographical advantage ensures costeffective operations and fast market access. These strengths collectively position the company as a leader in operational scale and market responsiveness.

Sustainability, Distribution Reach, and Strong Promoter Support:

With the lowest carbon dioxide emission intensity among peers and top global players, JSW Cement sets a benchmark in environmental performance. Its extensive distribution network—including 4,653 dealers and 8,844 subdealers—ensures strong brand presence across India. Focused marketing and customer engagement further enhance brand visibility. The company benefits from the JSW Group’s industrial legacy, providing strategic and financial strength. A highly experienced management team drives execution excellence, ensuring sustained growth and innovation.

Financials:

Over FY23–FY25, JSW Cement’s revenue remained largely flat despite gradual volume growth, as increased competitive intensity led to a decline in cement realizations. While overall costs stayed stable, the absence of revenue growth resulted in stagnant EBITDA performance. Notably, EBITDA per tonne declined from ₹787 in FY23 to ₹645 in FY25. The pressure from intense competition and falling realizations ultimately pushed the company into a net loss position, reversing from a profit of ₹104 crore in FY23.

Valuation:

At the upper price band of ₹147, JSW Cement is valued at $140 per tonne which is bit on higher side on relative basis but seeing the companies track record and strong promoter group we recommend a Subscribe rating for long-term investors.

Key Risks:

JSW Cement is exposed to raw material supply risks, as it depends on third-party sources for slag and fly ash. Intense industry competition and regional overcapacity may impact pricing and profitability. Regulatory hurdles and project approval delays could affect expansion plans. Additionally, its performance remains sensitive to infrastructure cycles and macroeconomic conditions.

Issue Highlights

Offer Structure

Lead Book Running Managers

• Axis Capital Limited

• Citigroup Global Markets Limited

• JM Financial Limited

• DAM Capital Advisors

• BofA Securities India Limited

• Goldman Sachs (India) Securities Private Limited

• Jefferies India Private Limited

• SBI Capital Markets Limited

Registrar to the Offer

Kfin Technologies Limited

Research Analyst

Rajan Gupta – rajan.gupta1@religare.com

Research Team

Ajit Mishra – ajit.mishra@religare.com
Abhijeet Banerjee – abhijeet.banerjee@religare.com
Gaurav Sharma – gauravsharma2@religare.com
Ashwani Harit – ashwani.harit@religare.com
Divya Parmar – divya.parmar@religare.com
Vinay Kalani – vinay.kalani1@religare.com
Rajan Gupta – rajan.gupta1@religare.com

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• Author: Religare Broking
• Last Updated: August 6, 2025