JSW Cement IPO

JSW Cement is among the fastest-growing cement makers in India. Its ability to produce cement grew by 12.42% each year, and sales volume (excluding JSW Cement FZC) grew by 15.05% each year from FY23 to FY25, which is faster than others in the industry.

Its clinker-to-cement ratio (operational efficiency metric for evaluating resource utilization) was 50.13% in FY25 and 46.60% in FY24, which is lower than the peer average of 66.43% in FY24. A lower ratio indicates efficient use of clinker, a natural resource.

The company has a very large way to sell its products across India. It works with 4,653 dealers, 8,844 sub-dealers, and directly serves 6,559 big customers, helping its products reach more people.

Its seven plants in India and one in the UAE are set up in good spots. They are close to where it gets raw materials and where many customers are in the southern, western, and eastern parts of India, making its work more efficient and saving transportation costs.

The company makes "green" cement products, which are better for the environment. In FY25, its carbon pollution was about 54% lower than other big global cement companies, and 21.48% of its power came from green sources.

The company is India's largest manufacturer of Ground Granulated Blast Furnace Slag (GGBS) (steel waste powder used to make stronger, greener cement), holding an approximate market share of 84% in FY25 sales.

Benefits from Parent Group: Being part of the JSW Group, a big company with many different businesses, helps it a lot. It gains from the well-known "JSW" brand and has experienced leaders, which gives it a strong advantage.

The company heavily depends on JSW Steel Limited for 92.93% of the blast furnace slag it used in FY25. This material is key for its green cement, so losing this supplier could really hurt its business.

It had a loss of ₹163.77 crore in FY25. This happened because the money it earned per ton of cement went down by 7.98%, and its joint ventures caused more losses, which impacted its overall profitability.

The company has a lot of debt, totaling ₹6,166.55 crore as of March 31, 2025, and most of this debt has interest rates that can change. If interest rates go up by just 1% (100 basis points), its profit in FY25 could drop by ₹61.89 crore.

In terms of revenue growth, its scale went down by 0.6% annually between FY23 to FY25 from ₹5,982 crore to ₹5,915 crore.

The EBITDA margin of the company also shrank to 13.8% in FY25, as compared to 16.9% in FY24, reflecting a decrease in profits from operations of the company, or after excluding direct operational costs from the revenue.

It plans to greatly increase its ability to make cement, aiming for 41.85 MMTPA grinding capacity and 13.04 MMTPA clinker capacity. These big building projects need much money and many approvals, and delays or higher costs could harm the company’s financials.