JSW Cement share price is under selling pressure today after touching a new all-time high on September 04. The Government’s infra boost, coupled with lower GST, is expected to raise the demand for cement in the coming quarters. However, Motilal Oswal maintained its ‘Neutral’ rating on JSW Cement, with a target price of Rs 163. This implies an upside of 3% from current levels.

Motilal Oswal on JSW Cement: Debt elevated

The management of JSW Cement, the cement arm of JSW Group, focused on maintaining cost effectiveness in its earnings call. The company’s management indicated that a good monsoon, higher infra spending, and GST reforms bode well for the industry’s demand outlook.

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JSW Cement’s management expects cement demand growth to be at 6.5%-7.5% in FY26. “Its cost-saving (increase in green power, AFR usages, lead distance optimisation) and revenue growth (introduction of premium products) initiatives are likely to yield Rs 400/t over the next two years,” said Motilal Oswal.

In terms of expansions, the Sambalpur GU (1mtpa) is expected to be commissioned in September 2025, while the Nagaur integrated plant (3.3mtpa/3.5mtpa clinker/grinding) is expected to be commissioned in FY26. 

Despite improvement in profitability, Motilal Oswal expect debt to remain elevated, driven by higher capex of Rs 5,600 crore over FY25-28. The net debt is estimated to be Rs 4,520 crore for FY26, Rs 5510 crore for FY27, and Rs 5,750 crore for FY28. 

Motilal Oswal on JSW Cement: Focus on cost efficiency

The company recently had an earnings call with investors in which the firm’s management said that it aims to cut down expenses by Rs 400 per tonne over the next two years, as focus is on cost efficiency. 

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JSW Cement executives added that nearly half of this target has already been achieved through measures such as optimising logistics, shifting to renewable energy, expanding the use of alternative fuels, and increasing the share of premium products. This, according to Motilal Oswal, supports the target price estimates. 

JSW Cement Q1 FY26 results

JSW Cement’s Q1FY26 revenue rose 8% YoY to Rs 1,560 crore, while EBITDA increased by 39% YoY to Rs 320 crore. The EBITDA per tonne surged 29% YoY and 45% QoQ to Rs 975.