Sajjan Jindal, the force behind the JSW group, saw the cement opportunity early and started JSW Cement in 2006. Back then, demand was rising as cities grew and highways took shape. By investing in cement early and building a cost-efficient supply chain, JSW Cement managed to carve out a good starting position. Now, the company is planning to go public by raising ₹3,600 crore in an IPO. Out of this, ₹1,600 crore will help JSW Cement expand and pay off debts, while ₹2,000 crore will allow early investors like Apollo Global and SBI to sell their shares.
| Detail | Information |
|---|---|
| IPO Size | ₹3,600 crore |
| Fresh Issue | ₹1,600 crore (for expansion & debt repayment) |
| Offer for Sale (OFS) | ₹2,000 crore (Apollo Global, SBI & others selling stake) |
| IPO Price Band | ₹146–₹147 per share |
| Estimated Market Cap (at IPO) | ~₹20,000 crore |
| Use of IPO Proceeds | - Expansion (Nagaur, Rajasthan plant: ₹800 crore) - Repay borrowings |
| Major Debt Before IPO | ₹6,122 crore |
| New Debt Raised (FY25) | ₹2,100 crore (Axis & Union Bank, ~8.8% interest) |
| Revenue (FY25) | ~₹6,000 crore |
| Net Profit/Loss (FY25) | Loss of ₹164 crore |
| Previous Net Profit (FY24) | Profit of ₹131 crore |
| Capacity (FY25) | 21 million tonnes per annum (mtpa) |
| Planned Capacity (FY27E) | 42 mtpa |
| Capacity Utilisation (FY25) | 63% (Industry avg: 72%) |
| EV/EBITDA (IPO Valuation) | ~23x (industry average) |
| Return on Equity (FY25) | Just above 2% |
| Promoter Recent Purchase Price | Significantly below IPO price |
Note: Figures are approximate based on company filings and reporting around the IPO.
Cement is a tough and expensive business that depends a lot on location and logistics. Here’s why:
▫️Production is complex: Making cement means mining limestone, crushing it, heating it to 1,400°C, then blending and grinding it down.
▫️High costs: Fuel (30%), freight (25%), and raw materials (20%) make up the biggest expenses.
▫️Regional business: Cement is heavy and expensive to move, so factories are built near mines and the cement is usually sold within 200–300km. Companies typically dominate only certain regions.
▫️Pricing pressure: Prices rely on demand and supply. If demand falls or a competitor undercuts on price, everyone’s profits drop.
▫️Capital needed: Building a new plant costs thousands of crores, and it takes years before these investments pay off.
JSW Cement is still a mid-sized player, with around 21 million tonnes of annual capacity (about 3% of India’s cement market, and one-tenth the size of giant UltraTech). But JSW Cement aims to double its capacity to 42 million tonnes by FY27 and hopes to grow across the country. JSW Cement isn’t just pouring concrete—it’s pouring ambition. With a current capacity of 20.6 million metric tonnes per annum (MMTPA), they’re already a top-10 player in India’s cement game. Their big plan? Scale up to 40.85–60 MMTPA by 2030, riding the wave of India’s infrastructure and housing boom. The Nagaur plant is a key step, adding muscle to their production.
Cement production creates a lot of pollution — as much as 7-9% of India’s total CO₂ emissions. JSW Cement is trying to stand out by focusing on “green cement,” especially a blend called GGBS (Ground Granulated Blast Furnace Slag), which is produced using waste from steel plants instead of limestone. Thanks to its close ties with JSW Steel, the company is the largest GGBS maker in India, and 70% of its sales come from eco-friendly cement. This reduces both pollution and costs, making the company more attractive to customers who care about sustainability.
Ground Granulated Blast Furnace Slag (GGBS or GGBFS) is a fine powder made from a by-product of the iron and steel-making process. When iron ore, coke, and limestone are melted in a blast furnace at very high temperatures (about 1,500°C), the leftover, non-metallic material called "slag" floats on top of the molten iron. This slag is quickly cooled with water—turning it into a glassy, sand-like granule—then dried and ground into a fine powder.
GGBS is used mainly as a partial replacement for cement in concrete. It makes concrete more durable and environmentally friendly because:
▫️It uses industrial waste (no extra mining needed)
▫️It reduces the amount of CO₂ produced compared to traditional cement
▫️It improves concrete's life, strength, and resistance to chemical attacks
Typically, GGBS replaces 30–70% of the cement content in concrete mixes. This makes the material especially popular for large infrastructure projects where strength and durability are priorities, and environmental benefits are needed
In summary, GGBS is a green, cement-like material made from blast furnace slag that helps create stronger, longer-lasting, and more sustainable concrete
Despite its strengths, JSW Cement posted a ₹164 crore loss in FY25, dropping from a ₹131 crore profit the year before, while revenues stayed flat at about ₹6,000 crore. Why? Most of its sales are in South and West India, where it doesn’t have much control over prices yet and faces tough competition. The average price it gets per cement bag is lower than the national average. When fuel and transport costs shot up, JSW Cement couldn’t pass them on to customers. Add to this the huge costs of expanding and building new plants, and profits have suffered.
JSW Cement – Financial Performance Snapshot
| Financial Metric | FY25 | FY24 |
|---|---|---|
| Total Income | ₹5,914.67 crore | ₹6,114.60 crore |
| Net Profit / (Loss) | ₹-163.77 crore | ₹62.01 crore |
| EBITDA | ₹815.32 crore | ₹1,035.66 crore |
| Total Borrowings | ₹6,166.55 crore | ₹5,835.76 crore |
| Net Worth | ₹2,352.55 crore | ₹2,464.68 crore |
| Earnings Per Share (EPS) | ₹-1.16 | ₹0.90 |
| Return on Equity (ROE) | -6.90% | 2.62% |
| EBITDA Margin | 13.78% | 16.94% |
If you want, I can also add interpretation points below this table to show readers what these numbers mean, such as growth trends, profitability pressure, and debt concerns — so it looks like a complete blog section rather than just raw numbers.
One big part of the IPO funds (₹800 crore) will help build a new plant in Nagaur, Rajasthan, opening up North India for JSW Cement. But this plant won’t be ready until FY26-FY27, and the company has already borrowed ₹2,100 crore at a high interest rate to keep construction on track. Even after using IPO funds to pay some debt, JSW Cement will still owe over ₹6,100 crore, putting pressure on future profits if demand doesn’t pick up.
Its return on equity is also low, just over 2%, much less than its competitors and even lower than its borrowing costs. In short, investors are paying for future potential rather than current performance.
It’s hard to value JSW Cement on profits alone since it posted a loss last year. Instead, its IPO price values the company at 23 times its EBITDA, which is about average for the industry, but might be on the higher side since JSW’s profits are thinner.
Also, the company isn’t using all of its factories efficiently. Its plants are running at just 63% capacity, down from 67% last year and below the industry average of 72%. It’s like a restaurant with a lot of empty tables.
JSW Cement is betting big on India’s infrastructure and on making cleaner, greener cement. If it succeeds, the company could become a leader in a fast-growing market. But there are real risks: high debt, rising costs, and tough competition. This isn’t a stock likely to give quick returns. It’s a long-term bet on execution and on the continuing growth of India’s cities and infrastructure. For investors with a long-term view who believe in India’s growth and in green industries, JSW Cement could be worth a closer look — just don’t expect overnight success.
