JSW Cement Approves ₹1,078 Crore Expansion at Karnataka and Maharashtra Plants

JSW Cement has approved investments worth approximately ₹1,078 crore to expand grinding capacity at its Vijayanagar facility in Karnataka and Dolvi plant in Maharashtra. The proposed projects will add a combined 4 million tonnes per annum (MTPA) of capacity, strengthening the company’s production network as it looks to support future demand.

The expansion plans come alongside the company’s financial results for the second quarter of the 2026–27 financial year, which showed strong revenue growth but a marginal decline in net profit and a contraction in operating margins.

JSW Cement reported a net profit of ₹85.3 crore for the quarter, down 1.3% from ₹86.4 crore in the corresponding period last year. Revenue, however, increased 33.1% year-on-year to ₹1,912 crore from ₹1,436 crore.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 3.8% to ₹278 crore, compared with ₹267 crore a year earlier. Despite the increase in operating earnings, the EBITDA margin narrowed to 14.5% from 18.6%, indicating pressure on profitability relative to revenue.

Vijayanagar to add 2 MTPA of GGBS capacity

At Vijayanagar in Karnataka, the board has approved an additional grinding system with a capacity of 2 MTPA for ground granulated blast furnace slag (GGBS). The project carries an estimated investment of ₹509 crore and is expected to be commissioned by May 2028.

The facility currently has a rated cement and GGBS production capacity of 6 MTPA. The proposed addition will expand its processing capability, with the new system focused on GGBS production.

Dolvi expansion targeted for October 2028

At Dolvi in Maharashtra, JSW Cement plans to install another grinding mill with a capacity of 2 MTPA. The project is estimated to cost ₹569 crore, with commissioning targeted for October 2028.

Dolvi currently has a cement grinding capacity of 4.5 MTPA. The additional mill is expected to increase the plant’s capacity and support the company’s wider growth plans.

Together, the two projects account for the full ₹1,078 crore investment approved by the board. JSW Cement intends to fund the expansion through a combination of internal accruals and debt.

Subsidiary receives financial support

Separately, JSW Cement has agreed to provide a corporate guarantee of up to ₹60 crore in favour of IndusInd Bank for credit facilities of the same amount sanctioned to its wholly owned subsidiary, JSW Green Cement Private Limited.

The subsidiary will use the facilities to meet capital expenditure and working capital requirements linked to its proposed growth plans.

With both grinding projects scheduled for commissioning in 2028, the expansion marks another step in JSW Cement’s efforts to increase production capacity while navigating margin pressures and pursuing revenue growth.