J.K.CEMENT LTD (NSE: JKCEMENT) Q1 2026 Earnings Call dated Jul. 21, 2025
Corporate Participants:
Unidentified Speaker
Ajay Saraogi — Deputy MD
Prashant Seth — President of Business Information and Investor Relations
Analysts:
Unidentified Participant
Vaibhav Bhav Agarwal — Analyst
Amit Murarka — Analyst
Devesh Agarwal — Analyst
Vishal Biraia — Analyst
Naveen Sahadev — Analyst
Sanjeev Singh — Analyst
Rishikesh — Analyst
Ritesh Shah — Analyst
Parvez Akhtar Qazi — Analyst
Girija Shankar — Analyst
Shravan Shah — Analyst
Tejas Pradhan — Analyst
Prateek Kumar — Analyst
Rajesh Ravi — Analyst
Aalok Shah — Analyst
Rahil Shah — Analyst
Siddharth Malhotra — Analyst
Bhavsar — Analyst
Presentation:
operator
Ladies and gentlemen, good morning and welcome to the JK Cement Earnings Conference. Call for the quarter ended 30 June 2025 hosted by Philip Capital India Private Limited. As a reminder, all participant lines will remain in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call please signal the operator by pressing Star then zero on your touchstone telephone.
Please note that this conference is being recorded. I will now hand the conference over to Mr. Vaibh Bhav Agarwal from Philip Capital India Private Limited for opening remarks. Thank you. And over to you.
Vaibhav Bhav Agarwal — Analyst
Thank you, Ryan. Good morning everyone. On behalf of Philip Capital India Private Limited we welcome you to the Q1FY26 call of JK Cement Limited. On the call we have with us Mr. Ajay Kumar Saraughi Deputy Managing Director and Chief Finance Officer and Mr. Prashant Seth, President Business Information and Investor Relations. I would like to mention on behalf of JKSM Unlimited and its management that certain statements that may be made or discussed on today’s conference call may be forward looking statements related to future developments and statements which are based on current management expectations. These statements are subject to a number of risks, uncertain entities and other important factors which may cause actual developments and results to differ materially from the statements made.
JKSML Ltd. And the management of the company assumes no obligation to publicly alter or update its forward looking statements whether as a result of new information or future events or otherwise. I will now hand over the floor to the management of J.K. simmons for the opening remarks which will be followed by interactive Q and A. Thank you. And over to you Sir. Raghu Sir.
Ajay Saraogi — Deputy MD
Thank you. Vaibhav. Good morning and welcome to Q1 call. So the board of directors met on 19th of July to review the performance of the company for the quarter ended 30 June 2025.
And the major highlights are that the net sales grew about 19% year on year at 30283028 crores. And whereas it degrew by about 6% as compared to the previous quarter the EBITDA during This quarter was 674 crores, an increase of 41% year on year. However, a dip of 9% over previous quarter. The comparative margins for the first quarter was 22.3% in this quarter visible 18.7% year on year and 22.8% in the previous quarter. The per ton EBITDA was 1247 crores rupees 1247 per ton as compared to 1014 in the previous year and 1265 rupees per ton in the previous quarter.
This performance has been led by the growth in. The performance is led by a 15% growth in the grade payment volume during this quarter year on year which was mainly on account of substantial growth in central India where we grew by over 50%. A teen growth in the south region where the base was low and there’s been a good growth, a good sale of clinker during this quarter. However, there has been some degrowth in the north mainly on account of the market conditions as the north did not grow that much. So if you look at the white cement, the white cement year on year grew by 8%.
And so these are the major financial highlights. If you look at during this quarter the company also completed the debottleneck at Ojen Unique. And now the consolidated capacity of the gray cement stands at 25.26 million tons. The green power capacity as on 31st as on 30th June is 184 megawatts. And the company also completed the acquisition of Sapco on 6th of June. So now Sapco becomes a subsidiary of the company and the management of Sapco has been taken over. And now company is working on improving the performance of SAPCO in the GNK region. The 6 million ton greenfield and brownfield expansion is on track.
The integrated unit at Panna where we are adding a 4 million ton synchronization unit is on track. The brownfield grinding locations of 1 million each at Panna, Amirpur and Payagraj are on track. And even the greenfield site at Bakshad in Bihar is on track. And by end of this calendar year mostly we should be able to start and complete the expansion looking to the growth in the putty volume and to met out the peak demand. The board also decided to go in for expansion of 40 by 6 lakh tonnes with a total capital outlay of 195 crores.
This will be set up in Rajasthan. This is to mete out the growth of putty. The balance sheet position is that we crossed IT as on 30th June stood at 5002 and 3 crores as compared to 5101 crores as on 31st March, the cash was 2407 crores as compared to 2536 crores. The net debt was higher at 2796 crores as compared to 2565 crores as on 31st March. The net debt to EBITDA as on 30th June however was 1.29 as compared to 1.30. And the debt equity. Net debt to equity was 0.44 as compared to 0.42.
These are the major highlights of the performance during the quarter. We will be happy to address your questions. Thank you.
Questions and Answers:
operator
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, if you wish to ask a question please press star and 1. The first question comes from the line of Amit Muraka from Access Capital.
Please go ahead.
Amit Murarka
Yeah. Hi. Good morning. Thanks for the opportunity. So firstly on the Panna line It was a 3.3 million ton line. Just wanted to understand like. So why and how did it expand to 4 million ton given that we are so close to commissioning.
Ajay Saraogi
No, no, it was always a 12,000 TPT.
Amit Murarka
Was it like. Because I think the Q4 PPT still mentioned 3.3 and in this quarter only it was mentioned as 4 actually.
Ajay Saraogi
Okay. The 4 million ton cooler capacity. Okay, fine, fine. Because I think it was initially announced as 10,000 TPD is what I remember.
And even the Q4 PPD mentioned it.
Sorry, maybe there is some. Because 10,000 TPD was the increase from 8 to 10,000 for line 1 which we did about a year back. But this has always been a 4 million tons.
Amit Murarka
Okay, thanks for the clarification there. And secondly, could you let us know what was the incentive booked in the quarter?
Ajay Saraogi
Yeah, incentive for the quarter was 85 crores. Okay. Okay. So I believe like last quarter it was mentioned as like 75 to 80 crore range. So in. So the new booking of incentives have come up this quarter.
Even the volumes are lower in QoQ. No, what happened that in the previous quarter, you know Aligarh unit where you know it has a limit, it has an overall ceiling. So that ceiling got exhausted by Q3. So there was no subsidy for the earlier unit in Q4. Okay, okay. There’s an annual cap on subsidy also.
Amit Murarka
Sure. Could you, could you help us understand like what are the various incentives on which plants basically are earning incentives right now and how long will they continue these incentives?
Ajay Saraogi
So the incentives, you know, we are getting one incentive in the north, which is for Nimbara line three and that is, that would only be available in, in this fiscal.
So, so that will get concluded. Otherwise we are entitled for subsidy for the three grinding locations, Aligarhpur and Payagra. Aligarh also I think is only one year is left because it was for seven years. It was commissioned in 2020. And then we are getting for Ujan and also increase of the PAN unit. Integrated PAN plant.
Amit Murarka
Sure, understood. So like also has it unit, right?
Ajay Saraogi
Yes. And PAN also. And sorry and UJAN also. Yes. And. And these will, given that these are newer units, fair to assume that these incentives will continue for few more years? Yes, sure.
Amit Murarka
And lastly, just very quickly on other expenses that was also quite low in the quarter. So like could you, could you help us understand like what are the plans for marketing spends and all which are low in the quarter.
Ajay Saraogi
So actually it will be, you know, higher going forward because all our major, you know, the marketing spends, you know, we have these dealer tours and all. So normally we plan the tours everything in the second quarter, which is the lean period. So the marketing, the other expenses will increase sequentially. So this is what we see that this second quarter would be a tough quarter, you know, where there is also scheduled maintenance of the kins as well as, you know, the branding expenses pre, you know, just the festive season.
So all that gets started in this, in this season. So we would be seeing increase in the expenses in Q2. Thank you. Thank you so much for the detailed explanation. We’ll come back. Thank you.
operator
Thank you. Ladies and gentlemen. If you wish to ask a question, please press star Enter one. The next question comes from the line of Divesh Agarwal from IIFL Securities. Please go ahead.
Devesh Agarwal
Thank you. Firstly, congratulations sir, on a good set of numbers. I just wanted to understand and firstly, what would be the reasonable breakup of volume sales volumes for 1Q
Ajay Saraogi
so regional broadly. We are not sharing the regional numbers.
Devesh Agarwal
So broadly will also help even if you give in some
Ajay Saraogi
Broadly we have given, you know, what has been the trend of increase in volumes as we saw in Central, you know, a growth of in volumes of over 50% and growth in the south because of a low base, all these numbers. But we are not sharing the exact regional numbers.
Devesh Agarwal
Sure, sir. And sir, the kind of capacity addition that we saw to debottlenecking with Jane. 0.5 million ton. What would be the potential at your other locations where you can increase capacity by debottle necking?
Ajay Saraogi
So we have just been one is as a part of the expansion in Central India, a 1 million ton capacity is being increased at home. That is one which is part of the expansion plan. So and we see that there is a potential in the south and of about 0.7 billion. So we are just working on that.
Devesh Agarwal
Right sir. And you mentioned in south we had a clinker sale this time.
Could you quantify sir, how much was clinker sale?
Ajay Saraogi
Clinker sale has been much higher than the previous quarter.
Devesh Agarwal
And no specific number?
Ajay Saraogi
No, no specific answer.
Devesh Agarwal
For your recent acquisitions both Toshali and cefco, what are the plans? Do you see any big opportunity there in terms of capacity addition or it will take time.
Ajay Saraogi
So we see an opportunity one. As we said in Toshali, we are still working out on the mining lease which we have not been successful so far. And we are also evaluating alternate option of a long term tie up of the raw material with the government of Odisha or you know, identify certain areas and if you know something comes for auction.
So that is the potential. And there as you said, if the limestone tie up is done, we have an opportunity of about 2 and a half to 3 million tons. As regards CEFCO is concerned, yes, we see an immediate opportunity for upgrading the kiln by about 300 to 400. It’s already it operates at about 6, 600, 650 tons per day. We can we see an opportunity to 850 to 900 tpg per day. So that is an immediate. But it has good limestone results and we are working out on the possibility, you know, how if and that we will take maybe a year down the line work out, see the market situation, how do we how we settle.
But we have the limestone and other facilities. So there is an opportunity of expansion up to 2, 2 and a half million tonnes in that region.
Devesh Agarwal
Right sir. And sir, post the one Q where you have delivered such strong volume growth, what would be our guidance or outlook for FY26 as a whole in terms of volume growth?
Ajay Saraogi
So we have given the guidance about 20 million in this financial year.
Devesh Agarwal
Okay, so you stick to that 20 million.
Yeah. And finally one last one, sir. In terms of your poster Panna expansion, where do you see the next level of expansion?
Ajay Saraogi
The three places that you mentioned, Jaisalmer, Odis and Karnataka.
Any progress that we have made and do we have visibility that next expansion will be taken at a particular location. Yeah, we are working out. We are close to finalizing and we shall be putting up, you know our options to the board very soon. And I think within very shortly once the board approvesment couldn’t be guided to us because we’ve done in central so more towards the north. But we are just so very soon. Once we are through with all the numbers and options we’ll put up to the board and get back to you.
Devesh Agarwal
Right, sir.
Thank you so much.
operator
Thank you. To ask a question, please press star and 1. The next question comes from the line of Vishal Vilaya from Bandhan Mutual Funds. Please go ahead. Vishal, I do apologize to interrupt you but your audio is too low. Could you please use your handset?
Vishal Biraia
Is this better?
operator
Yes, please go ahead.
Vishal Biraia
So just wanted to confirm the clinical capacity at Panna after this expansion. We would be at about. Would that be the right number?
Ajay Saraogi
Pardon? Because you don’t hear. Prashant to answer you can just.
Prashant Seth
No, I, I, I could not hear what number he spoke. Actually
Vishal Biraia
After the expansion of Clinker at Panna, what will be the capacity of clinker?
Prashant Seth
19 million tons.
Vishal Biraia
No, at Panna itself.
Prashant Seth
7.3. 7.3 million tons.
Vishal Biraia
7.3 million tons. Okay. And for total Clinker at the. After the commissioning of the Sipho plant, including that we will be close to 18 million tons at the end of 26.
March 26th. This financial.
Prashant Seth
No, no. 19. I am saying on a standalone basis. Then SAFCO is in the subsidiary. If we add then it will be close to 19.6 million or something.
Vishal Biraia
Okay. Okay. And just to reconfirm the number for Gray Cement this year after we commission all the Gus that you talked about, we’ll be close to 32 million tons.
Ajay Saraogi
Yeah. So we already. 25.26 million tons. And 6 million tons is average. So we’ll be 31.26. We have certain opportunities in the south which we are working out. And that materializes 32 million tons by FY26.
Vishal Biraia
Okay. Okay. And just some basic questions on paint. What is the cumulative investment that we’ve done in paint and what is the capacity that we’ve created as of now?
Ajay Saraogi
So the capacity. Prashant, you can answer this.
Prashant Seth
We have 60,000 kiloliters of capacity. And our investment total is close to 450 crores. Okay. And how much incremental do you plan to do here? We have an approval of 600 crores. So we, we will only. So we will be remaining would only be restricted up to additional 150 and by when do should we see that coming in? FY27.
operator
Thank you. Thank you. To ask a question please press star and 1. The next question comes from the line of Naveen Sahadev from ICIC Securities. Please go ahead.
Naveen Sahadev
And thank you for the opportunity. Also congratulations on a good set of numbers. My first question was on volumes so you said that central India has done much better. Is it that the industry itself had fairly strong growth or we have expanded our dealer network much further to take care of the upcoming expansion be it on the eastern part of the regions. So before the grinding units come up have we already started feeding those markets was my question?
Ajay Saraogi
Yeah, we have already started feeding with the expansion in view and so it is we expanded first we put up 4 million, then we expanded it to 6 million and now another adding another 6 million.
We have already you know doing a good volume in between we have entered Bihar and hopefully end of this fiscal excess we should be doing about close to a million tons maybe in Bihar.
Naveen Sahadev
And before the next question I just want to clarification you mentioned after because in the previous the previous participant out post expansion what will be the total clinker capacity in Panna and Prashant sir said 7.3. Shouldn’t it be 8 because 4 is what we have already done with line 1 and second line is 4 so it will be 8 million ton or am I missing something here?
Ajay Saraogi
No.
Line 1 is 10,000 tpd per day and line 2 is 12,000 tpd per day so line 1 is 3.3 million.
Naveen Sahadev
Understood? Understood, that’s clear. And sir you also mentioned potential of debottle making in south by about 0.7 to a million ton. So will it also be backed by some sort of a clinker debottle making there or it’s more on the.
Ajay Saraogi
Yeah, so we are working out on debottle making in south and other regions maybe we feel that about 0.7 to 1 million could be able to achieve by debottleneck at all locations and there will be some debottleneck both on the clinical side as well as human grinding.
Naveen Sahadev
My last question if I may margin in white is what I wanted to just point out because I believe sequentially there has been a pretty sharp drop in the white cement realizations if I understand this correctly. So has it also led to a sharp margin decline in the segment? And how should one then look at this segment given we are now looking at investing more capacity or more Capital to put up a putty grinding unit in Northwara.
Ajay Saraogi
So see as far as margins, yes, the white cement, we have seen the margins declining sequentially. But I think now as we see it has stagnated.
There is no further major dip in the bike cement margins. It’s ranging between 15 to 20%. And we feel that it will continue to be in that region. The investment is necessary to ensure that we maintain our market share. Otherwise today, last year, this year, our volume, our targeted volume is about 1.1 million. And the peak season, you know, the festival becomes closer to Diwali is always a peak season. And then we have peak season, you know, before the year end there is not to meet out the peak. The present capacity is barely able to meet all the peak season demand.
In fact, we have already started some volumes on tolling to meet the peak season demand. And we are envisaging a growth in Dubai in the Putti segment of between 7 to 10%. So with that growth in keeping that growth in mind, we will need additional capacity. Capacity.
Naveen Sahadev
Just one last question about the potential expansion plan. Now I understand there is a vision to reach up to 50 million tons. And you’ve highlighted that in, in the, I mean, you know, similar calls in the past. But with now our EBITDA averaging like, you know, almost nearing to 3,000 crore or anywhere between 2,500 to 3,000 crore annually.
Will it be fair to say that we can handle two projects at a time? Is the company really thinking on those lines? That apart from one project we can also look at having, you know, not just doing one project at a time, but can we can look at doing two projects at a time? Is the company thinking on those lines so that growth can come in faster?
Ajay Saraogi
Yes, you’re right. The company is thinking earlier we were actually taking projects after completion. So there was a gap, you know, maybe about two years. So, you know, 18 months when the project was getting completed, then we used to take up the next project.
Now, you know, with our capacity reaching 30 million tons and the cash flow supporting for the investment and with a view that we get to 50 million tons by 2030, I think we could be, you know, in a way adding up a project, announcing a project every year. So this would mean that, you know, there would be two projects going on at a particular time. It’s not that we will not be announcing two projects at one time, but in between, you know, when we are, we have already started work, we’ll take up the next project, not wait till completion of the project.
Naveen Sahadev
Thank You. Thank you so much.
operator
Thank you. To ask a question please press star and 1. The next question comes from the line of Sanjeev Singh from Modilal osal Financial Services Ltd. Please go ahead.
Sanjeev Singh
Good afternoon sir. Thanks for the opportunity. If we exclude the clinical volume in 1Q so how was the cement realizer movement compared to last quarter? So basically I want to understand how have been the price movements in different markets where we operate and compared to 1Q how have been the prices now?
Ajay Saraogi
So if you see the prices on an average have been more or less flat but because there has been increase in the south realization in this quarter. So the south has compensated though in the north and central there was a marginal, you know, pressure but not much.
And even now up till now, you know it’s not much change except some, a few, I mean very management. So. So it is not having any significant drop in pricing or anything. But still we have you know another one and a half months at least till end of August to see for the monsoon. We have to see that and we are hopeful. I think there could be only there should not be any major difference in the pricing. Yes, definitely there’s some pressure which is leading to some reduction in the non paid pricing. But beyond that as of now it is not much.
Sanjeev Singh
And secondly in this quarter we have a spend closer to 350400 capex. So how should we look at full year numbers in FY26? Will it be closer to 1700 cover. And also if you can guide on FY27 numbers. Thank you.
Prashant Seth
So this will be this year it will be close to 2000 crores and in next year presently we have the plans for the normal capex and the putty expansion what we have announced. So for all that it should be close to 600 crores as of now.
Sanjeev Singh
Got it. Thank you.
operator
Thank you. The next question comes from the line of Rishikesh from Kotak Mutual fund. Please go ahead.
Rishikesh
Hi, good morning. Possible to share Consol gross debt and net debt. Basically numbers are same because on the console we don’t have the borrowings and cash is also not there. Okay. Okay.
And secondly Mr. Sarogi spoke about company being comfortable taking probably two simultaneous expansions. So is there any internal thought in terms of what could be the potential borrowing we could be comfortable with or probably cap our borrowing. Anything. Probably any metrics on debt to ebitda, anything on that length.
Ajay Saraogi
So on the net debt to Ebitda as we said, you know today we are at about 1.3 net debt to EBITDA we are very cautious that whatever expansions we do, we try and keep the net debt to ebitda to OR below 2.
operator
Okay, thank you. Thank you. The next question comes from the line of Ritesh Shah from Envestech Capital. Please go ahead.
Ritesh Shah
Hi sir. Thank you for the opportunity. Couple of questions. Sir, can you give the total number for paints grouts and other sales and if you could break it up that would be great. Along with the EBITDA that we clocked in the last fiscal.
Ajay Saraogi
Now the paint numbers are there. The grout numbers. Grout is not part. So we will give you the paint numbers. Shan, that can be shared. You can give the paint numbers.
Prashant Seth
The paint numbers have already been shared. Last quarter we did 273 crores of the turnover of the paint. In the last fiscal and this quarter our paint turnover is 86 crores.
Ritesh Shah
Answer margins about 30%.
Ajay Saraogi
So 30%
Ritesh Shah
EBITDA margins,
Ajay Saraogi
gross margin. No gross margins.
Prashant Seth
Also we shared the numbers. Well, I think 45 crores of the EBITDA loss last year. And in this quarter it is a 10 crores of the loss.
Ritesh Shah
Okay, that’s useful. Sir, second is Saravi. Sir, you mentioned that north and central there was a marginal pressure in pricing. However in south the prices actually increased. Sir, how should one understand this dichotomy in pricing?
Ajay Saraogi
So I think see, we have to wait. We have to see what really happens in the monsoon. The monsoons are now as I said that there has been some pressure on non on trade pricing, marginal pressure on trade pricing.
But not significant enough. But we have to. We still have to wait and watch.
Ritesh Shah
Okay, sure. Sir, in the annual report you do make a mention of LC3 and PLC. These are two different types of cements, I presume. Sir, what are our plans over here and how should we understand this?
Ajay Saraogi
It is still at a very initial stage. We are working on it and we see on SU3 and what can be done. So it is still at, you know, at the pilot stage and maybe as a working on it.
Ritesh Shah
Last question. Do we utilize synthetic gypsum? If yes, what is the differential or the cost arbitrage that we derive out of it?
Ajay Saraogi
So gypsum, you know we are.
It’s a various mix across and depending on the availability and mixing of fixim we are manipulated. We use even imported gypsum chemicals. Gypsum, we are using local gypsum which is available from the mines. There is a huge combination of gypsum products.
Ritesh Shah
Sir, my question is do we, do we manufacture anything captively or do we
Ajay Saraogi
no, we are not manufacturing anything captively. No, no, nothing.
Naveen Sahadev
Okay. Okay. And sir, what will be the price price gap on imported synthetic gypsum versus what we get from hypothetically say Rajasthan state mineral something RSMM adjusted for the grade. Is there an element of cost savings over there?
Ajay Saraogi
Yes.
See again the purity part there is a difference. It affects when once you use an imported gypsum which is definitely very costly. But again it helps using reducing the clinker consumption and using more fly ash. So it does help. So we only see the thing only on a totality basis. The system cost may be higher but the overall cost economics is different.
Ritesh Shah
Sure. And for just last question, you indicated that we did certain tolling volumes in peak season for putty. So possible if you could quantify the number for full year last year.
Ajay Saraogi
So last year the tolling.
I don’t have the exact number available with me. But I think it was around 50,000 tons or something. I will get back when this is. I don’t have the number. Prashant, you have the number.
Ajay Saraogi
No, we don’t have the last year number.
Prashant Seth
I will share you the exact number.
Ritesh Shah
Sure sir. Thank you so much. All the very best. Thank you.
operator
Thank you. We take the next question from the line of Parve Kazi from Luama group. Please go ahead.
Parvez Akhtar Qazi
Hi, good afternoon sir and congratulations for a great set of numbers. So just two data specific questions. What was our real share this quarter and also the fuel mix in Q1.
Ajay Saraogi
Thank you. Fuel mix was like 60% pet coke in this quarter. And what was the real share? Rail share was 9. Real share was 11%. Perfect. Thanks. And all the best.
operator
Thank you. The next question comes from the line of Girija Shankarai from your securities. Please go ahead.
Girija Shankar
Thanks for taking my question. So just wanted to check. You said you know if we use inputted. So that is going to increase your flyers percentage and it will reduce your clinker consumption strength this time. How much is the percentage of you know, the flyers in the total clinical predictions
Ajay Saraogi
Go up to a Flyer up to 35%.
Girija Shankar
Okay.
Ajay Saraogi
This is 35%. We can go up to that.
Girija Shankar
But it is right now we are. Your. Our flyer Percentage is below 35% you are saying?
Ajay Saraogi
Yeah, it depends on an average. When we talk about, you know, it depends on the location and grinding location.
When we are talking east grinding location where we are getting what gypsum is available. It helps in that.
Girija Shankar
Okay. Okay. And my next question is with regards to this power and fuel question. There is a sharp increase in power and fuel Cost in quarter on quarter basis as emerged for the freight cost. Also we didn’t see any kind of savings in freight. Any particular reason in that?
Ajay Saraogi
No. See power and fuel cost increase mean. There are two reasons. One reason is because of the increase in the Petco price with the average consumption rate has gone up.
And second is like the balanced clinker production in this quarter. I mean if you are comparing QOQ basis. So last quarter it was low because we consumed some clinker from the stocks and this quarter the clinker production was balanced. So these are the reasons for increase in the power and fuel cost and freight cost increases. Like our lead has gone up by 2km because of seeding the bear markets and all that. And that has resulted into a part time freight increase by around 6 rupees.
Girija Shankar
Okay and my last question will be for the. You know you mentioned in your opening remark central India has done well.
So is this. We have done it. We have on a company level this is good for our company or overall industry has done well in central India. And what was that percentage you mentioned? I Forgot.
Ajay Saraogi
It’s over 50% in Central India. And this is because we are opening up the entire market we have already making. We are trying to grow our market share across all the entire UP MP and also in the and enter the eastern region through Bihar Grande which is coming up. So and a new capacity is going to come up in next few months.
You know maybe just six months down the line we’ll have a new capacity coming up. So unless you know we, we have built. We have to strengthen the entire region otherwise how will we able to supply material from the new plants.
Girija Shankar
Thank you very much. But the last question is are you able can you give us the regional, the vessel ablation if you can provide us.
Ajay Saraogi
No, no we don’t. We are not sharing capacity numbers.
Girija Shankar
Not an issue. Thank you very much. Thank you very much.
operator
Thank you. The next question comes from the line of Shravan Shah from Dollar Capital. Please go ahead.
Shravan Shah
Hi sir. First of all congratulations on a great set of numbers. Most of the questions answered, couple of things to clarify. So first on the cost saving what we have talked about last time, 150 to 200 rupees over next two to three years and this year FY26 on an average we were looking at 40 to 50 rupees per ton. So that remains intact. Yeah, yeah, that remains intact during this fiscal get about 40 to 50 rupees in terms of cost saving. Okay, great. And in terms of the green Share which is currently at 52% so that we will be reaching to 60 odd percent by end of FY26.
Yeah, yeah. So on the. On the green power also which is again as a part of cost savings when we say so we should be closer to 60% by end of this discussion. Okay, great. Second sir, once this 6 million ton will will start by end of this December. So is it fair roughly to say in FR27 one can see incrementally close to a kind of a 3 million ton a volume. From that one can look at kind of a 50 utilization. Is that a way one can look at?
Ajay Saraogi
Definitely that will be about. I mean it’s too early to say but definitely.
I mean this is where we are working at and closer to the you know end of this fiscal when we try definitely we are working towards that direction only. Whether it is 23 or it is 22 and a half it just work out.
Prashant Seth
And yeah, actually there will be some setup of the quantity which we are already feeding into that market in BR already we already have reached a particular level. So for reaching the 50% utilization not the fresh volume has to come up to that extent.
Shravan Shah
Okay, okay, okay, okay. Got it, got it. And then secondly sir, last time we had talk about that the UAE plant likely to kind of a pro a quarterly bid of 1520 or so for this quarter.
Is it? We have already reached to that EBITDA positive 1520 or crore.
Ajay Saraogi
Yes, yes, we have already reached. In fact this pujada working I think for the year as a whole should be around 80 crores or so. 80 to 90 crores. Great, great sir, great. Second on the paint whatever we have said in terms of the power a revenue target for 450 odd crore in 26 and 600 crore 27 and given by FY27 that remains intact. Yeah, as of. Yes, that remains intact.
Shravan Shah
Okay, okay. And then lastly if you can help us as you have said that the other expenses so one means marketing second maintenance in the Q2 will will increase.
Any any idea is it fair just for 4050 crore QoQ increase. That’s the way one can look at.
Ajay Saraogi
Yeah. It could be around that region. The exact numbers are not but yes, you’re right.
operator
Thank you. Ladies and gentlemen, A final reminder. If you wish to ask a question, please press star and 1. The next question comes from the line of Tejas Pradhan from Citigroup. Please go ahead.
Tejas Pradhan
Yeah. Hi sir, could you share what would be the industry volume growth for the different regions you operate for the first quarter because you mentioned north there was some degrowth. Right. So how would it be for like all the, all the regions?
Ajay Saraogi
So we have to get the industry numbers as yet, you know we are not getting industry numbers. We will know very soon. I think we are no see over see. I think overall we are, we would be but normally when we see each region we are able to you know maintain our market share.
It’s not that we have lost market share in any of the regions. In fact we have actually in improved upon our market share definitely in the central and north and other regions we have not lost the market share. The north market is that the growth has not been in the market. Growth is a major concern.
Tejas Pradhan
Sure, sure. Thanks. And lastly for the Putti expansion, assuming the current profitability in that business, what would be the rough IRR that would be there from the expansion project that you have undertaken?
Ajay Saraogi
Ir will be, you know what 15%.
Tejas Pradhan
Sure.
Thanks.
operator
Thanks. Thank you. The next question comes from the line of Pratik Kumar from Jeffries. Please go ahead.
Prateek Kumar
Yeah and congrats for the present. My first question is on clarification on incentives. So based on current in it around 300 crore kind of incentive is expected like for next 3 to 5 years based on your expansion.
Ajay Saraogi
Yeah, yeah. This is what we see. Yes.
Prateek Kumar
Okay, next question is on a central expansion. So incrementally again your trade segment has like sort of been stable currently. But the incremental volumes in central is this non trade trade is going to change which may impact your profitability in the market or how do you look at it?
Ajay Saraogi
No, see incrementally.
Yes. Today you know, say for example from Bihar because the branding unit is not there so we’re not doing much of non trade. But definitely there will be some non trade volumes coming up. But I think we are fairly confident we will be able to maintain the trade non trade ratio.
Prateek Kumar
And last question on your white segment. So the expectation of Asian trends volumes going off your, I mean customer base, has that happened or is going to gradually happen over next couple of quarters?
Ajay Saraogi
It has not been. I, I think they just. It will start hitting us from mainly from Q3 onwards.
So they are about to and they are doing the trial runs what we have heard. So I think there will be gradually because even the orders from India reducing the orders from Q3. So we will see that you know the number in the white cement from Q3 onwards.
Prateek Kumar
And just one last question if I may. The sale of non cost of traded goods was a much higher number at one point. Five billion this, this quarter, around one billion. What is the reason around that?
Ajay Saraogi
traded goods, you know is actually, you know we are getting a lot of tooling for all our value added products including paints.
The traded goods in the standalone is coming, you know, whatever is being manufactured because the platform of JK cement is being used. So when there is a platform of JK Cement using standalone it is the goods which gets transferred from the Max factory and in JPCMH standalone books it is a purchase of rated goods.
Prateek Kumar
Sure. Thank you. That said.
operator
Thank you Ladies and gentlemen, in the interest of time and fairness to others we request you to restrict to one question for participants. The next question comes from the line of Rajesh Ravi from HDFC Securities. Please go ahead.
Rajesh Ravi
Good afternoon. Congrats on great set of numbers. My first question is predominantly on the this volume guidance which you have given 20 million ton that remains or there is an upward bias given that the strongholding growth have delivered in.
Ajay Saraogi
So we still take 20 million alone because we have a lean period. We have to see monsoon is a lean period. We have to see how the growth remains in that. But as of now we stick to the earlier guidance of 20 million.
Rajesh Ravi
Just a follow up question. See there’s a lot of capacities which are coming up in North Central.
So what is the outlook given that you are also bringing up almost 6 million ton capacities across the Central and east markets.
Ajay Saraogi
Yeah.
Rajesh Ravi
So what is your outlook on the pricing Trend for next 12 years given that you know, simultaneous ramp up of various capacities 1next 12 years.
Ajay Saraogi
So see 1, the market is also growing. If you look at the total growth in the market, see north and Central being sort of a twin market. If you look at the overall growth in that market, there is an incremental requirement in that market of about 12 to 15 million tons.
So as the capacity is gradually ramp up we don’t see. Yes, there could be some periodical but otherwise we are not, we don’t foresee any major competitive which may affect the profitability.
operator
Thank you. The next question comes from the line of Alok Shah from SRE pms. Please go ahead.
Aalok Shah
Hello.
operator
Yes, hello. Please go ahead.
Aalok Shah
Yeah, so I just want to understand the reasons of increasing EBITDA by 20% this quarter and is this sustainable for the current fiscal year? And secondly that we have targeted for 75% of green power by Green power. So any guidance of EBITDA increase that we can expect? Can you just give a ballpark number?
Ajay Saraogi
So you know we do expect that with the present price prices continue and prices continue to if they further increase that definitely the EBITDA should also be increasing as regards the green power, definitely 75%. We have given the target for 2030. We would be closer to 60 by FY26.
And the plans which we have, I think this target should be will be met well before 2030.
operator
Thank you. The next question comes from the line of Rahel Shah from Crown Capital. Please go ahead.
Rahil Shah
Yes, hi, good afternoon. My question is also pertaining to the EBITDA per ton combined EBITDA per ton outlook. If you can share something on that. Okay.
Ajay Saraogi
I think we already have given our views on that. Yes.
Rahil Shah
Any certain number you’d like to give up for the full year?
Ajay Saraogi
Oh, see number we have to see when I think number is would be in line with the industry growth. And rather than we give any particular number. Okay, okay.
operator
All right.
Rahil Shah
Thank you.
operator
Thank you. The next question comes from the line of Siddharth Malhotra from Kotak Securities. Please go ahead.
Siddharth Malhotra
So just a quick question. I read in our annual report that we signed an agreement with GMBC for 50 million tons of limestone reserves. Could you just elaborate on our plans pertaining to that particular limestone will that we used in some of our existing plants, maybe plans some additional new plants in the western region? Perhaps what are, what is our end goal for that 250 million tons.
Ajay Saraogi
So and what you see we have entered, we have got a limestone reserve and an agreement for that limestone we will see that will help us in our future expansion immediately.
We do not have any plants. So as we, you know, plan when we as a first step we have a plan for a 50 million ton expansion to reach 15 million tons of capacity. And as we are working towards that then we have to going in next two years time we have to come up what will be our next goal of plans. So it may unless you have tie up of limestone deposits, you cannot make any concrete plans. So this is for a long term plan. So we continue to apply for potential limestone reserves once because we as of now we have plans to go organically.
We don’t have any plans to go inorganic at all.
Siddharth Malhotra
Okay, understood. And just with reference to the location of this license, are there any plans on the angle for expansion into the western region, more particularly Gujarat?
Ajay Saraogi
Yeah, that could be. And as of now we don’t have an immediate plan to invest in there, but going forward, maybe.
Siddharth Malhotra
Yes. Thank you. Thank you.
operator
Thank you. The next question comes from the line of part Bhav sir from Investec. Please go ahead.
Bhavsar
Hi sir. So thank you for the opportunity. Just One question I wanted some like color on non trade demand. So if you see like even year on year and quarter on quarter non trade share have has increased for us. So wanted a sense on demand of non trade segment. And also the pricing like has it been more stickier than trade segment or even the price hikes have been more higher than than the trade segment. Yeah, a color on the non tech sector.
Ajay Saraogi
So see again as government spending is in there so the demand, if overall demand increases only the non intake segment then to maintain the market share we will have to enter that segment and get.
Otherwise it would be very difficult to get the entire growth from the trade segment.
As regards the pricing, you know the non trade pricing has been also, you know because it becomes quite intensive sometimes and very aggressive and the prices do fall. But when with this there has also been increase in the non trade pricing over the last two, three months when we are seeing the increase in the trade pricing because the increase, the pricing of both trade and non trade have to increase in tandem. It cannot, the differential cannot be very high.
Bhavsar
Sir, what would be the differential right now versus what it was last year?
Ajay Saraogi
Normally the normal trend is you know of the difference between paid non paid.
It’s about 20 to 25 rupees a bag.
Bhavsar
Okay. And this is, this has been stable even since last one year, one, two years
Ajay Saraogi
it has not been so whenever the difference has been fluctuating. So that definitely affects as we had seen that in the past the trade prices were going down. The differential between trade and non trade had also increased. You know sometimes even up to 40, 50, 60 rupees a bag. Sometimes it can go in particular region, 70, 80 rupees. So it is quite fluctuating.
Bhavsar
Perfect sir, those are my questions. Thank you.
operator
Thank you. The next question comes from the line of Amit Muraka from Access Capital. Please go ahead.
Amit Murarka
So just on the follow up question on volumes you mentioned that you’re scaling up your volumes in Bihar as well. And there is a new grinding unit of 3 million and that will come up. So like will. Will this new grinding unit have incentives as well? Like particularly as we have already scaled up decent volumes over there.
Ajay Saraogi
Yeah, the grinding unit. There is a incentive scheme and once we commission the grinding unit. So we have already applied and we should be getting certain incentives.
operator
Thank you. Ladies and gentlemen. We take the last question from the line of Ritesh Shah from Envec Capital. Please go ahead.
Ritesh Shah
Yeah, so just a quick one. Would it be possible for you to quantify the trade and non trade price gap? In North Central and south.
Ajay Saraogi
No. So it varies, you know from time to time and very difficult. As I say average 20, 25 rupees is a normal trend but you know when the prices fluctuate gets it is quite different from time to time.
Ritesh Shah
Okay. And sir, would you like to put any timelines on the j optionality that we have?
Ajay Saraogi
You have the timeline. I think whatever options are there where you should within very soon I think the management should take a call on that and put up with the board.
operator
Thank you. Ladies and gentlemen. We take that as the last question and conclude the question and answer session. I now hand the conference over to Mr. Vaibhav Agarwal from Philip Capital India Private Limited for closing comments.
Vaibhav Bhav Agarwal
Yeah, thank you. On behalf of Philip Capital India Private Limited, we’d like to thank the manager J.K. simon for the call and also many thanks for joining. Thank you very much sir. Rani may now conclude the call. Thank you. Yeah. Thank you everyone for joining the call. Thank you. Thank you.
operator
Thank you sir. On behalf of Philip Capital India Private Limited, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.
Ajay Saraogi
Thank you.