Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
J.K.CEMENT LTD (NSE: JKCEMENT) Q3 2026 Earnings Call dated Jan. 19, 2026
Corporate Participants:
Ajay Kumar Saraogi — Deputy Managing Director and Chief Financial Officer
Analysts:
Vaibhav Agarwal — Analyst
Amit Murarka — Analyst
Unidentified Participant
Navin Sahadev — Analyst
Kunal Shah — Analyst
Unidentified Participant
Akshay Shetty — Analyst
Harshal Mehta — Analyst
Parvez Qazi — Analyst
Rajesh Ravi — Analyst
Sanjeev Singh — Analyst
Ritesh Shah — Analyst
Siddharth Malhotra — Analyst
Presentation:
Operator
Ladies and gentlemen, good evening and welcome to JK Siemens earnings conference call for the quarter and nine months ended 31st December 2000 hosted by Philip Capital India Private Limited. As a reminder, all participant lines will be 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 an operator by pressing Start and zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Vaibhav Agarwal from Philip Capital India Private Limited. Thank you. And over to you sir.
Vaibhav Agarwal — Analyst
Thank you. Good evening everyone. On behalf of Philip Capital India Private Limited we welcome you to the Q3 and 9 month FY26 call of JK Cement Limited. On the call we have with us Mr. Ajay Kumar Sarahi, Deputy Managing Director and CFO and Mr. Prashant Seth, President Business Information and Investor Relations and JK Cement. I would like to mention on behalf of JK Cement and its management that certain statements that may be made or discussed on today’s conference call may May be forward looking statements related to future development and statements which are based on current management expectations.
These statements are subject to a number of risks, uncertainties and other important factors which may cause actual developments and results to differ materially from the statements made. JKC 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 now hand over the floor to the Manager of JK Simon for the opening remarks which will be followed by. Direct Q and A.
Thank you and all of you sir,
Ajay Kumar Saraogi — Deputy Managing Director and Chief Financial Officer
Thank you. Vaibhav. Good evening and welcome to Q3 call. The board of directors met on 17 January to review the working for the quarter ended 31 December 20, 25 and nine month period ended 31 December 20. The major highlights are Standard loan. The net sales are higher by 14% over a previous quarter at 3132 crores as 2754 crores and year on year it is higher by 19% as the the number was comparative numbers are 3132 and 2630. For the nine month period the net sales is higher by 19% at 8555 crores as compared to 7542 crores.
The EBITDA during this quarter was 536 crores as compared to 440 crores in the previous quarter an increase of 22% and it is higher at 10% year on year 536 as against 486 in the previous year. For the nine month period the EBITDA is 1648 crore as compared to 1232 crores an increase of 34%. The comparative margins are for this quarter 17.1% previous quarter 15.9% previous year 18.4%. For the nine month period the Ebitda is 18.4 versus 16.3 in the previous year. After deducting depreciation, finance cost and Exceptional Item.
Exceptional item is towards the Labor New Labor Code liability. The profit before tax is higher at 276 crores as compared to 261 crores and it was lower by 5% at 290 crores it was in the previous year. For the nine month period the profit before tax is 1034 crores as against 637 crores an increase of 62%. The EPS for this quarter is 23 rupees 30 paisa as compared to 22 rupees 70 paisa. It was 25 rupees 80 paisa in the previous year and for the nine month period it is 89 rupees 10 paisa as compared to 56 rupees 70 paisa.
The EBITDA per ton is 928 in this quarter as compared to 902 in the previous quarter. Previous year it was 1022 and for the nine month period it Is 1022 was an increase of 14% as compared to 896 in the previous year. As far as the consolidated results are concerned the net sale in this quarter is higher by 15% so at 3338.3crores as compared to 2940crores and even as per the as compared to previous year it’s up by 20% and for the nine month period the net sale is higher by 19% as 9565 crores as compared to 8028 crores.
The EBITDA of a consolidated EBITDA is 558 crores versus 447 in the previous quarter and year on year it was 492. For the nine month period it is 1692 crores and previous year it was 1262 crores an increase of 34%. If we consider. If we look at the profit before tax consolidated is 268 for the quarter as compared to 243 and 279 in the previous quarter. 1000 crores for the nine month period as compared to 707 crores in the previous nine month period. This profit after tax for the quarter and considers a new labor code liability of 47.8 crores.
If you look at the volume numbers, the grade numbers quarter on quarter it is higher by 20% and year on year 23% and the White business on quarter on quarter is higher by 15% and year on year 13%. As regards the project, the brownfield 6 million ton expansion in central India. Out of this the clinicalization unit of 3.3 million tons and 3 million tons of grinding 1 million ton each at Panna, Amirpur and Priyagraj have already been commissioned. The Baksar greenfield grinding is advanced stage of completion and we feel that within next 30 days this should get commissioned.
So with this we will buy. We will. We are confident that all the remaining work of the project at panna like OLBC etc. Would also get commissioned within and by end of February the entire work would be completed. We have undertaken greenfield expansion at Jaisalmer. So here the work has already started in full swing at the integrated site. The orders for main plant and equipment have already been placed and the civilization work has already started. And we are hopeful that by. In the by FY first by September 27, within September 27 this should get commissioned.
We have. We are soon going to start work at both the grinding locations in Punjab and Rajasthan. So that also we are confident that by September 27th we should be able to commission the same. As regards, we have also taken up a greenfield world Putti plant in Rajasthan and the work on same has already been started and we expect that by end of by September 26th we should be able to commission this 4 lakh tonne additional wall putty plant. These are the major highlights for the quarter. If you have any questions we’ll be happy to address the same.
Thank.
Questions and Answers:
Operator
You. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone Telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Amit Murarka from Access Capital. Please go ahead.
Amit Murarka
Yeah, hi, good evening. Thanks for the opportunity. Just on incentives booked like could you give that number for Q3?
Unidentified Participant
Q3 number of incentive is lower on account of the GST rate cut and the impact is around 25 crores. So last quarter number was 86 crores and this quarter it is. Yeah,
Ajay Kumar Saraogi
It’s 60 crores.
Amit Murarka
It was 86 crores in Q2 you mean?
Navin Sahadev
Yeah.
Amit Murarka
Okay. And it’s 60 now. So 60 should be the 100 or it will go up now with the bugsar unit starting in this quarter
Ajay Kumar Saraogi
I. Think see Bucksar first we would be taking the the project GST credit. So in this fiscal we don’t see. So this run rate of 60 should be there this quarter.
Amit Murarka
Okay. Also on non costs. So in this quarter your other expenses have declined quite sharply. While you explained in Q2 that it was a bit elevated in Q2 but Q3 seems actually a little bit lower than what was generally expected to come through. So is it like some marketing spends kind of being lower in the quarter or anything like that which led to this lower number or this is a normal number to think of.
Ajay Kumar Saraogi
So there’s been some marketing spend is lower because you know it was taken up in September it was higher especially in the white business. Also we see that there is a dip in the branding cost but in this quarter this is. I think it will be higher than Q3.
Amit Murarka
Okay. And this last question on for. For Panna line to commissioning. So your capacity mentioned in the Press release is 3.3 million tons but you have been saying that it has potential to do 4. So by when can we expect that 4 million ton potential to kind of get unlocked? Will it be through debottlenecking or how will it happen?
Ajay Kumar Saraogi
See it takes some time. One year I think we don’t need the immediately I think we would be seeing once we run the capacity at optimal rate for about six months or so. So maybe in the next fiscal. It is end of next fiscal that we will see the possibility how we accelerated to, you know, higher capacity to about 4 million tons. But at at this point of time let’s we take it as 3.3 million.
Amit Murarka
Sure. But some additional equipment will be required to be added to get to for.
Ajay Kumar Saraogi
No, no no, nothing. Not no non measure capex.
Amit Murarka
Oh okay, thanks a lot. I’ll come back in the queue.
Operator
Thank you. Ladies and gentlemen, to ask a question you may press star and 1. The next question is from the line of Kunal Shah from Dam Capital. Please go ahead.
Kunal Shah
Yeah hi sir, couple of questions. So beginning with the mid teens sort of a base of volume growth which you have achieved during F26 or will be achieving, you know what sort of growth now are we targeting over F26 to 28 from a volume perspective.
Ajay Kumar Saraogi
Pardon? I didn’t get you.
Kunal Shah
So with the mid teen days of volume growth that we will achieve during F26 on the gray cement what sort of a growth are we targeting for 27 and 28?
Ajay Kumar Saraogi
So see again we expect the growth to be in double digits. Mid teens may not be possible but definitely like in FY26 we end up at 20 million and we are seeing maybe early teens, maybe closer to 23 million tonnes, 22 and a half to 23 million tonnes and 25 and a half as we hope and it should be anything ranging between 12 to 15% growth.
Kunal Shah
Hello.
Ajay Kumar Saraogi
Yeah,
Kunal Shah
Yeah,
Unidentified Participant
Sorry.
Kunal Shah
Yeah and secondly on you know the Capex bit, you know we had mentioned that roughly 2000 crores of net debt would be the addition during F27 due to the Jason made capex broadly. Now would that be the peak number or there are chances of that going up as well during F28 given you know we would need or want to sort of fast track our south expansion. So all I’m just trying to understand is how the management is thinking between balance sheet over 27, 28 versus growth.
Ajay Kumar Saraogi
No, see as far as we are confident. Yes definitely post commissioning of Panna we would like to take up the further brownfield expansion and maybe it looks like more as you mentioned in the in Karnataka where we are mostly almost you know sold out. So that looks. But as far as if we see the our debt profile and net debt to ebitda as of 31st December we are at 1.41 and I think at by March it could be around 1.6 or something. And next year also FY27 it should be closer to 2 or these 2 I think and we would get incremental volumes.
Yes because of grainfield Capex is higher, we are not concerned but we will not delay, we’ll definitely keep a watch on the balance sheet. But I think our journey for 50 million still I don’t think so many headwinds coming against that. We should be able, we should Be on track for that.
Kunal Shah
Understood. This is helpful. And lastly just one bookkeeping. So in the like during the third quarter, you know you lost about 1 1/2 2% odd realization. I mean just adjusting with the incentives also. But how much of that have we have we been able to Recover during the first 15, 20 odd days of Jan? I mean through these various price hikes. If you could just help on that.
Ajay Kumar Saraogi
Also the price hikes have been there but we don’t gain on the incentives.
Kunal Shah
No, no, which is fine. I’m just talking of adjusting for incentives.
Ajay Kumar Saraogi
Pardon? Adjusting
Unidentified Participant
For incentives,
Kunal Shah
Adjusting for the ex incentives. I’m saying on the gray cement X incentives like the realization that we have lost. How much have we been able to recover if any during the first fortnight of Jan?
Ajay Kumar Saraogi
Yeah, we have been able to recover that. I think we have the numbers but I think there is a good because the major recovery has been in the non trade sales. Right. So that that should definitely be there.
Kunal Shah
Understood. Sure sir, thanks. This is very helpful.
Operator
Thank you. To ask a question you may please press Star and one. The next question is from the line of Akshay Shetty from Mediceps. Please go ahead.
Akshay Shetty
Good evening sir. Thank you for taking my question. I have only one question mainly on the industry trends. Sir, from an industry perspective, how are you seeing demand strengths over next two to three quarters across key. Across key regions. And also like with the multiple players announcing capacity additions, how do you see the supply situation evolving? Do you expect pricing discipline to sustain or there could be some pricing pressure increase in certain markets.
Ajay Kumar Saraogi
So presently as you said regarding demand position in the next 2, 3/4 we are seeing definitely a good demand in this quarter. So the March quarter, I think it could be one of the best quarters what we have ever seen. So it looks like the March and then definitely as the cycle goes, you know, with the March hangover though it’s a good construction period. But marginally in April the volume goes because there’s a lot of inventory of March which is there in the market. But we do expect that year on year because the volumes have been lower in the April, June and July September quarter.
This year the volume should be better year on year definitely 7, 8%. That is for the industry. So this quarter the growth because the base is also high. So year on year growth maybe not 8%. Could be 6, 7%. Yeah. Thank you sir. That’s all from my sir,
Operator
Thank you. Participants, you may please press star and one to ask a question. Now the next question is from the line of Harshal Mehta from Asian Market Securities. Please go ahead.
Harshal Mehta
Hi sir. Thank you for the opportunity. Three questions from my first in terms of you seeing for the couple of. Quarters, you know a lot of expansions being around in north especially from FY 2010, FY 29 perspective. So how do you see industry pricing discipline and pricing trend? That was one second in terms of booking, what is our current CC ratio and do we see any risk in terms of tinker shortage for H2FY27? That was second. And lastly in terms of non trade we have seen like very sharp jump this quarter.
So do we expect a non trade share to remain at these levels or we expect it to inch up back or inch down back basically to earlier levels? That was the third question.
Ajay Kumar Saraogi
So on your first question, lot of capacities which are coming up. Yes, a lot of capacity is happening and if we really see if we look at the demand growth and say 7% or 8% north being one of the best markets. So even north requires an incremental 1012 trans incremental volume every year. So yes man, depending on the capacity which is coming up there are. It takes time. I think there should not be much pressure unless you know one or two capacities bunching up come up one time at a time. It may have some pressure for a quarter or two, not beyond that.
But still we do not see any major concerns as of now.
Harshal Mehta
On the CC ratio 200 if you. Can help with that. And do we any risk of clinker. Shortage in H227C
Unidentified Participant
Ratio is like 67% and we do not have the clinker shorted. We have a complete clinker backup for our cement capacity. Hello,
Harshal Mehta
Another wanted part. If you can help with that.
Ajay Kumar Saraogi
The non trade. Yes, see again non trade was muted for some time. Now it also at the year end, you know every. At every level the annual budget has to be exhausted. So this is also one of the reasons for a spurt in the non trade demand. And then and last year it was also muted because you know because of the elections. You know the budgets have to be re approved. Now most of the states election cycle is also is over. So I think the non trade demand going forward should be good and it should go in tandem with the cement consumption growth.
Thanks
Harshal Mehta
And all the best.
Operator
Thank you. To ask question you may press star and 1. The next question is from the line of Patanjali Srinivasan from Sundaram Mutual Fund. Please go ahead.
Ajay Kumar Saraogi
Thank you for the opportunity sir. So I just wanted to know how lead distance would change for us and how logistics cost will change post commissioning of Buck sir plant. Because I believe we have
Unidentified Participant
Been seeding this market for some time from Panna so can you give me some color on this?
Ajay Kumar Saraogi
So after commissioning of Baksar. Yes. The lead distance for central plant should definitely reduce the. Because we have been treating from Prayagraj and others. So we sent Clinker directly to Bakshar. So that will give definitely a benefit. Even as we are seeing, you know there has been a reduction in lead distance but the freight per ton of per km is different in different states. So actually in this part the pattern per km freight being higher. So all this may have a. It depends on the mix but definitely with the Buckshire commissioning we should see that both reduction in lead distance as well as some reduction in the freight costs.
Kunal Shah
Got it sir. And was there any volumes from Panna line to this quarter or was it only from the existing plants?
Ajay Kumar Saraogi
So there’s been some in this quarter itself there was some Clinker production of over one and a half lakh tons from Panna Line 2. And as we had already commissioned Amirpur so there were some dispatches, incremental dispatches from Amherpur also and then this quadrant.
Unidentified Participant
What is the timeline you can expect for this ramp up for the plant? Because I believe there’s some small works are still pending so.
Ajay Kumar Saraogi
Pending where?
Unidentified Participant
At Panna line two.
Ajay Kumar Saraogi
Yeah, so Panna line two I said you know the waste sheet and the OLBC pending which is all the other remaining work at the plant side which will get commissioned within February.
Kunal Shah
Oh got it sir. And incentives for next year what will be our expectation?
Ajay Kumar Saraogi
Actually it may incentives will definitely go down on a per turn basis with the increased volume and everything and reduction in. But we expect that once we have the eligibility and all the units start getting with Buck sir eligibility there our annual amount which had you know on the present had reduced from 300 plus to about 240 crores will should again go up to 300 crores.
Akshay Shetty
It may
Ajay Kumar Saraogi
Not be fully in FY27. It may be a bit later. A quarter or two difference could be there. But our you know exit run rate of FY27 that could be 75 crores quarterly.
Kunal Shah
Got
Unidentified Participant
It sir. Sir, and just one last question. Like our volume growth has been very good. It has been like significantly higher. Any particular region where we have been able to like do better or where we have seen that growth is stronger versus other regions could give some comparatives here.
Ajay Kumar Saraogi
No, see major growth is coming from central India and as we are doing an expansion, definitely we need to build up our customer base and our sales across you know, all segments for even non trade. So you know, planning for a long term relationship with long term players. Also we have built up those relationships which has resulted in a higher, you know, volume growth. But wherever, yes, in this journey somewhere there are non trade prices being under pressure. The overall realization have been a marginally lower.
Unidentified Participant
Got it sir. And just one last question Sir. Guidance for 26, we are not changing. We’re sticking to 20 million. And any reason why? Because we seem to be like doing very high in terms of nine months.
Ajay Kumar Saraogi
So we are not sharing any guidance on the volume numbers for FY26.
Navin Sahadev
Okay. Sorry sir. Thank you.
Operator
Thank you. The next question is from the line of Nick Navin Sahade from ICIC Securities. Please go ahead.
Ajay Kumar Saraogi
Hello.
Operator
Yes sir, you’re audible. Please go ahead.
Ajay Kumar Saraogi
Yeah. Good evening sir and thank you for the opportunity. Thank you for the opportunity. Sir, a couple of questions. So first was that I think for nine months our volume growth is already 18 19%. Should we look at it only from sales, incremental sales from new markets or new regions that we got or we got
Parvez Qazi
To like you know, we got benefit or we could increase our market share in the existing markets as well. That was my question first.
Ajay Kumar Saraogi
So if you look at. Yes, the major gains in the market has been from central India. So where you know we are reaching out, we are going to new markets. And as we had entered when looking to Bihar and expansion. So we had already started, you know making our footprint stronger in eastern UP and Bihar. So these are the. And again we will continue to grow over there because we feel that we are still not a major player in the market. So we would like to consolidate our position and as soon as possible get into if not double digits market share at least mid high market share in all of the market in the entire market.
So that has been the major areas where we have grown and we have. When our we have grown in the south there was. The demand was good. So we have. Our numbers are higher in the south though we have also grown in the north but in tandem with the market.
Parvez Qazi
Okay, so in north you are saying our market share remained intact while we would have gained in center. South and east of course was altogether a new market. Is that correct? The new market.
Ajay Kumar Saraogi
And it was. Yeah, it was not there. It’s a very small number. So that is definitely that small number of Toshali. But it does help in minutes and increasing the percentage. But again it is not material.
Unidentified Participant
Right sir. For the north market our candlesticks are basically suggesting that December was probably a record month in the sense that like you know we could,
Ajay Kumar Saraogi
We could see volumes which were similar to even March for some of the players. March 25th. So practically we are nearly, you know we have, it has been good. All our plant mills and kins have been operating.
Parvez Qazi
Of
Rajesh Ravi
Course
Ajay Kumar Saraogi
I think it’s a good market. The demand is good and it would be not only for us. I think for most of the north players it should be this quarter could be a sort of a sold out situation as was in the last year.
Parvez Qazi
My question was around pricing that if that was the kind of record numbers
Ajay Kumar Saraogi
We saw. But I think pricing failed to impress in the month of December and January. I believe there is some price hike. So my, my question was
Parvez Qazi
What convinces us that like you know we’ll be able to see a better pricing in January and February if it failed to impress in December?
Ajay Kumar Saraogi
Yeah, definitely that that’s a big possibility and I hope it has happened because one, in the last few months the non trade pricing there had been a lot of pressure on the non trade pricing. So the difference between trade non trade had increased a lot which was putting pressure on the trade pricing. Still, you know, the trade prices did not fall despite the huge difference. But now since the non trade with the improved demand, the non trade prices have improved. This should definitely be the platform for a possible increase in the trade prices.
And looking to the demand there is all possibility that the trade pricing should increase.
Navin Sahadev
Understood. And just one more question if I may. From your presentation I was looking at the data on Pet
Ajay Kumar Saraogi
Coke and fuel costs. So my observation was that while your monthly Petco cost in dollar terms that you are reporting is increasing and of course on an average basis it is certainly going up in Q3 and there has been a rupee depreciation as well. And despite that our cost per kcal or like you know the fuel cost that we give has fallen down sequentially. So what different are we doing to get a lower cost?
Unidentified Participant
No Naveen, actually it is because of the mix because Indian fuel consumption has increased. The
Ajay Kumar Saraogi
Central plant is actually basically more on. Closer to the mines it is more on Indian coal which is cheaper. It is the Pet coke is mainly used in the northern plants and in south plant but in the central plants it is a reverse situation where we are using the petcoke as only as a blending fuel, you know, about 20% and the AFR is also higher. So these are the two factors.
Navin Sahadev
So as we ramp up the new kiln which is again in central India, we should get further benefit of domestic coal or we should stay insulated that much more.
Ajay Kumar Saraogi
Yes, we have a linkage domestic fuel and even the as of now even the open markets domestic fuel is cheaper. So being see this is the advantage to be closer to the coal sources. So we are closer to the coal field. So we can we have an access to cheaper fuel.
Parvez Qazi
Understood.
Navin Sahadev
And
Parvez Qazi
Just again
Navin Sahadev
One broader question if I may.
Ajay Kumar Saraogi
So in this quarter, as you rightly. Pointed, non trade prices went down. And I can see of course your mix also changed in favor of non trade. And so my question was post GST rate cut. I thought the expectation was of seeing benefits towards premiumization so to say. But that seems to have been on the other side. The same
Navin Sahadev
Negative prices in non trade are falling much more and the share of trade is also falling. So how should one look at it from that point of view?
Ajay Kumar Saraogi
Oh no, see. Yes, the non trade, see incremental volume has gone into non trade. But you know our premium brand volumes in absolute number the trade numbers have increased. They have not gone down. And the premium product percentage has also increased quarter on quarter. If we see from July, September quarter it was 14.9% against which we have done 17.3% of premium products in this quarter. And so there is an increase even if we say July September is a lean period. If we take it year on year it was 15.8 against 15.8.
We are 17.3% of premium products.
Unidentified Participant
Understood. My only if I may say fear was that as we ramp up our Perna line two at least in the first year our exposure to non trade then would be much higher than what we saw in Q3, Q4, Q3 or you think it can, it can come
Ajay Kumar Saraogi
On. Not as a percentage, it will not be. This is, this has been. So I don’t think as a percentage it will increase further.
Navin Sahadev
Understood. That’s helpful sir. Thank you so much.
Operator
Thank you. The next question is from the line of Sanjeev Singh from Murtila. Lose one. Please go ahead.
Sanjeev Singh
Thank you for the opportunity. Sir, just one clarification. Saying 20 million ton of volume that implies only 1 2% kind of a growth on a year on year basis. So do you. So does it mean that given the clinker utilization rate of 97 in 3Q probably volume growth from existing plants could be flat and the incremental volume could be from the pina plant. Because at the same time you mentioned that industry growth could be at 6 7%. And given JK Cement’s historical growth rates we would assume that the volumes could be higher than what the industry is doing.
So just needed one clarification on this and secondly if you can put out some number on what has been the pricing improvement in January so far both in trade as well as trade segment.
Ajay Kumar Saraogi
So on the clinker. Yes, definitely see the clinker. The major volumes is going to come from central India and in the and north it will be at the rate with the market. We’re not going to lose any market share because again some of the there are twin markets and all that can be serviced accordingly. So we’re not going to lose any market share either in the north or gain. And we will definitely be growing more overall more than the market in this quarter also.
Sanjeev Singh
And any number to the pricing improvement which we have seen in January.
Ajay Kumar Saraogi
See what we are seeing from latter part of last week of a trend which we have seen now is on the non trade pricing definitely about you know, know it in terms of 15 to 20 rupees improvement in the non trade pricing and still and in trade definitely that has helped one to. I mean the price it has released the pressure on trade. We have really not seen any, you know signs any increase in trade. But definitely since the pressure is off it will help in some in restructuring our discounts and further and increase some of trade prices wherever possible.
Sanjeev Singh
Okay sir, thanks a lot.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants we would request you to please limit your questions to two per participant. The next question is from the line of Nitesh Shah from Investec. Please go ahead.
Ritesh Shah
Hi sir, thanks for the opportunity. Sir, couple of questions. Sir, first is would it be possible for you to dissect the fuel mix given you hinted on the linkage. So what is Petco? How much is linkage? How much is non linkage and any indication of how that will play out in the next quarter?
Unidentified Participant
No, see presently the Petco consumption was around 60% and balance is the Indian coal and AFR.
Ritesh Shah
Okay and sir, how much will be linkage over here?
Ajay Kumar Saraogi
So in case of I think about of the Indian coal around 70% is linkage fuel and 30% is opal market.
Ritesh Shah
This helps sir. Thank you for this. Sir. My second question is on exceptional items how should we read this number of 46 crores? Is there a retrospective element over here? How should we understand it and why is it under exceptional?
Ajay Kumar Saraogi
See this is. This is as an exception item. This was A this is under the new labor code which has been effective from 21st of November. So on the new labor code where they have spelled out the new wage and the definition of how the gratuity and the leave and catchment has to be calculated where they have said, you know the gratuity of the total payment 50% has to be the basic amount and the leave and cash went. So there is not. So we have broadly you know reviewed that and we are still doing the fine working but we have tried we see that this could be our, you know actually this could be the liability on account of this revision though we are still discussing and you know freezing the numbers.
But this is a number, this is how we have arrived at the number.
Ritesh Shah
Sure sir. Last two questions are Capex number if you could highlight for full year 26, 27, 28 and if you could just dissect Jaisalmer out of the CAPEX number annual CAPEX numbers.
Unidentified Participant
So Capex number in this year should be 2500 to 2800 and out of that jcell where would be 600 cap crores.
Ajay Kumar Saraogi
So actually as you see whatever number we had given without Jaisalmer which was around 2000 for FY26 that remains as it is the incremental Capex on in this year will be on Jaisalmer which is around you know 600 crores and another 5060 crores on the Nadwara world putting plant. Otherwise we are broadly you know in line what our earlier plan which we had given of the Capex
Unidentified Participant
And next year Capex would be around 3500 crores which would include around 3000 crores of the capex on the 7 billion ton expansion.
Ritesh Shah
And sir, 2828
Unidentified Participant
Will be the spillover Capex in the range of thousand twelve hundred crores.
Ritesh Shah
Okay, this is helpful answer. Any update on Toshali Limestone? I think we were engaging with the government. Any, any update over there and no,
Ajay Kumar Saraogi
It takes time. We are still in dialogue with the government. They are still, they are considering our request and so when any plans on that what we need to do as a next step will depend when they really you know we have the order, we have everything in hand. See 1 Is there a positive indication that is definitely there. But till we you know when we are working with the government unless you have the order and everything, the agreements in place for a long term supply with a few fixed rate we, I mean we cannot but, but still there is no negative the discussions and the dialogues all in the positive manner.
Ritesh Shah
Sure sir, if I can squeeze One question if you allow.
Ajay Kumar Saraogi
Yeah, please.
Ritesh Shah
Yeah. Sir, can you give some indication on the trade and non trade price cap across regions?
Ajay Kumar Saraogi
So now with the improvement I think the gap would have come down in normal 20 to 30 rupees maybe in certain pockets still remaining at still there at 40. But it has come down when it had gone up to minus 60 rupees. 60, 70 rupees. So that was the position.
Ritesh Shah
Sure. Sir, this is very helpful. Thank you so much. All the very best.
Operator
Thank you. The next question is from the line of Rajesh Ravi from HDFC Security.
Rajesh Ravi
Yeah. Hi sir, good evening. My first question pertains to your cost saving project. Could you quantify how much we have achieved so far in FY FY 26. And what is the guidance for full year and next year?
Ajay Kumar Saraogi
So as we said, you know we had a plan of about 150 to 200 rupees. Anything in ranging FY25. We had already done a particular journey of 5060 rupees. We had a plan. I think exit of March we should be at around, you know most everything done at around 125 rupees. Maybe we have another 25 to 40 rupees for next fiscal.
Rajesh Ravi
Okay, so the 150 you already done. 100 rupees or
Ajay Kumar Saraogi
125 should be the exit of March 26th.
Rajesh Ravi
Sorry. So sorry. Get. I didn’t get you. FY25. You received 50 to 60 rupees. And this you’re saying another 25 rupees. FY26.
Ajay Kumar Saraogi
Another 50, 60 rupees this year. Which means the exit of FY26 is around 120 125. Okay.
Rajesh Ravi
Okay, understood. And the rest for an exponential you are looking at.
Ajay Kumar Saraogi
Okay.
Rajesh Ravi
And second on the this labor cost. Provision, whatever you factored in as an. Exceptional, what would be the recurring impact on a quarterly basis here on.
Ajay Kumar Saraogi
We are just working out on that. Not, not much clarity because a. There, there would be some, you know, reclass. We would, we should. We would be. The present other practice was you know, in the industry was on a CTC basis. So the CGC used to be very flexible. So now we need to restructure the salary and then try to work out what would be the impact.
Kunal Shah
Having said
Ajay Kumar Saraogi
So there could be some impact when we have no exact numbers but not something substantial. Maybe monthly 3 to 4 crores at the most. This is what we.
Rajesh Ravi
So this quarter everything has been in the exceptional. There is nothing which has been built. Up in the employee cost
Ajay Kumar Saraogi
Also. So we have not put in any none of the labor code liability has been included part as part of salary and wages.
Rajesh Ravi
Understood.
Ajay Kumar Saraogi
And just two clarification.
Rajesh Ravi
Yeah,
Ajay Kumar Saraogi
Yeah.
Rajesh Ravi
Two clarifications. Incentives last quarter for Q. Last call you had mentioned for Q2 was 70 crore which you said is 86 crore. And now Q3 is 60 crores. So Q2 was 86 crore or 70 crores.
Unidentified Participant
No, 86 crores was the same quarter last year.
Rajesh Ravi
Oh I was asking for
Unidentified Participant
It was not QQ.
Rajesh Ravi
So Q1Q was. What is the number in Q2? 70 crore. And this quarter it is 60 crore. Is this understanding right?
Unidentified Participant
Yeah.
Rajesh Ravi
Okay. And the 60 crore run rate will continue. But exit FY27 you are looking at going back to around 75 crore run rate.
Ajay Kumar Saraogi
Yeah. At the end. So because you know you’ll have more incentives on new players. But on per ton it will be lower the absolute amount. We expect that by last quarter it could be 75 crores. And on the
Rajesh Ravi
Pricing you mentioned non trade 15 to 20 rupees improvement has happened so far in Jan and trade. What was the number you mentioned?
Ajay Kumar Saraogi
I said there’s no number on trade. It has remove the pressure on pricing too. Okay. And it may help us in certain discounts. We have to see how the marketing gets back to us. And what is the competition doing.
Rajesh Ravi
Understood. So basis that only trade prices may go up if nonsense prices remain strong.
Ajay Kumar Saraogi
Yes, yes.
Rajesh Ravi
Understood. That’s great. And all the best. Thank you sir.
Operator
Thank you. Ladies and gentlemen, a final reminder for questions and no further reminders will be announced. Anyone who wishes to ask a question may press star and one. Now the next question is from the line of Karves Kazi from Nuvama group. Please go ahead.
Parvez Qazi
Hi, good afternoon sir. And thanks for taking my question. So two questions from my side. What was the real share this quarter? And second, any comments on the paint business will be helpful. Thank you.
Unidentified Participant
Rail share was 9% in this quarter. Paint turnover was 103 crores in this quarter. So for the nine months it is 285 crores.
Parvez Qazi
And anything about profitability etc by when can we achieve a break even here.
Ajay Kumar Saraogi
So on the paint what we see that we should end the year at around closer to 385. 390 maybe 400. I’m not too copy, not too confident 400 but definitely between 380 to 390 crores. And this year we should have a lower loss as compared to last year. Because we are seeing the loss to be lower now since we have already worked out we have an Improved gross margin. We have worked out on the product. And next year what we see when we cross the 500 crore number with a higher gross margin that FY27. We should see a breakeven in the paint business.
Operator
Thank you. The next question is from the line of Siddharth M. From Kotak securities. Please go ahead.
Siddharth Malhotra
Hi sir. Thanks for the opportunity.
Vaibhav Agarwal
Just wanted to check. When you say that non trade prices. Are up approximately 15% to 20 rupees per bag. Is it similar across regions or is it largely confined to the north region? When you give this particular comment
Ajay Kumar Saraogi
Across all regions. You must have seen reports. It’s across all regions. Even in south, the central east. Okay,
Siddharth Malhotra
Sir. Okay, sir. Understood. That was all from. Thank you, sir.
Operator
Thank you. The next question is from the line of Shavansha from Dalit Capital. Please go ahead.
Siddharth Malhotra
Hi. Thank you, sir. A couple of questions. So first in terms of the next expansion. So post the Jason mail. We will be going for the Mudapur 5 million ton expansion.
Ajay Kumar Saraogi
See, this is in all probability. I cannot say firmly. This is. We are going through. It depends upon the situation and what the. Finally board approves in all likelihood as a plan. Yes. That it should be there. We are still working out there. So that is the position. I will not. We are not announcing that this is after Jaisalmer. We are taking up Mudaput. This is the most likelihood as here said. And it will depend on situation Internet. Yeah, got
Siddharth Malhotra
It. But. And. And. And then most likely by. By. By end of this year we should be announcing that or it would be in FY27. We will be starting with.
Ajay Kumar Saraogi
I think that announcement will come post commissioning of J. Okay. Okay. Is a big project and you know, it’s a Greenfield large project. But having said so again it’s to be. No if the market is different. It depends on how the market is. What is our balance sheet? If you want to prepone something. But two, three, six months. It all depends on the mark. How you see the market at that point of time. How you see your balance sheet.
Siddharth Malhotra
Okay. Okay. Okay. Because. Because then we need to do. At least. We have to start announcing project simultaneously. Because we need at least 12 million tons. I know that.
Ajay Kumar Saraogi
As I said, once we see. You know you’re confident that. Yes. As we announced Jaisalmer, you know, before commissioning of Panna was only for a reason that we were. The balance sheet was in order. The project was well under control. We were confident that we would commission the project well within time, well within. Well within cost. And. And the. And Our balance sheet was supportive so we took. We announced Panna, a big project before completion of Panna. We announced Jaisalmer before completion of Panna.
Yes, there could be an announcement before completion of Jaisalmer. But we have to wait and watch. See that everything is in our control. Then make a call.
Operator
Thank you. The next question is from the line of Melinda Ganwar from BOB Capital Markets. Please go ahead.
Unidentified Participant
Thank you for this opportunity. Sir, may I request you if you can share the clinker production number for the quarter.
Unidentified Participant
Yeah, the clinker production for this quarter is 3.6 million.
Unidentified Participant
3.6 million.
Unidentified Participant
Yeah.
Unidentified Participant
Okay. And sir, if you can just give us some. Some idea on the fact that what would be the cost differential for North Visa v the Central and East. Just send you know a ballpark number maybe not so.
Ajay Kumar Saraogi
Oh see broadly you know. Actually it is more or less you know the cost factors there could be you know sometimes a variation of about 100. Because where in the. In the central we get advantage of low fuel in the north we discomfort to be we can use more afr. And so it is different but not much of a difference.
Unidentified Participant
Okay. Okay. Fair. Thank you.
Operator
Thank you. The next question is from the line of Pushkar Jen from the Milli Capital. Please go ahead.
Ajay Kumar Saraogi
My question is already answered. Thanks a lot.
Operator
Thank you. The next question is from the line of Harsh Mittal from MK Global. Please go ahead.
Navin Sahadev
Good evening sir. Thank you for the opportunity. So my first question is that what is the fuel consumption cost?
Unidentified Participant
Fuel consumption. The average rate. You. You mean for the fuel or. Yes.
Navin Sahadev
Yes.
Unidentified Participant
It’s. It’s around 7,900 rupees
Navin Sahadev
In terms of
Unidentified Participant
1 rupee 50.
Navin Sahadev
Okay. So this is flat compared to the quarterly average.
Unidentified Participant
Quarterly average mean
Navin Sahadev
What? So I’m asking for this what current. Current.
Unidentified Participant
Current means
Ajay Kumar Saraogi
For January.
Navin Sahadev
Yes.
Ajay Kumar Saraogi
No, see. Currently. See Petco prices are still a bit higher than what we are holding. But since we have an inventory it will not have much impact. But yes, all the new shipments would be higher because mainly a. Because there have been a increase in the fuel in petco. 7 $8 and did rupee devaluation.
Navin Sahadev
So my second question is that what would be the exit utilizing for the panna line 2 for the December quarter? Exit.
Ajay Kumar Saraogi
Exit utilization.
Navin Sahadev
Yeah.
Ajay Kumar Saraogi
So exit utilization. The clinker. Again it depends. Since we will not be able to fully utilize a plant. So Clinker we would be definitely in a position to optimize the kill by end of the quarter two. As far as the. You know all the grinding capacities are concerned. It is a seasonal. It’s very difficult when all the, you know, output warranties would be completed. But you utilization very difficult to say what would be the utilization? Exit utilization. It’s very difficult to say what would be that number.
Navin Sahadev
Okay, the last question. Can we assume the commissioning of the grinding unit at Rajasthan and Punjab to be commissioned simultaneously with the project. Or. Will there be a lag?
Ajay Kumar Saraogi
One grinding unit should definitely be there at the split location. If not the both. But let us see. But still, since there would be a grinding at the integrated plant, even if there is a delay, we will be able to manage.
Navin Sahadev
Sure, sir. This is very nice. Thank you. These were my questions.
Operator
Thank you. Ladies and gentlemen, due to time constraints that would be the last question for today which is from the line of Pad Bhavsar from Envestech. Please go ahead.
Navin Sahadev
Yeah. Thank you. All my questions have been answered.
Operator
Thank you. Ladies and gentlemen. As this was the last question for today I now hand the conference over to Mr. Vaibhar Agarwal for closing comments.
Vaibhav Agarwal
Thank you very much. Thank you.
Ajay Kumar Saraogi
Yeah. Thank you everyone for joining the call. Thank you.
Operator
Thank you ladies and gentlemen. On behalf of Philip Capital India Private Limited, thank you for joining us. And you may now disconnect your lines.