JK Lakshmi Cement Ltd (NSE: JKLAKSHMI) Q3 2026 Earnings Call dated Feb. 04, 2026
Corporate Participants:
Vaibhav Agarwal — Investor Relations
Ajay Saraogi
Analysts:
Unidentified Participant
Pathanjali Srinivasan — Analyst
Sanjay Singh — Analyst
Harsh Mittal — Analyst
Harshal Milan Mehta — Analyst
Amit Murarka — Analyst
Rajesh Ravi — Analyst
Pushkar Jain — Analyst
Tushar Chowdhury — Analyst
Tushar Chowdhury — Analyst
Bavstar — Analyst
Presentation:
operator
Ladies and gentlemen, thank you for your patience. The conference of JK Lakshmi Cement Limited will begin shortly. Please stay connected and do not disconnect. Ladies and gentlemen, thank you for your patience. The conference call of J.K. lakshmi Cement Ltd. Will begin shortly. Please stay connected and do not disconnect. Thank you. Ladies and gentlemen, good day and welcome to the earnings conference call of JK Lakshmi Cement Limited Water and nine months ended 31 December 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. Vaibhav Agarwal from Philip Capital India Private Limited for opening remarks. Thank you. And over to you Vaibhav.
Vaibhav Agarwal — Investor Relations
Thank you Ryan. Good evening everyone. On behalf of Philip Capital India Private Limited we welcome you to the Q3 and 9 months FY26 call of JK Lakshman Cement Limited. On the call we have with us Mr. Arun Marsupla, the Citizen Director and Mr. Sudhir Bitkar, Executive Director, Corporate affairs and CFO at J Collection Cement. I would like to mention on behalf of J Collection Cement Ltd. And its management that certain statements that may made or discussed on this conference call may be forward looking statements related to future developments and such statements may be based on current management expectations. These statements are subject to a number of risks, uncertainties and other and other important factors which may cause the actual developments and results to differ materially from the statements made.
J.K. lakshman Cement Ltd. And the management of the company assumes no obligation to publicly update or alter these forward looking statements whether as a result of new information or future events or otherwise. Also, JK Lakshman Cement Limited has uploaded a copy of the Q3FY26 results presentation on the company website which participants can download. I will now hand over the call to the management of J.K. lakshman for the opening remarks which will be followed by interactive Q1. Thank you and all the. Sir.
Ajay Saraogi
Yeah, yeah. Thank you so much. Good afternoon to all of you and welcome to this call of JK Lakshmi Simon quarter three and nine months of financial year 2025-26. We have already uploaded the presentations and we can right away start with questions and answers.
operator
Thank you ladies and gentlemen. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two 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. We take the first question from the line of Patanjali Srinivasan from Sundara Mutual fund. Please go ahead.
Ajay Saraogi
Thank you for the opportunity.
operator
Patanjali. I’m sorry to interrupt you there but your audio is not coming through clearly. Could you please use your handset?
Ajay Saraogi
Yeah, I hope it’s better now. The call will be recorded. Hello? Is no longer being recorded. Hello.
operator
Please go ahead.
Ajay Saraogi
Yeah. So I believe our share of trade. Sales has fallen quite a bit on a year on year basis. Could you explain a bit about this in terms of why this has happened?
Ajay Saraogi
I think not. Not very clear. Sorry. I’m extremely sorry but I couldn’t really hear that.
Ajay Saraogi
Am I audible now? Can you hear me now?
Ajay Saraogi
It’s little better. Not so great. But yeah, we can manage.
Ajay Saraogi
Okay.
Ajay Saraogi
So your trade sales in your overall. Volume has declined quite a bit here on your basis. So can you tell us like what has happened here?
Ajay Saraogi
Not clear. Sorry sir. Sorry.
operator
Mr. Srinivasan, if you could please use your handset and ask a question.
Ajay Saraogi
Yeah, just a second. Your trade share has fallen quite a bit on a quarter on quarter basis in your overall volume trade cement sales. So can you explain why this has happened?
Ajay Saraogi
Yeah, yeah. Good, good. Now, now it’s clear. So you’re asking about trade sales drop, right? Yeah. So that has happened in quarter three of this year. And this is precisely because of two things. One, of course I think our volume in Gujarat has gone up. Whatever we sell in Gujarat in quarter three, we have sold more than that. This is one second. That is also coming from the fact that we commissioned our Surat grinding station in the month of September, the 22nd of September 2025. So that volume was also available with us. And there was a good demand in Gujarat beyond the 15th of November.
So our volume went up in Gujarat which is predominantly a non trade market. And that is why our trade share has gone down by about, you know, 4%. Right? Yes, 53 to 59%. 49. Sorry. So this is what the reason is.
Pathanjali Srinivasan — Analyst
And why would our trade volumes on a year on year basis decline? I get the fact that your non trade has gone up because you got more business. Why is there a degrowth in volume for trade year on year?
Ajay Saraogi
So trade Also if you really see post GST reduction on 22 September, there was some confusion in the market with respect to, you know, passing on prices to customers and things like that. In fact, you know, prices went down quite a bit post GST reduction. Right. So there was a demand in non trade segment during that point in time. Also the fact is, you know, during this Diwali season and extended reins also during this time, laborers have not come back to their respective sides. I’ll just, you know, take you back little bit because there was also elections in Bihar during that time.
So laborers went back to their respective states and they came back to the site only after this, you know, election of VR. So scarcity of levers and hence there was more demand in sites where ready mix, you know, on site ready mix plants were there and hence more of a, you know, demand in non trade segment. So that is what the reason is.
Pathanjali Srinivasan — Analyst
So can we confirm that this situation was a temporary thing and in the current quarter our share of trade should be like back to a fairly decent level?
Ajay Saraogi
Yes. Yeah, yeah. I think, you know, in the right, in the month of December and January only I think we have gone back even little better than what we have done before. So not any. So that was a very temporary thing. Extremely temporary. Mr. Srinivasan, you need to understand we commissioned our plant in the month of September. And also we had to really kind of, you know, test that, you know, capability of plant. We need to ramp up that plant. I think that was also one of our priorities during that time. Right.
Pathanjali Srinivasan — Analyst
My concern is not about the non trade volumes growing. My concern is about trade volumes, why it did not grow. But I got the answer from you. Thank you so much.
Ajay Saraogi
We have come back. We have come back very strongly in December and even in January. Got it.
Pathanjali Srinivasan — Analyst
Thank you.
Ajay Saraogi
Thank you.
operator
Thank you. Ladies and gentlemen. If you wish to ask a question, please press star and one. We take. The next question from the line of Sanjeev Singh from Motilal OSWAL Financial Services Ltd. Please go ahead.
Sanjay Singh — Analyst
Yeah, thank you for the opportunity, sir. So can you throw some light on. The pricing scenario in your respective markets? North Gujarat as well as east region are during 3Q because realization seems to be down around 10% on a sequential basis. And also what was the gap between trade and non trade prices in the markets where you operate?
Ajay Saraogi
So typically if you look at our footprint which is there in part of western market, which is Gujarat heavy on institutional sales, we go to Mumbai which is also little heavy on institutional sales. And part of, you know, North, I would say Rajasthan, Haryana and west part of ub. Right. So if you really look at, you know, distribution of our sales then because I told you know, the earlier questions I was replying to that post GSC reduction there was some sluggishness in the market and hence effort was there to really at least, you know, sell some volume from this newly installed, you know, capacity which was Surat.
And also in other market also there was some sluggishness in demand in trade segment and that is, you know, kind of, you know, common with the industry. If you really look at, I think that cut across, you know, majority of the players who have reported their, you know, volume, their volume has gone down percentage wise in trade. In majority of the cases not all. Right. And that has happened with us also in our case more predominant because our dependence on Gujarat is much higher than other players. So that is what has, you know, the case has been for us.
Sanjay Singh — Analyst
So secondly sir, how is the pricing scenario as of now in the month of Jan and plus if we look at your employee expense then sequentially that has gone down from 130 crore to around 160 crore. So what has been the reason for that?
Ajay Saraogi
So I’ll ask you know, second question first. Right. So as I said before also that we have been optimizing or improving productivity at our different locations. So first phase we had done last year, second phase we had started a couple of months back, three, four months back. And in fact going forward also I think we do have plan to improve our productivity. One of course through improved volume and second also per person, you know, productivity in terms of, you know, cement revenue or pertinent cement revenue you get. Right. So that effort even is still continuing.
So that has benefited us in terms of reduction in employee cost. So one second you asked about pricing scenario almost in all markets, most I would say December onward, maybe you know, latter part of December non trade prices have gone up everywhere. Trade prices have not gone up that much. But I see since you know, demand has been very good in the month of December and that is still continuing in January and February also is a similar situation. I see that, you know, prices in trade also will go up from two counts. One, improved in demand, improved demand situation.
And second also fuel prices are going up so that also I think will have to recover from the market. So from these two counts, trade prices also we expect that will go up. And even non trade also the gap which is still very high in different markets that will also get shortened going forward. So price wise I see good improvement in non trade segment in the last one and a half months. Going forward I see improvement happening in trade as well along with non trade. So pricing wise I think see things are improving for sure.
Sanjay Singh — Analyst
So should we assume that employee cost will remain at 115,120crore kind of a range going forward?
Ajay Saraogi
I think our endeavor is. I told you that.
operator
Ladies and gentlemen we have lost the line of the management. Please stay connected while I reconnect the management. Thank you. Sa. Ladies and gentlemen, we have the management reconnected. Sanjeev, if you could please repeat your question for the management. Thank you.
Sanjay Singh — Analyst
I was asking about the employee cost. I think he answered it.
Ajay Saraogi
So you asked two questions. One on pricing which I said non trade has gone up. Even trade also expected to go second on employee cost. So we had taken some previous projects. In fact you know our endeavor is to further improve the productivity which we are working on. Yeah. So these are the two things. Cg.
Sanjay Singh — Analyst
Yes. Thank you sir.
operator
Thank you. Please press star and one to ask a question. We take the next question from the line of Harsh Mittal from MK Global Financial Services. Please go ahead.
Harsh Mittal — Analyst
Good evening sir. Thank you for the opportunity. I have few questions. First one being given that continue with the previous participant question. So do you feel that the realization could improve in the similar quantum what we lost in phase three?
Ajay Saraogi
Yeah, yeah I think I. As I said the prices are improving and volume also is improving. So we’ll get some, you know leverage as well. So. Yes, I definitely see that.
Harsh Mittal — Analyst
And so what was the clinker sales for this quarter? If you can just.
Ajay Saraogi
1 lakh 51,000 ton and the clean car utilization level. So we had 90. 90%.
Harsh Mittal — Analyst
The last question, what is the capex that we have already incurred for the Durgal line two and have we ordered the clinker units for Durg line 2?
Ajay Saraogi
Basically. We have not incurred much of the capex other than what we had mentioned in the last call. So in the first nine months of the current financial year we have incurred about. 250. 260 crores we have incurred. Balance will happen in the. We have talked of a figure of about close to 400 in the current financial year of the dirt project. So balance will happen in the current quarter. So we’ll be spending 400 crores out of the 3,000 crores land in this year.
Harsh Mittal — Analyst
Yeah, yeah. Only 400 current financial year. You’re right.
Harsh Mittal — Analyst
Right. And. And we are aiming for everything commissioning including the clinker and grand by March 27th. Am I right?
Ajay Saraogi
Yeah, yeah. Entire project Will get completed by March. 28Th including all the spread locations.
Harsh Mittal — Analyst
Okay. And these were my questions. I’ll join that. Thank you.
Ajay Saraogi
Yeah, thank you.
operator
Thank you. Press star and one to ask a question we take the next question from the line of Herschel Mehta from amsec. Please go ahead.
Harshal Milan Mehta — Analyst
Hi sir, thank you for the opportunity. Three questions from mine. Firstly in terms of realizing the sharpening that so this quarter like we have seen a very sharp decline of 9% on QoQ basis. Could you please help understand the drivers behind the same. And additionally if we see over the last few quarters volatility in terms of realizations and in the beta pattern continues to remain much higher versus fears. So any color on the structural or operation factors behind this volatility will be helpful. Also in terms of price, if you can just you know throw some number on how Our spot prices vs Q3 average for the trade and non trade segment in our core operating margin that was one secondly on the project updates, so two clarifications.
Firstly we already understood that it was planned to be commissioned in two phases 2.2 by March 27 and 2.4 by March 28. So does this freezing remain intact? And secondly on the overall Bureau Capex 3000 crore is a number we calculated earlier that still remains. That was a good clarification. And lastly in terms of you can just share some data on regional mix for this quarter CC ratio and the clinker fields in 2Q and 3QFY25. So that would be helpful.
Ajay Saraogi
All right, so I’ll answer first part of it on realization part of it. So I explained that so drivers were one non trade prices went down drastically post GST reduction. One second in our case because you also mentioned about peers so our dependence on Gujarat is a little higher. And since non trade prices went down everywhere including Gujarat and our trade sales was also not that great. I think 49% that is what our trade is.
Harshal Milan Mehta — Analyst
Right.
Ajay Saraogi
So these are the drivers why realization has gone down. This is. One second I think you also mentioned about, you know on this realization quarter on quarter basis. So I think one thing we need to understand our footprint. Our footprint. And since I think we are limited to you know some geographies like in north we are only in part in north. So north limited to only Rajasthan, Haryana and West UV we don’t go anywhere in west we are only limited to Gujarat and part of Mumbai. We don’t go anywhere else. In east we are only limited to Chattisgarh and maybe little bit of neighboring states.
Harshal Milan Mehta — Analyst
Right.
Ajay Saraogi
So our Anything kind of, you know, happens in this market either upward or downward that you know, impacts us. Right. And this is little different than other players because they have little, you know, spread footprint in different market. So that gets kind of assimilated and that gets averaged out. But in our case as I mentioned that let’s say take last quarter, last quarter our sales in west part of India which is, you know predominantly Gujarat for us was higher than previous quarter one and second non trade prices went down. So we were impacted much more than what others would have been.
Right. And if you see the last quarter, if you refer go back to July to September, right. That you know, during that period Gujarat did better and in fact all markets were better. You know, wherever we were present. In our case I think Chhattisgarh did very well. You know Rajasthan, Ariana was very good and Gujarat also kind of performed very well. So I think everything ticked together and that is why you see a good performance in quarter two and not so great. In terms of realization though if you really look at the bottom line, whatever the estimation was, I think we are close to that.
I think there is no miss on that count. Right. But yes, because of the footprint which we have in our case I think that definitely has bearing on us. So this is what on realization. Second, I think pricing, I told you I see prices are going to do better. One because of improved demand. Second also, I think cost is going up. So prices definitely will go up going forward. Non trade prices have gone up in majority of the market. Even trade also is likely to follow. That is what my estimation. So this is what you asked.
I think your question was quite overloaded. You asked about you know, clinker factor which I think I’ll give you that is 1.49, 1.44. You asked about capex of 3000 crore. So that remains. This is what I remember. If anything is missing from my end. Just let me know.
Vaibhav Agarwal — Investor Relations
Yes, multiple things like first on pricing, if you can just any particular number in terms of trade and mounted how you know we are at spot versus Q3 average, that was one thing. Secondly, on project updates I was just asking 2.2 million by March 27 and 2.4 by March 20. That still remains intact. That was just a clarification. And lastly I was asking on the regional mix if you can share for this quarter and clinker sales for the last year like QQFY25 and two QFY26.
Ajay Saraogi
Yeah, yeah. So last year it was 7, 7.23 lakhs tonight. Right. And this year we have already told you last quarter it was 1.51 and for the whole the nine months it’s 5.34 on you know this pricing and this thing, all these things. This is not handy with us. We can give it later.
Harshal Milan Mehta — Analyst
Sure. Thank you. And all the best.
Ajay Saraogi
Thank you. Thank you so much.
operator
Thank you. Please press star and one to ask a question. We take the next question from the line of Amit Muraka from Access Capital. Please go ahead.
Amit Murarka — Analyst
Thanks for the opportunity. So I think a lot of questions. Have already been asked about your pricing decline. But honestly I mean it’s still a little confusing still because while I see that your share of non trade has dropped by what 4 percentage points from 53 to 49 like even looks like even the overall portfolio seems to have deteriorated on pricing including trade. So but generally north I think the trade pricing was pretty steady. So like is it like your non trade price decline kind of influences even your trade pricing in the market? Even let’s say the other category players, let’s say the likes of Ultradac and all essentially does your gap increase within trade also versus the higher price players in the market when non trade goes down? Because essentially such a sharp decline I think is not.
Was not there in the market essentially in any of the markets. So it’s still a bit confusing over there why it has gone down so much.
Ajay Saraogi
So Mr. Moralka. Yes. Repeat once again. So trade prices almost were intact. The gap which you are having with the leading players that remains that has not widened. I told you two reasons. Precisely two reasons. And we do have that detailed, you know, reconciliation also with us. One is of course I think Surat. We started on the 22nd of September and we had to really amp it up. And Surat expansion typically this caters to market of Gujarat and Mumbai which is heavy on non trade. This is one. So increase volume in non trade and decrease price in non trade.
I think that has impacted the most that non trade is not limited. Reduction is not limited to this market mounted prices went down in other markets as well. But the most impact on us was from Gujarat state. Right. So this is what you know why this has gone down. One. This is what I think you asked. Right. Anything else?
Amit Murarka — Analyst
Yeah, no. So I mean if I simply put if I think of it that trade was steady which is let’s say 50% of your volume, 9% overall realization decline would imply about a 18% fall in non trade pricing. Honestly. So which, which, which I don’t think was the case in the market If.
Ajay Saraogi
I gave you the kind of you know, price drop and in fact you know when I was doing this you know road show in Mumbai during that quarter I did mention to some of you, I think I don’t know who all are there in the call that you know what kind of price drop we see in non trade. Right. So non trade, particularly in western market non trade prices were not that great. And in fact you know post GSE reduction since demand was sluggish non trade prices went down in other markets also. For instance, you know let’s say we have a grinding station in Cuttack.
Orisha Orissa was not that great. You know, non trade price wise. Right. Even Chhattisgarh I think our non trade presence is not that much. There also prices went down drastically. Gap increase. Right. So if you put things together I am just giving you the major impact which which is having on us. Right. So I think that has impacted us. That is what I am trying to explain to you.
Amit Murarka — Analyst
Okay. Okay, sure. Could you also share the non cement revenue in the quarter?
Ajay Saraogi
Sorry?
Amit Murarka — Analyst
The non cement business revenue in the quarter.
Ajay Saraogi
Yeah, I’ll tell you. So it’s a 140147 crore.
Amit Murarka — Analyst
And how much was RMC in that?
Ajay Saraogi
RMC was 67 crore.
Amit Murarka — Analyst
Okay. And also AC blocks.
Ajay Saraogi
AC 56.
Amit Murarka — Analyst
Got it. And the EBITDA margin would be roughly how much in this for 4%. Sure. And lastly the capex number for this year if I Understood right user 260 has been spent. Another 400 will happen. So is what 650 odd crores capex for FY26 then?
Vaibhav Agarwal — Investor Relations
No, it is about around that. You are right.
Amit Murarka — Analyst
Total capex 650 odd. Yes. And the next year would be how much?
Vaibhav Agarwal — Investor Relations
Next year we are targeting anywhere between 16 to 1700 crores.
Amit Murarka — Analyst
Sure. Okay. And then balance will be in 28.
Ajay Saraogi
Then you are right.
Amit Murarka — Analyst
Okay. Okay. Thank you. That’s all from my side.
operator
Thank you. Please press star and one to ask a question. We take the next question from the line of Rajesh Ravi from HDFC Security. Please go ahead.
Rajesh Ravi — Analyst
Hi sir. Good evening. Am I audible?
Ajay Saraogi
Yeah, yeah, very much. Good evening Ravi.
Rajesh Ravi — Analyst
Yeah good evening sir. Yeah. Hi sir. You shared the operating numbers and you know just wanted to understand. CEO non trade mix did increase, you know quarter on quarter. And you also mentioned that there was a sharper drop in non trade broadly. Could you suggest what would be the fall? If trade prices would have declined on a like to like basis by 2%. How much would have been the drop in your non trade Realizations broadly.
Ajay Saraogi
I think that varies, you know, broadly.
Rajesh Ravi — Analyst
On an average. On an average, 5%, 10%. Just wanted to understand because trade, we understand it would have been dropped by you know, 2 to 3% at max, you know, seeing results of various peers. So just wanted to understand non trade markets where you operate. What could have been the quantum of correction.
Ajay Saraogi
Correction would be about, you know, more than 10%. Exactly. I’ll tell you. Maybe stay away. Yeah.
Rajesh Ravi — Analyst
And could you also share what was the clinker volumes in Q2 you mentioned? 1.51 lakhs for Q3. For Q2, what was the number?
Ajay Saraogi
I’ll just tell you, Ravi.
Rajesh Ravi — Analyst
Yes. 1.7.
Ajay Saraogi
1.71. Okay. So it dropped quarter on quarter. Okay. Okay. And what explains the sharp decline in your input costs on a Q and Q basis by almost 150 rupees. Given that your fuel cost remains steady at around 1.4, 1.6 and green power mix has also been stable. And then there would not be any, you know, even the clinker production was lower. So you know, there would be more power consumption and whatsoever. So if I look at the total input cost, raw material, power and fuel and chain in stocks, that number has come down by 150 rupees.
And secondly the fall in the freight costs up fall by more than 100 rupees per ton. Is it the on account of higher non trade sales which is mostly X factory. You are right on point, Ravi. Yeah, because this happens only for plant. And if you look at our lead has also gone down. So that area. Yeah, you are right here.
Rajesh Ravi — Analyst
And for the input cost reduction, sir. Yeah, yeah.
Ajay Saraogi
So power cost has Ravi, gone down from 5.5.5 to 5.3 5.52 to 5.37. Right. Per year.
Rajesh Ravi — Analyst
Okay, 5.5 to 5.37. And year on year. How was the number, sir?
Ajay Saraogi
Year on year eight. Just. Just give a sec.
operator
Ladies and gentlemen, we have lost the line of the management. Please stay connected while I reconnect the management. Thank you. Hello, ladies and gentlemen, we have the management line reconnected, sir. Please proceed.
Ajay Saraogi
You were answering the input cost reduction. Hello. Yeah, sorry. I think we have. We are struggling with issues in our office today. Unfortunately. Extremely sorry for that. We are back now. Yeah, so you were explaining the input cost reduction on a sequential basis. Yeah. So 5.5 to 5.37. That is what I told you, Right? Right, sir. Hello? Yeah, yeah, yeah, Go ahead please. Yeah, yeah. So this is a nominal change, right. The power cost can give you the details also we are not handy with that so and second sir if I on the CAPEX project you know you mentioned that you have spent 260 crore and another 400 crore is targeted for Q4 so given that January is already out are you, you know can we assume this 400 crore is on track or are there census of any major and second given that you’re targeting the Klingdorgic spans and Brownfield over next 12 to 13 months so what is the status of the execution on that other has the civil work already started? What is the status on the equipment ordering and you know when would the equipment installation would start because you know that will require some time for that to get executed.
Vaibhav Agarwal — Investor Relations
Yeah we are broadly on track for the capex which we are talked of in this plant about 400 crores in the current quarter and all the equipment, most of the equipment have all been mortar and construction should start as soon as excavation has started and once the equipment land there we start the installation there. This 12 month target for the clinker is good enough for getting the plant operational by March next year. Yeah as of now it’s okay, we’ll be monitoring it. We are monitoring it regularly. We’ll keep you updated on that.
Rajesh Ravi — Analyst
Great, great. Just two more to last more questions. One on the railway siding phase two what is the status and second how is the demand traction so far you are witnessing in the Q4 and January has passed on and we are hearing non trade prices across India have improved. What is the status on trade price improvement and why is that not picking up? Usually non trade price firming up leads to a better trade price.
Vaibhav Agarwal — Investor Relations
Oh yeah as far as the railway siding is concerned is second phase that is expected to be completed by March 28 on and then the other part. Demand and pricing. Yeah how is the demand shaping up in Q3? Are we expecting a similar type of growth in Q4 for the company as well as for the industry? Industry also would have grown 7, 8% in this Q3. Yeah so Q4 being the base little higher. So yeah I think demand momentum is good. What we see definitely I think a double digit growth in quarter four as well. Right. So industry and of course I think we’ll also grow in line with industry volume wise. On pricing with yearly basis if you look at I think our estimation is industry would grow by about 7% or so quarter four is going to be double digit.
This is what we see as of today pricing wise longer prices have gone up in almost all market maybe I think some of the market like orissa and all is still prices have not gone up that much. And in the trade since demand is good and cost also is going up, prices are likely to go up in trade as well. Now you asked why trade prices did not go up. I think trade prices were almost intact, you know that did not go down again that much. So long trade prices which went down drastically in almost all market that is resurrecting.
And then since demand and cost also is now pushing so trade prices also will go. So just last question if I squeeze in, how was the fuel price outlook for Q4? Sir, given that the surge in Petco prices And also for Q1 if there’s some integrative number you’re looking at. Coal prices. Yeah, it’s going up. I think definitely it will go up because whatever, you know we have a stock that we have almost exhausted now new buying is also happening. It will go up by at least. Yeah. Or 1.56 to about 1.60. 1.58 to 1.60.
That is what we see in our case. Okay, okay, great, great. So that’s all from my end. Thank you and all the best. Thank you. Thank you so much.
operator
Thank you. Please press star and one to ask a question. We take the next question from the line of Pushkar Jain from Millie Capital. Please go ahead.
Pushkar Jain — Analyst
Yeah hi sir, I just wanted to ask that our non cement revenue currently operates at like 4% EBITDA margin which is like significantly lower than the core business. So what is the tipping point volume. Where operating leverage kicks in for AEC. Blocks or you know to match the double digit margins of gray cement business or something to that effect. All these businesses you have a very good ROC but EBITDA margin I think we are in almost alignment with the industry.
Ajay Saraogi
Right. So that very you know ready mix, you know is operates at about you know 3 to 5% kind of thing cluster of various business that is a little on higher side and AAC blob is somewhere in between though we are working on you know improving productivity all across and our effort is to really focus much more in in case of readiness on value added concrete in case of AAC blog improving AAC footprint. So we are working on that as well. And now we are also in the process of ramping up our Alvar plant which produces and little bit so perhaps that will take our margin little better than what we have today.
But right now I think since all these you know product lines installations are in the ramping up phase so we see that you know improved margin going Forward but not closer to the cement. I would not say that we’ll reach to the cement level but definitely a higher single digit. That is what our effort is and aim to like reach. Thereby.
Pushkar Jain — Analyst
It will take at least, you know, two years time. At least two years. Yeah. Right. Thank and also thanks a lot. Thank you.
operator
Thank you. A final reminder and no further reminders will be placed to ask questions, please press star and one to ask a question. We take the next question from the line of Tushar Chowdhury from Prabhuda Sri Ladhar Private limited. Please go ahead.
Tushar Chowdhury — Analyst
Yeah, thanks a lot for the chance, sir. Most of my questions have been answered. Just to add one doubt. We have seen 4 percentage point decline. In trade share in this quarter. But our blended share is flattish or constant. What could be the reason for this? So blended is 62% rates over the last quarter. Yeah, it is. It has not fallen at all. Yes sir. So institutional sales is not only about opc, right. Is also about, you know, blended cement. For instance we have started, you know, pushing again. I think it has gone up. Are you there? Hello?
Vaibhav Agarwal — Investor Relations
Yeah, yeah, I’m there sir. Yeah. So institutional sales we are trying to push blended cement that is PPC in lot of you know, ready mix plant. We have supplied now PPC which was not the case before. Right. So non trade, you know, percentage increase necessarily doesn’t mean that you know, OPC goes up. Because our effort is also to work on the carbon footprint and the you know, carbon net zero roadmaps which we have, you know, defined for ourselves. So we are working parallelly on that. Right. So effort is to really push, you know, blended cement in to institutions. Right. And few other.
This thing missed.
Tushar Chowdhury — Analyst
I missed your employee cost. You did you say that employee cost will continue to go down further also.
Vaibhav Agarwal — Investor Relations
Next few quarters go down. I think it will get stabilized. Okay.
Ajay Saraogi
Or yeah. Or maybe I think if you look at you know, some of the sites we are adding. Right. So Surat we have now added. Right. So Surat, I think we need to reinforce, you know the. Then we have, you know some increased footprint in ready mix business. Right. So I think our aim is to really kind of, you know improve productivity rather than, you know, employee cost focusing only on employees. Right.
Tushar Chowdhury — Analyst
And lastly on capex FY26 you said 650 crores out of which 400 we have planned for 3000 crore capex which is ongoing. Am I right or I’m Okay.
Ajay Saraogi
Okay. Thanks a lot sir.
operator
Thank you. We take the next question from the line of Kamlesh Baghmar from Lotus Asset Managers. Please go ahead.
Tushar Chowdhury — Analyst
Just one question. Like so far whatever results have come from the sector, we haven’t seen this fall in realizations, the 10% quarter on quarter, fall in realizations hex of non semantic revenues. So how we define that because it’s a significant fall, 456 rupees quarter on quarter. And I say same market is there for all other peers as well. So why we have seen such a sharp fall and over the quarter there has been. I really don’t understand how the communication has been like so far. In the last phone call we were saying that relations are not going to fall that much.
But what we are seeing is a massive fall of 450 rupees realization. I think I explained you Mr. Kle, whatever I had to say and whatever, you know, something, you know, exceptional happens. I told you our you know, footprint and wherever we are, I think you, I do not know which you know, peer group you are comparing with. I’m not too sure. Maybe I think you have something in your mind. But I told you that our presence in some of the market which is heavy on non trade is high and that increased in last quarter.
And there were reasons also for that. So I explained you that. That is what I think. I have to say nothing more. But like now going forward, are we, have we been able to recoup all the fall in the realizations in this quarter or where do we see our realization in the current quarter? Yeah, so as I said, in all these market we are in the, you know, competitive scenario. We are competing with, you know, other players. The way that market moves will, you know, move in that, you know, alignment only. Right. And I told you the pricing scenario also right? Because for us I think priority in Border 3 was really ramp up, you know, the additional capacity which we had.
And I think that was the right decision, right call. Right. So that is now getting stabilized and things will come to semblance, you know, for sure. That is what see and we have seen that in the last, you know, two months. This is what. But if you can quantify how much what our current realizations are compared to Q3 average or whatever we have reported in this quarter. No, right now we cannot quantify because still two months are left in this quarter. So let’s, you know, wait for some time because there are, you know, volatilities in the market.
So if I tell you something and tomorrow again you’ll ask me question, then you had mentioned that. So I think that is not Fair from my part. So I’ll keep you updated. Only one month is over in this quarter. Things are moving in a positive direction and hopefully I think that direction will not change. This is what my conviction is today. But quantifying things as of today is perhaps I may not be able to. Okay, great. Thanks a lot. Thank you.
operator
Thank you. We take the next question from the line of Bavstar from Investec. Please go ahead.
Bavstar — Analyst
Yeah, so thank you for the opportunity. So I have two questions. One is what was your fuel on consumption? Fuel cost on consumption basis in Q3 it was 720. So how much was it?
Ajay Saraogi
I didn’t. 720. 720 sir. On kcal basis. Yeah. KK. Okay, got it. 1.56. Okay, got it.
Bavstar — Analyst
And answer one more thing. Would it be possible for you to. Quantify the Gujarat sales maybe for the. Q3 quarter as well as base year and previous quarter?
Harshal Milan Mehta — Analyst
Is that. I think this is not handy with me. We can you know talk on this letter. Yeah. Thank you sir.
Vaibhav Agarwal — Investor Relations
Those are my question.
Unidentified Participant
Thank you.
operator
Thank you. We take the next question from the line of Shan Shah from Dalit Capital. Please go ahead.
Unidentified Participant
Yeah, thanks. Finally got the opportunity, sir. Most of the question answers are again coming on the one on the realization part. Sir. Just to get a quantity quantitatively a better understanding. Since first January till now non trade prices for us has gone up by how much? 15, 20 odd rupees. Is that the fair understanding?
Unidentified Participant
So Shravan, this varies in different market and the range I would put is you know, 10 to 15 rupees.
Vaibhav Agarwal — Investor Relations
Okay.
Unidentified Participant
And in terms of trade you said it is it remain at the same level.
Ajay Saraogi
Yeah, yeah.
Unidentified Participant
Trade I think we have been around you know, 54, 55% level. So this is what.
Unidentified Participant
Yeah, but now we are seeing that the trade prices to also go up. So. Yeah, likely to go up. Yeah.
Ajay Saraogi
But.
Unidentified Participant
But given that sir, some of more capacities still to. To come up and everybody will try to push the volumes for, for the march. So don’t even. We are considering that there will be a some rollback in the. In the month of March.
Unidentified Participant
So that is what I was trying to make understand earlier. You know, gentleman, Mr. Kamlesh that you know whatever we say based on what we see today, I think there is lot of volatility and dynamism in the market. And based on that we’ll have to take our call business calls which we keep on taking. So definitive forecasting sitting today I think it becomes very difficult. I agree with you.
Unidentified Participant
Yeah. Because the issue for us why everybody Is trying to harp on the same thing is because to make the number or the estimates as analyst this kind of deviation at 200, 300, 400 rupees makes our our entire estimates and goes on for a toss so will be difficult so it become a from buy to it can become a sell from sell to it can become a buy so that’s why everybody is trying to understand why why such a significant volatility in the prices for us so that’s the only only thing so just more clarification in terms of total capex in nine month at console level is how much sir is it 260 because 250 crore was there in 1H.
Unidentified Participant
Yeah just hold on.
Vaibhav Agarwal — Investor Relations
A console basis including the various projects which we are doing in nine months is about 350. 260 are we are talking of only at for the Italy expansion.
Unidentified Participant
Okay 350 and more another we will be doing a kind of 400 and maybe if you can specify in terms of on a yearly basis the maintenance capex would be how much 200 odd crore for us.
Vaibhav Agarwal — Investor Relations
No no maintenance hours is not 200 it’s totally 50 crores in a year.
Unidentified Participant
Okay okay so for fr 26 would be then 350 plus or 750 to 800 crore would be the total capex at Consolidated.
Vaibhav Agarwal — Investor Relations
That’s why initially yeah it could be ending up maybe anywhere between six will not touch 800 within 650 to 700 at that.
Unidentified Participant
Okay okay understood and then sir, on the conveyor belt is there any. Any update or it it is the same what we said last quarter.
Unidentified Participant
Yeah same status so still is in the final stages.
Unidentified Participant
And then in terms of the further expansion beyond this the Nagor, Kutch and Assam so whatever we say to reach a 30 million ton so that stands remains same and in in terms of the net debt to EBITDA that three three and a half times that we will try to maintain.
Vaibhav Agarwal — Investor Relations
Yeah we would like to not cross that limit.
Unidentified Participant
Okay okay okay okay and sir in terms of the cost reduction so from here on from Q through would be a difficult even for on. On the cost business of. Because when you said the staff cost so that also I want to understand more Was there A from Q2 to Q2 Q3 the number of employees has there a decent decline or was there a salary cut?
Unidentified Participant
So no salary cut productivity improvement and that is what we’ll keep doing even going forward we don’t do salary.
operator
Thank you. We take the next question from the line of Harshal Mittal from MK Global Financial Services. Please go ahead.
Unidentified Participant
Thank you for the follow up question. Just one question. So we have. We are already working at more than 90% utilization. And our dur line 2 as mentioned earlier in the call will not be coming before March of 2027. So what can be a safe assumption for the volume growth for FY27?
Ajay Saraogi
So.
Unidentified Participant
April 27 we have some headroom in Surat. One, we have some headroom in Udur. Second, we do have some headroom in. Even we have some headroom in kak. So I think this is what we see that this will you know keep us on the growth path. Right. So even next year also I think we see a similar kind of work. Of course contingent to the industry growth. Right. But we similar kind of votes even next year. But sir, our think so are we sourcing clinker from outside? Something like that. Because. No. Okay. Okay. Okay. Thank you.
operator
Thank you. Ladies and gentlemen, due to time constraint we take the last two questionnaires in the queue. We take the next question from the line of Rajesh Ravi from HTSC Securities. Please go ahead.
Vaibhav Agarwal — Investor Relations
Yeah.
Unidentified Participant
Hi sir, just wanted to confirm the depreciation impact in this quarter increase. Is it totally on account of Surat?
Ajay Saraogi
Basically.
Unidentified Participant
Basically you’re right.
Vaibhav Agarwal — Investor Relations
Surat got commissioned in the last week of September. So interest and depreciation increase is the capital related cost increase on account of Surat.
Unidentified Participant
This is totally for one quarter impact in depreciation. Because from 78 crore it has gone to 85 crore. There is a sizable 7. 8 crore. If we analyze it then it becomes 36 crore. And while the project cost for this expansion was. If I recollect it was less than 300 crore. It is 1/4 impact in Q December quarter. There’s some.
Vaibhav Agarwal — Investor Relations
I was told that about 6 crores is on account of the sewer and some normal capex that is has happened. And third is on account of the leasehold land depreciation also being charged.
Unidentified Participant
Understood? Understood, sir. And sir, could you give what was the clinker production for FY25 console basis clinical sales. Sorry. Not my bad. Clinical sales total full year 7.23 lakhs. Done. Okay. 7.2. This was for the full year. Okay. Because if I see you told your CC ratio is at 1.44. So are you looking to increase the CC ratio in FY27, 21, 22, 23. You operated at 1.54 and more than that now it has come down to 1.44. So what is the safe Assumption for next year.
Ajay Saraogi
I think our effort is.
Unidentified Participant
To take this blended cement from 62 to about 60, 60, 67%. To that extent our CC ratio will improve. Understood. Right? Yeah. That’s all from my answer. Thank you. All the best.
Ajay Saraogi
Thank you.
Unidentified Participant
Thank you so much.
operator
Thank you. We take the next question from the line of Amit Muraka from Access Capital. Please go ahead.
Unidentified Participant
Yeah. Hi.
Vaibhav Agarwal — Investor Relations
Thanks for the follow up opportunity. So just wanted to clarify on those Capex. I see that your November corporate presentation mentions the capex number as 3300 crore. So can you just clarify is it 3000 crores or 3300 crores?
Unidentified Participant
Yeah, we had included some expenditure on.
Vaibhav Agarwal — Investor Relations
The conveyor belt also therein but Otherwise it is 3000 crores only.
Vaibhav Agarwal — Investor Relations
So the conveyor belt is added to that. But that’s already going on with.
Unidentified Participant
I mean what you mentioned that is not going on.
Vaibhav Agarwal — Investor Relations
That is stalled because of this issue of the land as we have been talking of. So that includes the already expenditure already incurred plus the balance to be incurred which is about 170 odd crores.
Vaibhav Agarwal — Investor Relations
Okay, so if there’s no progress on the conveya bill then it is 3000 crores then.
Vaibhav Agarwal — Investor Relations
Yeah. Yeah.
operator
Okay.
Vaibhav Agarwal — Investor Relations
Okay.
Unidentified Participant
Sure.
Vaibhav Agarwal — Investor Relations
Thank you.
Unidentified Participant
That’s all I wanted to add. Thank you.
Vaibhav Agarwal — Investor Relations
Thank you. Thank you.
operator
Thank you ladies and gentlemen. With that we conclude the question and answer session. I now have the conference over to Mr. Vaibhav Agarwal for his closing comments.
Unidentified Participant
Thank you.
Unidentified Participant
Ryan.
operator
On behalf of Philip Capital India Private Limited we would like to thank the manager collection for the call and also many thanks to the participants joining the call. Thank you very much sir. Ryan, you may not conclude the call. Thank you.
Unidentified Participant
Thank you. Thank you sir.
Vaibhav Agarwal — Investor Relations
Thank you.
operator
Thank you on behalf of Philip Capital India Private Limited. That concludes this conference call. Thank you for joining us. And you may now disconnect your lines.