Capacity Boost! This Cement Player Expands Nagaur Unit by 1 MTPA

JSW Cement has commissioned an additional 1 million tonnes per annum cement grinding unit at Nagaur, Rajasthan, strengthening its newly established North India platform and taking the facility’s total grinding capacity to 3.50 MTPA.

The company disclosed the commissioning on October 6, 2026, under SEBI’s listing regulations. With the new line operational, JSW Cement’s total grinding capacity has risen to 25.1 MTPA from 24.1 MTPA previously. The addition represents a little over a 4 per cent increase in the company’s grinding capacity.

Nagaur is central to JSW Cement’s plan to build a larger presence in North India, where cement demand has been supported by infrastructure activity and government capital expenditure. The company had indicated during its June quarter investor presentation that the 1 MTPA grinding line was expected to be commissioned by September 2026. The latest disclosure confirms that the project has entered operations.

The expansion also takes place as the company ramps up its North India operations. During the June 2026 quarter, Nagaur’s average utilisation was 55 per cent, improving from 37 per cent in April to 68 per cent in June. Management had said that the initial ramp-up was accompanied by higher operating costs, including launch-related marketing expenditure, road-based limestone transportation and start-up inefficiencies.

The additional grinding capacity increases the output base at a time when the company is working to improve the Nagaur plant’s cost structure. JSW Cement had earlier outlined the commissioning of waste heat recovery, an overland belt conveyor and an alternative fuel system at the site. These projects are expected to reduce energy and Logistics costs once fully stabilised, although the company has not quantified the savings in its latest disclosure.

The company’s total clinker manufacturing capacity, including capacity at its joint venture JSW Cement FZC, now stands at 9.74 MTPA. Clinker availability remains a key consideration because grinding capacity expansion requires adequate supply of the intermediate product. JSW Cement has previously stated that it intends to raise clinker capacity to 13.04 MTPA as part of its broader growth plans.

The Nagaur commissioning fits into a larger capacity roadmap under which JSW Cement has outlined plans to expand grinding capacity to about 43.3 MTPA and clinker capacity to about 13 MTPA. Future projects include further additions at Nagaur, Dolvi, Vijayanagar, Punjab and Fujairah. Execution timelines, regulatory clearances and cost control will remain important as the company undertakes this capex programme.

Financially, the expansion comes after a quarter of strong revenue growth but softer operating profitability. Consolidated net sales rose 21.6 per cent year-on-year to Rs 1,896.41 crore in the June 2026 quarter, while PBIDT excluding other income declined 7.5 per cent to Rs 298.55 crore. The margin fell to 15.74 per cent from 20.69 per cent a year earlier, reflecting higher power and fuel costs as well as the impact of new operations.

As of 3:55 PM on October 6, 2026, JSW Cement shares were trading at Rs 113.15, up 1.57 per cent from the previous close. The stock was about 20.5 per cent below its 52-week high of Rs 142.30 and around 4.7 per cent above its 52-week low of Rs 108.05. Over the past year, the shares have declined 25.46 per cent, compared with a 3.22 per cent fall in the BSE 500.

The immediate focus for investors will be the pace at which the enlarged Nagaur facility absorbs capacity and whether planned cost-saving systems help the North India business move towards sustained profitability.

Disclaimer: The article is for informational purposes only and not investment advice.