Dalmia Bharat

Dalmia Bharat is purchasing shares in two special purpose vehicles (SPVs) - Velan Infra Projects for ₹6 crore and Arunachalam Solar Power for ₹1.8 crore. The acquisitions are aimed at procuring solar power as a captive user for the company's operations.

Dalmia Bharat Limited reported quarterly results with revenue growth of 11% year-on-year to Rs. 3,417 crores and EBITDA growth of 60% to Rs. 696 crores, achieving Rs. 1,013 per ton EBITDA. This marks the second consecutive quarter of four-digit cement EBITDA per ton. Volume growth was 2.9% year-on-year with realization increasing 7.6%. The company's trade share stood at 62% while premium product share was 22%. Raw material costs increased marginally by 1% to Rs. 799 per ton and power & fuel costs rose 1% to Rs. 1,017 per ton. The company achieved 48% renewable energy share and commissioned 93 MW of RE capacity. EBITDA margin improved to 20.4% from 14.1% in the same quarter last year. Net debt stood at Rs. 1,602 crores with debt-to-EBITDA ratio at 0.56x. The company passed on the entire GST rate reduction benefit from 28% to 18% to consumers. Capacity expansion projects at Belgaum and Kadapa are progressing as planned, with trial runs commenced at the new 3.6 million ton clinker line in Umrangso, Assam. The Board declared an interim dividend of Rs. 4 per share. CAPEX guidance for the year was revised to Rs. 3,000 crores from earlier estimates due to favorable credit terms with equipment suppliers.

Dalmia Bharat has revised its FY26 capital expenditure estimate to INR 3,000 crores, down from previous guidance. The company projects FY27 capex at around INR 4,000 crores. The cement manufacturer has also lowered its FY26 incentive forecast to INR 240 crores from INR 300 crores, with FY27 incentives expected at INR 200 crores. Management anticipates better volume growth in the second half of FY26 compared to the first half, though no specific volume guidance was provided for FY26. The company believes cement sector growth follows 1.2 times GDP growth. Despite expansion plans, management assured that net debt to EBITDA will remain under 2:1.