Dalmia Bharat Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26, disclosing its environmental, social, and governance performance. The report, which includes an Independent Assurance Statement from TUV India Private Limited, covers the period from April 01, 2025, to March 31, 2026, and is part of the company's Integrated Annual Report. The disclosures are made on a consolidated basis, encompassing the entity and its subsidiaries.

Environmental Performance

The company reported total energy consumption of 77,230 TJ for FY 2025-26, with energy intensity per rupee of turnover at 0.52 TJ/million Rs. Renewable energy sources accounted for 4,566 TJ of the total consumption. Dalmia Bharat achieved Zero Liquid Discharge (ZLD) across 100% of its cement manufacturing units, resulting in zero wastewater discharge outside plant premises. Total water withdrawal was recorded at 4.74 million kilolitres, with a water intensity of 157 in terms of physical output.

Greenhouse gas emissions data revealed total Scope 1 emissions of 15.75 million metric tonnes of CO2 equivalent and Scope 2 emissions of 0.48 million metric tonnes. The combined emission intensity per rupee of turnover stood at 110 metric tonnes of CO2 equivalent. The company identified GHG and climate change as a material opportunity, citing the Carbon Credit Trading Scheme as a strategic avenue for generating carbon credits.

Social and Governance Metrics

The company's workforce comprised 4,641 employees and 16,691 workers as of March 31, 2026. Women accounted for 4% of the total employees and 5% of the total workers. The Board of Directors included 8 members, with female representation at 12.5%. The report noted that 100% of permanent employees and workers were covered by health and accident insurance.

Safety statistics indicated zero fatalities among employees, while workers recorded 5 fatalities during the year. The Lost Time Injury Frequency Rate (LTIFR) for workers was 0.12 per one million person-hours worked. The company reported 1,395 customer complaints during the year, with 89 pending resolution at the close of the financial year.

Financial and Operational Details

Dalmia Bharat's primary business activity is cement and clinker manufacturing, which accounted for 98% of the turnover. The company operates 15 plants and 34 offices nationally. The paid-up capital was reported at Rs. 37,51,31,906. The report confirmed that the company has an anti-corruption policy in place and that no fines or penalties were imposed by regulators during the financial year.

Dalmia Bharat has received a maintained Outperform rating from global brokerage CLSA, which has set a target price of ₹2,100 for the cement major. The brokerage's constructive stance is anchored in the company's resilient medium-term growth outlook, supported by a combination of organic capacity additions and inorganic expansion through acquisitions.

JPA Asset Ramp-Up a Key Growth Driver

A central pillar of CLSA's positive thesis is the strong ramp-up potential of assets acquired from Jaiprakash Associates (JPA). The brokerage projects that these acquired assets will achieve utilisation levels exceeding 60% by FY28, reflecting a meaningful improvement in operational scale over the coming years. The following table summarises the key performance milestones highlighted by CLSA for the JPA assets:

On the profitability front, CLSA expects EBITDA from the JPA assets to reach ₹1,000 per tonne by FY29, signalling a significant improvement in asset productivity and cost efficiency as integration progresses.

Leverage Remains Manageable

Despite the scale of inorganic activity, CLSA notes that Dalmia Bharat's leverage is expected to remain below 1.4x, and crucially, this is projected to be achieved without any equity raising. This assessment underscores the brokerage's view that the company's balance sheet remains on a sound footing even as it absorbs the financial impact of acquisitions.

Near-Term Headwinds Acknowledged

CLSA does acknowledge near-term challenges facing the broader cement industry. Soft rural demand continues to weigh on volume growth, while margin pressure remains a concern in the current operating environment. These factors are seen as industry-wide headwinds rather than company-specific issues, and CLSA's Outperform rating reflects a view that Dalmia Bharat's medium-term fundamentals remain intact despite these short-term pressures.

Outlook

Overall, CLSA's maintained Outperform rating with a target price of ₹2,100 reflects confidence in Dalmia Bharat's ability to navigate near-term industry softness while delivering on its medium-term growth agenda. The combination of organic expansion, successful integration of JPA assets, and disciplined financial management forms the basis of the brokerage's constructive view on the stock.