Dalmia Bharat Limited , a prominent player in the Indian cement industry, has announced strategic investments in solar power special purpose vehicles (SPVs) to bolster its renewable energy portfolio. The company's subsidiaries are set to acquire stakes in three SPVs for a total consideration of ₹7.8 crore, aiming to enhance their solar power sourcing capabilities.

Key Acquisition Details

Strategic Rationale

The acquisitions align with Dalmia Bharat's commitment to sustainability and renewable energy adoption. The company aims to:

1. Enhance its renewable power supply sources
2. Progress towards its RE 100 commitment by 2030
3. Achieve carbon negativity by 2040

Transaction Details

• The investments will be made through cash consideration
• Acquisitions are subject to customary conditions precedent
• Expected completion timeline: Within 3 months

Impact on Operations

These strategic investments will enable Dalmia Bharat to source solar power as a captive consumer, potentially reducing its reliance on conventional energy sources and lowering its carbon footprint. The move is in line with the company's long-term sustainability goals and may contribute to operational cost efficiencies in the future.

Market Implications

While the immediate financial impact of these acquisitions may be limited given the investment size, the strategic importance lies in Dalmia Bharat's proactive approach to sustainable energy sourcing. This move could potentially enhance the company's environmental, social, and governance (ESG) profile, which is increasingly important for investors and stakeholders in the construction materials sector.

As the cement industry faces growing pressure to reduce its environmental impact, Dalmia Bharat's investment in renewable energy infrastructure demonstrates its commitment to sustainable practices and may set a precedent for other players in the sector.

Dalmia Bharat Limited , a leading cement manufacturer, has reported robust financial results for the second quarter of fiscal year 2026, demonstrating significant growth in revenue and profitability. The company's performance highlights its resilience in a challenging market environment and its commitment to sustainable growth.

Key Financial Highlights

Operational Performance

Dalmia Bharat maintained its focus on profitable growth, achieving an EBITDA per ton of ₹1,013.00, marking the second consecutive quarter of four-digit cement EBITDA per ton. The company's trade share stood at 62%, while the premium product share was 22% during the quarter.

Cost Management

The company demonstrated effective cost management:

• Raw material costs increased marginally by 1% to ₹799.00 per ton
• Power and fuel costs rose by 1% to ₹1,017.00 per ton
• Logistics costs declined by 3.8% to ₹1,060.00 per ton

Sustainability Initiatives

Dalmia Bharat continues to make strides in sustainability:

• Achieved 48% renewable energy share
• Commissioned 93 MW of renewable energy capacity

Financial Position

The company maintains a strong balance sheet:

• Gross debt: ₹6,621.00 crore
• Net debt: ₹1,602.00 crore
• Net debt-to-EBITDA ratio: 0.56x

GST Impact and Dividend

• The company has passed on the entire benefit of GST reduction from 28% to 18% to consumers
• The Board declared an interim dividend of ₹4.00 per share

Expansion Plans

Dalmia Bharat is progressing with its capacity expansion projects:

• Belgaum and Kadapa projects are on track
• Trial runs commenced at the new 3.6 million ton clinker line in Umrangso, Assam

Outlook

While the first half of FY26 saw slower growth due to erratic weather conditions, the company expects improved momentum in the second half. The recent GST rate reduction and potential policy changes, such as allowing ECBs for the real estate sector, are expected to support cement demand in the medium to long term.

Puneet Dalmia, Managing Director and CEO, commented, "We are focused on driving profitable growth through sustained improvement in revenues and deepening our cost leadership. Our strong performance this quarter, despite challenging conditions, demonstrates the resilience of our business model and the effectiveness of our strategies."

The company remains committed to its capacity expansion plans and sustainability goals, positioning itself for long-term growth in the Indian cement market.