Birla Corporation Limited delivered robust financial performance in the December quarter despite facing challenging market conditions, with net profit surging 69% and EBITDA margin improving significantly year-on-year. The company continued its strategic focus on premium cement products and operational efficiency improvements.

Strong Financial Performance Despite Market Headwinds

The company reported impressive bottom-line growth with consolidated net profit jumping 69% to Rs 52.76 crore compared to Rs 31.20 crore in the same quarter last year. Latest data shows EBITDA margin expanded to 13.55% from 10.99% in the previous year, reflecting improved operational efficiency.

Consolidated revenue for the quarter declined to Rs 2,150 crore from Rs 2,260 crore year-on-year, primarily due to lower cement sales volumes and pricing pressures across markets. Cement sales by volume fell 6% to 4.23 million tons amid an estimated 4-6% decline in prices across markets.

Cement Division Shows Operational Excellence

The Cement Division achieved significant margin improvement with EBITDA margin expanding to 14.8% compared to 11.9% in the same period last year. Overall cost of cement production decreased 4% from the previous year, reflecting the company's focus on operational efficiency.

Despite weak pricing environment, the Cement Division's gross realization remained relatively stable at Rs 4,754 per ton. However, improved operational efficiency drove EBITDA per ton up 23% to Rs 702.

Strategic Focus on Premium Products Yields Results

The company's strategic emphasis on premium and blended cement products continued to deliver positive outcomes. Blended cement sales increased to 87% of total sales from 79% in the comparable period, while premium cement sales in the B2C segment rose to 63% from 59% year-on-year.

Renewable Energy and Cost Optimization Initiatives

Birla Corporation made substantial progress in rationalizing power and fuel costs through strategic initiatives. Power and fuel cost per ton of cement production was reduced 6% year-on-year and 2% sequentially. Renewable power consumption expanded to 31% from 26% in the previous year.

The company has implemented several renewable energy projects including bagasse power sourcing at its Durgapur cement factory and rooftop solar installation at Birla Jute Mills. Additionally, the board approved an additional 17-MW wind-solar hybrid power from Battery Energy Storage System at the Maihar cement factory.

Jute Division Faces Raw Material Challenges

The Jute Division encountered significant headwinds due to raw material shortages and price escalation. The division reported a cash loss of Rs 2.14 crore for the December quarter as jute cost per ton increased 54% year-on-year and 22% sequentially. Despite these challenges, revenue from jute and shopping bags grew 31% year-on-year to Rs 132 crore, driven by 33% increase in domestic sales and 81% rise in exports.

Birla Corporation Limited has secured a significant legal victory with the Calcutta High Court rejecting interim applications that sought to prevent the implementation of its amended Articles of Association. The company received the court orders on January 23, 2026, at 10:17 AM IST, marking a crucial development in ongoing litigation proceedings.

Court Rejects Restraining Applications

The Calcutta High Court, through its orders dated January 20, 2026, rejected interim applications filed by five respondent/plaintiff parties on January 17, 2026. These applications specifically sought to restrain Birla Corporation from implementing the amended Articles of Association as outlined in Agenda Item No. 5 of the company's 105th Annual General Meeting notice.

Background Litigation Context

This latest ruling builds upon previous court decisions from December 2025. The Calcutta High Court had earlier dismissed two Civil Revisional Applications on December 22, 2025 - C.O. No. 4320 of 2025 (The Punjab Produce & Trading Co. Pvt. Ltd. & Ors. Vs. Manoj Kumar Mehta & Ors.) and C.O. No. 4338 of 2025 (The Punjab Produce & Trading Co. Pvt. Ltd. & Ors. Vs. Birla Corporation Limited & Ors.), both filed by five promoter shareholders.

The December orders had directed that voting results for Resolution No. 5 regarding the amended Articles of Association be published, while stipulating that the appeal court must dispose of miscellaneous appeals within one month before the amended articles take effect.

Regulatory Compliance and Disclosure

Birla Corporation has maintained full regulatory compliance throughout the litigation process, making disclosures under Regulation 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided comprehensive details as required under SEBI Master Circular No. SEBI/HO/CFD/PoD-2/CIR/P/0155 dated November 11, 2024.

Current Legal Status

With the rejection of the interim applications, Birla Corporation has cleared a significant hurdle in implementing its amended Articles of Association. The court's decision to dispose of the applications removes the immediate legal impediment that the applicants sought to establish. The company continues to operate under the framework established by the December 2025 court orders while maintaining transparency through regular regulatory disclosures.

The information has been made available on the company's official website at www.birlacorporation.com , ensuring stakeholder access to all relevant legal developments and maintaining corporate governance standards throughout the litigation process.