Dalmia Bharat Announces Rs 3,287 Cr Expansion, Reports Strong Q1 FY26 Results

2 min read     Updated on 22 Jul 2025, 08:13 PM
scanxBy ScanX News Team
whatsapptwittershare
Overview

Dalmia Bharat Limited unveiled expansion plans for its Kadapa facility, investing Rs 3,287 crore to increase cement capacity from 49.5 MnT to 61.5 MnT by Q2 FY28. The company reported robust Q1 FY26 results with revenue at Rs 3,636.00 crore, EBITDA up 31.90% to Rs 883.00 crore, and net profit surging 172.40% to Rs 395.00 crore. EBITDA margin improved to 24.30%, while sales volume decreased by 5.80% to 7.00 MnT. The company also commissioned 26 MW of renewable energy capacity and divested 4.10% stake in IEX Ltd for Rs 742.00 crore.

14741028

*this image is generated using AI for illustrative purposes only.

Dalmia Bharat Limited , a leading cement manufacturer in India, has unveiled ambitious expansion plans and reported robust financial results for the first quarter of fiscal year 2026. The company's strategic moves aim to strengthen its market position and capitalize on the growing demand in the cement sector.

Expansion Plans

Dalmia Cement (Bharat) Limited, a wholly-owned subsidiary of Dalmia Bharat, has approved a significant capacity expansion plan at its Kadapa facility. The Rs 3,287 crore project includes:

  • Addition of 3.6 MnT of clinker capacity
  • Increase of 6.0 MnT in cement capacity
  • Establishment of a 3.0 MnT bulk terminal in Chennai

This expansion is expected to be completed by Q2 FY28 and will boost the company's total cement capacity from 49.5 MnT to 61.5 MnT. The project will be financed through a combination of debt and internal accruals.

Q1 FY26 Financial Highlights

Dalmia Bharat has reported impressive financial results for Q1 FY26:

Metric Q1 FY26 YoY Change
Revenue from Operations Rs 3,636.00 crore +0.40%
EBITDA Rs 883.00 crore +31.90%
EBITDA Margin 24.30% +580 bps
Net Profit Rs 395.00 crore +172.40%
Sales Volume 7.00 MnT -5.80%

The company achieved its highest-ever quarterly EBITDA, with EBITDA per ton improving by 40% year-on-year to Rs 1,261.00. The Net Debt to EBITDA ratio stood at a healthy 0.33x as of June 30, 2025.

Operational Highlights

  • Renewable Energy: Commissioned 26 MW of renewable energy capacity under Group Captive agreements, increasing total operational RE capacity to 294 MW.
  • Share of renewable power consumption reached 41.20%.
  • Divestment: Sold 4.10% holding in IEX Ltd for Rs 742.00 crore, reducing its stake to 10.80%.

Management Commentary

Puneet Dalmia, Managing Director & CEO of Dalmia Bharat Limited, stated, "In the backdrop of strong economic fundamentals, robust government-led capex and increasing cement industry consolidation, we remain committed to becoming a Pan-India player. Our balance sheet remains strong to support this growth as we further prepare for the next leg of expansion in new regions."

He added, "Beginning of this year marks a recovery in cement realizations in our key markets, which has helped us deliver robust EBITDA growth, resulting in an EBITDA margin of 24.30%, which is an increase of 5.8 percentage points compared to last year."

Future Outlook

With the announced expansion plans and strong financial performance, Dalmia Bharat is positioning itself for continued growth in the cement sector. The company's focus on increasing capacity, improving operational efficiency, and investing in renewable energy aligns with the growing infrastructure demands and sustainability trends in India.

As the company progresses towards its vision of becoming a pan-India player, investors and industry observers will be keenly watching Dalmia Bharat's execution of its expansion strategy and its ability to maintain the strong financial performance demonstrated in Q1 FY26.

Historical Stock Returns for Dalmia Bharat

1 Day5 Days1 Month6 Months1 Year5 Years
-1.39%-1.17%+0.71%+20.63%+21.57%+193.57%
Dalmia Bharat
View in Depthredirect
like16
dislike

Dalmia Bharat Reports 172% Profit Surge in Q1, Announces 6 MnTPA Capacity Expansion at Kadapa

2 min read     Updated on 22 Jul 2025, 07:08 PM
scanxBy ScanX News Team
whatsapptwittershare
Overview

Dalmia Bharat's Q1 consolidated net profit jumped 172.40% to ₹395.00 crores. EBITDA increased 31.90% to ₹883.00 crores. Sales volume reached 7.00 million tonnes, with Net Sales Realization up 6.60% to ₹5,193.00 per tonne. The company plans to invest ₹3,287.00 crores in a new clinker and grinding unit in Andhra Pradesh, expected to be operational by Q2 FY28. The Board approved Birla Tyres Limited's reclassification request from promoter group to public category.

14737143

*this image is generated using AI for illustrative purposes only.

Dalmia Bharat , a leading cement manufacturer, has reported a robust performance for the first quarter ended June 30, with significant improvements in profitability and operational efficiency.

Financial Highlights

The company's consolidated net profit for Q1 surged to ₹395.00 crores, marking a substantial 172.40% increase from the same period last year. This impressive growth in profitability comes alongside a 31.90% year-on-year increase in EBITDA, which stood at ₹883.00 crores.

Operational Performance

Dalmia Bharat demonstrated strong operational improvements during the quarter:

  • Sales volume stood at 7.00 million tonnes.
  • Net Sales Realization (NSR) per tonne increased by 6.60% year-on-year to ₹5,193.00.

Balance Sheet Strength

Dalmia Bharat maintained a strong financial position:

  • Net Debt to EBITDA ratio stood at 0.33x as of June 30.

Expansion Plans

Dalmia Bharat announced significant capacity expansion plans:

  • Strategic investment of ₹3,287.00 crores to establish a 3.60 MnTPA clinker unit with a 6.00 MnTPA grinding unit at its existing Kadapa plant in Andhra Pradesh.
  • The new capacity is expected to be commissioned by Q2 FY28.
  • This expansion is in addition to the previously announced 6.00 MnT expansion in Belgaum.

Other Developments

  • The Board approved a request from Birla Tyres Limited for reclassification from promoter group category to public category, subject to stock exchange approval.

Dalmia Bharat's strong Q1 results, coupled with its expansion plans, position the company for continued growth in the Indian cement sector.

Historical Stock Returns for Dalmia Bharat

1 Day5 Days1 Month6 Months1 Year5 Years
-1.39%-1.17%+0.71%+20.63%+21.57%+193.57%
Dalmia Bharat
View in Depthredirect
like16
dislike
More News on Dalmia Bharat
Explore Other Articles
PC Jeweller Reports 81% Sales Growth in Q1, Plans Further Fund Raising 6 minutes ago
Ajax Engineering Reports Q1 Results, Appoints New Auditors 15 minutes ago
Scan Projects Limited Promoter Nirmal Gupta Reduces Stake by 4.71% 33 minutes ago
Dilip Buildcon Secures L-1 Position for INR 1,503 Crore Gurugram Metro Project 1 hour ago
Deep Industries Secures ₹97 Crore Workover Rig Contract from Oil India 3 hours ago
2,204.40
-31.10
(-1.39%)