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

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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 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-1.39% | -1.17% | +0.71% | +20.63% | +21.57% | +193.57% |