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.

Dalmia Bharat , a prominent cement manufacturer, has announced significant revisions to its financial projections for the upcoming fiscal years. The company has adjusted its capital expenditure (capex) estimates and incentive forecasts for FY26 and FY27, signaling a shift in its investment strategy and financial outlook.

Revised Capital Expenditure Plans

Dalmia Bharat has made notable changes to its capital expenditure plans:

The company has set its FY26 capex estimate at INR 3,000 crores. For FY27, Dalmia Bharat projects a capex of approximately INR 4,000 crores.

Adjusted Incentive Forecasts

Along with the capex revisions, Dalmia Bharat has also updated its incentive forecasts:

The company has reduced its FY26 incentive forecast from INR 300 crores to INR 240 crores. For FY27, Dalmia Bharat anticipates incentives of INR 200 crores.

Volume Growth and Sector Outlook

While specific volume guidance for FY26 was not provided, Dalmia Bharat's management expressed optimism about volume growth in the latter half of FY26. They expect better performance in the second half compared to the first half of the fiscal year.

The company's perspective on the cement sector's growth is tied to the overall economic performance. Dalmia Bharat believes that the cement sector's growth typically follows a trajectory of 1.2 times the GDP growth rate.

Financial Stability

Despite the revised expansion plans, Dalmia Bharat's management has assured stakeholders that the company's financial stability remains a priority. They have committed to maintaining the net debt to EBITDA ratio below 2:1, indicating a focus on balanced growth and financial prudence.

These revisions in capex and incentive forecasts, coupled with the management's outlook on volume growth and sector performance, provide insights into Dalmia Bharat's strategic planning and financial management for the coming fiscal years.