Dalmia Bharat , a prominent player in the Indian cement industry, has unveiled an ambitious strategy to enhance its profitability and market position. The company is focusing on balancing volume growth with profit margins, aiming to achieve top-decile EBITDA per ton in the industry through enhanced cost leadership and improved sales performance.

Strategic Focus on Profitability

The cement manufacturer plans to exit unprofitable business segments as part of its strategy to optimize operations and boost overall profitability. This move is expected to streamline the company's portfolio and allow it to concentrate resources on high-performing areas.

Cost Leadership and Sales Performance

Dalmia Bharat's strategy revolves around two key pillars:

1. Enhanced Cost Leadership: The company is likely to focus on operational efficiencies and cost-cutting measures across its value chain.
2. Improved Sales Performance: This suggests a potential shift in sales strategies, possibly including better pricing, product mix optimization, or market expansion.

Recent Financial Performance

The company's strategic initiatives appear to be yielding positive results. In the most recent quarter:

• EBITDA Performance: Dalmia Bharat reported its highest-ever quarterly EBITDA of Rs 883.00 crore, marking a significant 31.90% increase year-over-year.
• EBITDA Margin: The EBITDA margin improved substantially to 24.30%, up from 18.50% in the same quarter of the previous year.
• Net Sales Realization (NSR): The company achieved an NSR per ton of Rs 5,193.00, representing a 6.60% increase year-over-year.

Operational Highlights

• Sales Volume: The company reported a sales volume of 7.00 million tonnes for the quarter.
• Cost Management: Dalmia Bharat maintained its position as one of the lowest total cost producers in the industry, with a total cost of Rs 3,932.00 per ton.

Expansion Plans

Dalmia Bharat has announced strategic investments to further strengthen its market position:

• A Rs 3,287.00 crore investment for a new 3.60 million tonnes per annum (MnTPA) clinker unit and a 6.00 MnTPA grinding unit in Kadapa, Andhra Pradesh.
• An additional 3.00 MnTPA bulk terminal in Chennai, Tamil Nadu.
• The Kadapa expansion is expected to be commissioned by Q2 FY28.

Sustainability Initiatives

The company continues to make strides in its sustainability efforts:

• Commissioned 26.00 MW of renewable energy capacity under Group Captive in the recent quarter.
• Total operational renewable energy capacity increased to 294.00 MW.
• ICRA ESG upgraded Dalmia Bharat's Combined ESG rating to 80 (Exceptional), highlighting the company's leadership in sustainability within the Indian cement sector.

Financial Position

Dalmia Bharat maintains a strong financial position:

• Net Debt to EBITDA ratio stood at 0.33x as of the most recent quarter-end.
• The company issued Non-Convertible Debentures (NCDs) worth Rs 950.00 crore at a weighted average cost of 7.50%.

With these strategic initiatives and robust financial performance, Dalmia Bharat appears well-positioned to achieve its goal of top-decile EBITDA per ton in the industry. The company's focus on cost leadership, coupled with its expansion plans and sustainability efforts, sets a strong foundation for future growth and profitability.

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:

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.