Dalmia Bharat has unveiled an ambitious capacity expansion strategy during its recent conference call, outlining clear growth targets that position the company for significant scale-up in the Indian cement sector. The comprehensive expansion plan spans multiple phases with specific milestones set for the coming years.

Capacity Expansion Roadmap

The company has established a structured approach to capacity growth with well-defined targets across different time horizons. The expansion strategy demonstrates the company's commitment to strengthening its market position through systematic capacity additions.

Strategic Growth Framework

The capacity expansion plan reflects a phased approach to growth, with the company targeting around 75 million tons by FY28 as an intermediate milestone. This represents a significant step toward the ultimate long-term vision of achieving 110 million to 130 million tons of capacity by 2031.

The current project pipeline, which is expected to contribute 61.5 million tons to the overall capacity, forms the foundation of this expansion strategy. These ongoing projects represent concrete steps toward achieving the stated capacity targets and demonstrate the company's active progress in executing its growth plans.

Market Positioning Strategy

The announced capacity targets indicate the company's intention to significantly expand its footprint in the Indian cement market. The substantial increase from current levels to the projected 2031 capacity range represents one of the more aggressive expansion plans in the sector, reflecting confidence in long-term demand prospects and the company's operational capabilities.

Dalmia Bharat management has provided positive guidance on India's economic outlook and cement sector prospects during their recent conference call, projecting robust growth across key metrics for the upcoming fiscal year.

Economic Growth Projections

The company's management team has projected India's GDP growth at 7.30% for the current fiscal year, indicating confidence in the country's economic fundamentals and growth trajectory. This projection reflects the management's assessment of various macroeconomic factors influencing India's economic performance.

Cement Sector Outlook

For the cement industry, management has shared encouraging forecasts for FY26 performance. The company anticipates full-year FY26 cement demand growth of approximately 6.00% year-over-year, suggesting sustained momentum in the construction and infrastructure sectors.

Market Momentum Continuation

The management emphasized that the positive momentum observed in Q4 is expected to continue, supporting their optimistic outlook for cement demand growth. This sustained momentum indicates underlying strength in the sectors that drive cement consumption, including residential construction, commercial projects, and infrastructure development.

These projections from Dalmia Bharat's management reflect confidence in both India's broader economic performance and the specific dynamics of the cement industry, positioning the company for potential growth opportunities in the upcoming fiscal year.