Dalmia Bharat (DALBHARAT) Q1 25/26 earnings summary

Executive summary

• Achieved highest ever quarterly EBITDA of INR 883 crore, up 32% YoY, with EBITDA per ton improving 40% YoY to INR 1,261, despite a 6% YoY decline in sales volumes to 7 million tonnes, mainly due to the end of tolling arrangements with Jaiprakash Associates Limited.

• Focused on balancing volume growth and profit margins, prioritizing profitable sales and brand strengthening over market share in certain regions.

• Continued investment in capacity expansion to become a pan-India player, with a clear capital allocation framework and a mix of internal accruals and debt funding.

• Net Debt/EBITDA stood at 0.33x as of June 30, 2025, reflecting a strong balance sheet.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were approved by the Board and reviewed by statutory auditors.

Financial highlights

• Revenue remained flattish at INR 3,636 crore; share of trade sales increased to 68% from 64% YoY; premium product mix steady at 22%.

• EBITDA margin improved to 24.3%, up 5.8 percentage points YoY; total cost per ton increased 2.1% YoY to INR 3,932.

• Raw material cost per tonne rose 8.5% YoY due to new mineral tax; power and fuel cost per tonne increased 3.8% YoY to INR 981; logistics cost per tonne rose 2% YoY to INR 1,135.

• Renewable energy consumption increased to 41.2% from 35% YoY.

• Standalone revenue from operations for Q1 FY26 was ₹75 crore, with profit after tax at ₹34 crore and EPS at ₹1.76.

Outlook and guidance

• Cement demand expected to grow 6-7% in FY2026, supported by government spending and housing sector; demand growth to pick up post-monsoon.

• Clinker capacity expected to reach 34.3 MnT by Q2 FY28, with major expansions in South and North East regions.

• Operational renewable energy capacity projected to reach 576 MW by FY26.

• Confident of maintaining net debt/EBITDA below 2x despite ongoing expansions.

• The company continues to evaluate legal and regulatory developments affecting contingent liabilities and incentives.