Dalmia Bharat (DALBHARAT) Q2 25/26 earnings summary

Executive summary

• Revenue grew 11% YoY to INR 3,417 crore, with EBITDA up 60% YoY to INR 696 crore and EBITDA per tonne at INR 1,013; sales volume for Q2 FY26 was 6.9 MnT.

• Profitable growth remains a priority, with focus on cost leadership, brand positioning, and renewable energy share rising to 48.1% with 93 MW commissioned.

• GST on cement was reduced from 28% to 18%, with the full benefit passed to consumers, expected to boost demand.

• Capacity expansion projects in Belgaum, Kadapa, and Umrangso are progressing as planned, with Umrangso clinker unit (3.6 MnT) expected by Q3 FY26.

• Interim dividend of INR 4 per share declared for FY 2025-26.

Financial highlights

• Revenue increased 10.7% YoY to INR 3,417 crore in Q2 FY26, with H1 FY26 revenue at INR 7,053 crore, up 5.1% YoY.

• EBITDA margin improved to 20.4% in Q2 FY26 from 14.1% a year ago.

• Net debt at quarter-end was INR 1,602 crore, with net debt/EBITDA at 0.56x as of September 2025.

• Consolidated net profit for Q2 FY26 was Rs. 239 crore, up from Rs. 49 crore YoY.

• Finance cost increased to Rs 122 crore in Q2 FY26; cost of borrowing at 6.9%.

Outlook and guidance

• H2 is expected to see improved demand and higher volumes, supported by positive sentiment and good monsoons.

• CapEx for FY2026 is estimated at INR 3,000 crore, with FY2027 CapEx expected at INR 4,000 crore.

• Commercial production at Umrangso clinker unit expected by Q3 FY26; Belgaum expansion progressing with 52% civil work completed.

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

• Long-term industry demand projected to grow at 7%-8% CAGR over the decade, with sector growth typically 1.2x GDP.