Dalmia Bharat Ltd, one of India’s leading cement manufacturers, reported a strong set of Q1FY26 results with net profit nearly tripling year-on-year, driven by higher cement sales volumes, better operational efficiencies, and lower input costs. The company reported a consolidated net profit of ₹393 crore for the quarter ended June 30, 2025, compared to ₹135 crore in the same quarter last year, reflecting a robust 191% growth.
Key Highlights: Q1FY26 Results
According to the company’s filing, consolidated revenue rose to ₹4,358 crore, marking an 11% increase from ₹3,925 crore in Q1FY25. The company achieved:
- EBITDA of ₹913 crore, up 31% YoY
- EBITDA margin improved to 21% from 18.2% last year
- Cement volumes rose 8% YoY to 6.3 million tonnes
Attributing the strong performance to strategic cost control, operational efficiencies, and capacity ramp-up, Dalmia Bharat’s Managing Director, Puneet Dalmia, said:
“Our focus on sustainable growth, enhanced cost competitiveness, and disciplined capital allocation has enabled us to deliver robust profitability this quarter despite market challenges.”
Detailed Financial Performance
| Particulars (₹ crore) | Q1 FY26 | Q1 FY25 | YoY Change (%) |
|---|---|---|---|
| Revenue | 4,358 | 3,925 | +11.0 |
| EBITDA | 913 | 695 | +31.3 |
| EBITDA Margin (%) | 21.0 | 18.2 | +280 bps |
| Net Profit | 393 | 135 | +191.1 |
| EPS (₹) | 20.9 | 7.2 | +190.3 |
Key Operational Metrics
| Metric | Q1 FY26 | Q1 FY25 | YoY Change |
|---|---|---|---|
| Cement Sales Volume (MT) | 6.3 | 5.8 | +8.0% |
| Realisation per tonne (₹) | 6,912 | 6,703 | +3.1% |
| Operating Cost per tonne (₹) | 5,456 | 5,701 | -4.3% |
The improvement in operating cost per tonne was led by optimised fuel mix, reduction in logistics costs due to increased use of rail transport, and higher blended cement sales.
Management Commentary
Puneet Dalmia emphasised that the company is on track with its long-term vision to reach 110-130 MTPA cement capacity by 2031, supported by brownfield and greenfield expansions.
“We continue to focus on building a growth-oriented, sustainable, and profitable business with efficient cost structures and strong ESG compliance.”
Expansion Plans
Dalmia Bharat is executing multiple capacity expansion projects to consolidate its market position in eastern, southern, and western India:
| Project Location | Capacity Addition (MTPA) | Expected Completion |
|---|---|---|
| Bokaro, Jharkhand | +2.4 | Q3 FY26 |
| Ariyalur, Tamil Nadu | +1.2 | Q4 FY26 |
| Kadapa, Andhra Pradesh | +2.0 | Q1 FY27 |
These projects are aligned with its strategy to enhance regional market share, reduce logistics costs, and increase blended cement sales.
Debt and Balance Sheet Position
The company maintained a healthy balance sheet with:
- Net debt to EBITDA ratio at 0.4x, among the lowest in the cement sector
- Cash and cash equivalents of ₹1,850 crore
- Strong liquidity to fund ongoing capex and inorganic opportunities
Sustainability Initiatives
Dalmia Bharat continues to progress towards its goal of becoming carbon negative by 2040 through:
- Increasing blended cement ratio to 85%
- Enhancing waste heat recovery capacity
- Expanding use of alternative fuels and raw materials (AFR)
- Increasing renewable energy share to 20% of total power consumption by FY27
Analyst Views
Brokerages welcomed Dalmia Bharat’s strong results. An analyst from a leading domestic brokerage noted:
“Dalmia Bharat’s cost reduction, volume growth, and improved realisations led to robust profitability. Its net debt remains low despite aggressive expansion, supporting valuation re-rating.”
Stock Market Reaction
Following the Q1 results announcement, Dalmia Bharat shares closed at ₹2,362 on NSE, up 2.5%, reflecting investor confidence in its growth strategy and margin improvement trajectory.
Competitive Landscape
| Company | Q1 FY26 Net Profit (₹ crore) | YoY Growth (%) | EBITDA Margin (%) |
|---|---|---|---|
| Dalmia Bharat | 393 | +191.1 | 21.0 |
| UltraTech Cement | 2,111 | +35.5 | 19.3 |
| Shree Cement | 710 | +40.2 | 20.6 |
| Ambuja Cements | 1,050 | +58.0 | 21.5 |
Dalmia Bharat’s margins remain competitive within the sector, supported by its focus on blended cement and operational efficiencies.
Outlook
The company expects cement demand to remain strong, driven by:
- Government push for housing and infrastructure
- Revival in real estate sector demand
- Seasonal pick-up in construction activity in H2 FY26
Puneet Dalmia added:
“We remain committed to disciplined capital allocation, deleveraging, and creating sustainable shareholder value while pursuing growth opportunities across regions.”
Conclusion
Dalmia Bharat’s Q1FY26 performance, with net profit nearly tripling to ₹393 crore, strong revenue growth, and cost efficiencies, demonstrates its execution capabilities in a competitive market. With robust expansion plans and sustainability focus, it is well positioned for long-term growth and value creation in the Indian cement industry.
Disclaimer
This news content is for informational purposes only. It is not intended as investment advice. Readers are advised to consult financial experts before making any business or investment decisions based on this report.
