Ran on 06 Apr 2026
Management delivered on 1 of 4 commitments (25% hit rate). Key misses: Aggressive Capacity Expansion by Top Players (Revised), Green Cement and Decarbonization Push (Revised).
| Metric | Commentary | Source |
|---|---|---|
Renewable Energy Capacity Target: 576 Megawatt | The company is on track to scale its operational renewable energy capacity to 576 Megawatt by the end of FY '26. | Concall Nov 2025 p.5 |
Production Capacity Target: 3.6 million ton per annum clinker line | Commercial production for the new 3.6 million ton per annum clinker line in Umrangso, Assam is expected to begin in Q3 FY '26. | Concall Nov 2025 p.5 |
Incentive Accrual Target: Rs. 240 crores | The company expects total incentive accrual for the year to be around Rs. 240 crores, revised from earlier guidance of Rs. 300 crores due to GST rate cuts. | Concall Nov 2025 p.6 |
CAPEX Target: Rs. 3,000 crores | Management estimates total CAPEX spend for FY '26 to be approximately Rs. 3,000 crores. | Concall Nov 2025 p.6 |
Cement Capacity Target: 75 million tons | Management targets a 75-million-ton capacity milestone by FY '28. | Concall Nov 2025 p.9 |
Cement Capacity Target: 75 MnT | Target to reach 75 MnT cement capacity by FY2028. | PPT Nov 2025 p.10 |
“Commissioning of the clinker unit at Umrangso is expected in Quarter 2 of FY26.”
“Trial runs in September 2025; Commercial production in Q3 FY26.”
Management confirmed robust growth and progress on expansion during the Q3 FY26 earnings call, specifically highlighting the 3.6 MnT clinker line in Umrangso, Assam.
Dalmia Bharat Limited (DALBHARAT.NS) - Yahoo Finance“Operational Renewable Energy (RE) capacity is projected to reach 595 MW by the end of FY26.”
“Revised target of 576 MW by end of FY26.”
The company is maintaining its focus on decarbonization as a core strategic pillar, with recent earnings calls emphasizing the transition to renewable energy sources.
Dalmia Bharat Limited (DALBHARAT.NS) - Yahoo! Finance Canada“Commitment to maintain a Net Debt / EBITDA ratio of less than 2.0x.”
“0.33x”
The company has maintained a consistent reporting schedule and transparent communication regarding its financial health and debt ratios during recent quarterly calls.
Dalmia Bharat Limited (DALBHARAT.BO) - Yahoo Finance| Metric | Promise | Actual | Status | Source |
|---|---|---|---|---|
Capex Q2 FY26 | Expected total capex spending for FY26 is approximately INR 4,000 crores. | Rs. 3,000 crores | Revised | Concall Nov 2025 p.6 Concall Aug 2025 p.7 |
Incentive accruals Q2 FY26 | Anticipating total incentive accruals of approximately Rs. 300 crores for FY26. | Rs. 240 crores | Revised | Concall Nov 2025 p.6 Concall May 2025 p.6 |
Project completion Q2 FY26 | Commissioning of the clinker unit at Umrangso is expected in Quarter 2 of FY26. | Commercial production expected in Q3 FY26 | Revised | Concall Nov 2025 p.5 Concall May 2025 p.7 |
Renewable energy capacity Q2 FY26 | Targeting to reach 595 megawatts of operational renewable energy capacity by the end of FY26. | 576 Megawatt | Revised | Concall Nov 2025 p.5 Concall May 2025 p.6 |
Cost per ton Q2 FY26 | Targeting a reduction in cement production costs by Rs. 150 to 200 per ton over the next two years. | On track | In Progress | Concall Nov 2025 p.12 Concall May 2025 p.5 |
Net Debt / EBITDA Q2 FY26 | Commitment to maintain a Net Debt / EBITDA ratio of less than 2.0x. | 0.56x | Met | Concall Nov 2025 p.7 PPT May 2025 p.49 |
Cement Capacity Q2 FY26 | Target to reach a cement capacity of 75 MnT by FY2028. | Target maintained; visibility by March '26 | In Progress | Concall Nov 2025 p.9 PPT May 2025 p.10 |
Project completion Q2 FY26 | Commissioning of the clinker unit at Umrangso is expected in Quarter 2 of FY26. | Trial run commenced; commercial production expected by Q3 FY26. | Revised | PPT Nov 2025 p.11 Concall May 2025 p.7 |
Incentive accruals Q2 FY26 | Anticipating total incentive accruals of approximately Rs. 300 crores for FY26. | Revised target of Rs. 240 crores for FY26. | Revised | PPT Nov 2025 p.17 Concall May 2025 p.6 |
Renewable Energy Capacity Q2 FY26 | Operational Renewable Energy (RE) capacity is projected to reach 595 MW by the end of FY26. | Revised target of 576 MW by end of FY26. | Revised | PPT Nov 2025 p.43 PPT May 2025 p.42 |
CAPEX Q2 FY26 | Planned CAPEX for FY26 is estimated at approximately Rs. 3,500 crores. | Revised FY26 CAPEX guidance of ~Rs. 3,000 crores. | Revised | PPT Nov 2025 p.71 Concall May 2025 p.7 |
Net Debt / EBITDA Q2 FY26 | Commitment to maintain a Net Debt / EBITDA ratio of less than 2.0x. | Net Debt to EBITDA at 0.56x. | Met | PPT Nov 2025 p.11 PPT May 2025 p.49 |
Cost Efficiency Gain Q2 FY26 | Target to achieve cost savings of Rs 150-200/T through various efficiency levers by FY27. | Target maintained for FY27. | In Progress | PPT Nov 2025 p.46 PPT May 2025 p.45 |
Cement Capacity Q2 FY26 | Target to reach a cement capacity of 75 MnT by FY2028. | 49.5 MnT current; 75 MnT target maintained for FY28. | In Progress | PPT Nov 2025 p.33 PPT May 2025 p.10 |
Project completion Q1 FY26 | Commissioning of the clinker unit at Umrangso is expected in Quarter 2 of FY26. | Trial runs in September 2025; Commercial production in Q3 FY26. | Revised | Concall Aug 2025 p.7 Concall May 2025 p.7 |
CAPEX Q1 FY26 | Planned CAPEX for FY26 is estimated at approximately Rs. 3,500 crores. | INR 4,000 crores | Revised | Concall Aug 2025 p.7 Concall May 2025 p.7 |
Clinker capacity Q1 FY26 | Total clinker capacity is projected to reach 27.1 million tons by the end of FY26. | 27.1 million tons | In Progress | Concall Aug 2025 p.7 Concall May 2025 p.9 |
Incentive accruals Q1 FY26 | Anticipating total incentive accruals of approximately Rs. 300 crores for FY26. | INR 84 crores accrued in Q1 | In Progress | Concall Aug 2025 p.7 Concall May 2025 p.6 |
Net Debt / EBITDA Q1 FY26 | Commitment to maintain a Net Debt / EBITDA ratio of less than 2.0x. | 0.33x | Met | Concall Aug 2025 p.7 PPT May 2025 p.49 |
Cost per ton Q1 FY26 | Targeting a reduction in cement production costs by Rs. 150 to 200 per ton over the next two years. | Savings expected to be visible by H2 FY26 | In Progress | Concall Aug 2025 p.16 Concall May 2025 p.5 |
Project completion Q1 FY26 | Commissioning of the clinker unit at Umrangso is expected in Quarter 2 of FY26. | Timeline shifted to FY26; capacity increase of 3.6 MnT clinker planned for FY26. | Revised | PPT Aug 2025 p.35 Concall May 2025 p.7 |
Clinker capacity Q1 FY26 | Total clinker capacity is projected to reach 27.1 million tons by the end of FY26. | 27.1 MnT clinker capacity target for FY26 maintained. | In Progress | PPT Aug 2025 p.35 Concall May 2025 p.9 |
Incentive accruals Q1 FY26 | Anticipating total incentive accruals of approximately Rs. 300 crores for FY26. | Guidance revised down to Rs. 240 crores. | Revised | PPT Aug 2025 p.11 Concall May 2025 p.6 |
Net Debt / EBITDA Q1 FY26 | Commitment to maintain a Net Debt / EBITDA ratio of less than 2.0x. | Net Debt to EBITDA at 0.33x. | Met | PPT Aug 2025 p.51 PPT May 2025 p.49 |
ROCE Q1 FY26 | Targeting a Return on Capital Employed (ROCE) of 14-15% over the next few years. | Adjusted ROCE at 6.5% vs 14-15% target. | In Progress | PPT Aug 2025 p.49 PPT May 2025 p.49 |
Renewable Energy Capacity Q1 FY26 | Operational Renewable Energy (RE) capacity is projected to reach 595 MW by the end of FY26. | Revised target of 576 MW by end of FY26. | Revised | PPT Aug 2025 p.44 PPT May 2025 p.42 |
Dalmia Bharat is a major Indian cement producer that makes money by manufacturing and selling cement to home builders and large construction projects through a network of dealers and direct institutional sales.
2 engines · 4 moats (3 strong) · 1 geography ·Premium products now account for 24% of sales volume, up from 21% in early FY24, driving better realizations despite overall price softening in the market. (1 expanding, 1 contracting)
Trade Sales
The Trade Sales segment, which primarily serves individual home builders through a retail dealer network, accounted for 62% of sales volume in Q2 FY26.
Premium products now account for 24% of sales volume, up from 21% in early FY24, driving better realizations despite overall price softening in the market.
The trade mix (sales to individual home builders via dealers) expanded to 67% of total sales volume, up from 65% in the previous year, reflecting a strategic focus on higher-quality retail sales. (4 expanding, 1 contracting across 1 engine)
Trade Sales
The Trade Sales segment, which primarily serves individual home builders through a retail dealer network, accounted for 62% of sales volume in Q2 FY26.
The trade mix (sales to individual home builders via dealers) expanded to 67% of total sales volume, up from 65% in the previous year, reflecting a strategic focus on higher-quality retail sales.
The Pradhan Mantri Awas Yojana (PMAY) 2.0 expansion targets 3 crore additional houses, which acts as a critical demand driver for Dalmia's Trade segment (62% of volume). However, rising interest rates and inflation in rural construction materials could dampen individual home builder (IHB) sentiment in the near term.
Dalmia Bharat Limited (DALBHARAT.NS) - Yahoo FinanceTrade Sales
→ Stable (Not Specified)62%
The Trade Sales segment, which primarily serves individual home builders through a retail dealer network, accounted for 62% of sales volume in Q2 FY26.
“Share of Trade Sales: 62% in Q2 FY26”
The trade share, representing sales to individual home builders, decreased slightly to 62% from the previous quarter, impacting overall realizations.
The share of trade sales (retail) contracted from 68% in Q1 FY26 to 62% in Q2 FY26, reflecting a shift toward institutional/non-trade volumes during the quarter.
The share of trade sales (sales to individual home builders via dealers) increased to 68% from 64% in the same quarter last year, reflecting a strategic shift toward higher-quality, higher-margin retail segments.
Trade sales share increased to 68% in Q1 FY26, up from 62% in the prior period, indicating a stronger focus on the retail segment.
The trade mix (sales to individual home builders via dealers) expanded to 67% of total sales volume, up from 65% in the previous year, reflecting a strategic focus on higher-quality retail sales.
The share of trade sales (retail) has expanded to 67% in Q4 FY25, up from 62% in the previous period, indicating a successful push into the higher-margin individual home builder segment.
Premium products now account for 24% of sales volume, up from 21% in early FY24, driving better realizations despite overall price softening in the market.
Non-Trade Sales
↑ Growing (Not Specified)38%
Non-Trade or Institutional sales, which cater to large infrastructure and government projects, represented 38% of the sales volume in Q2 FY26.
“Share of Trade Sales: 62% [Inferred 38% Non-Trade]”
Non-trade (Institutional) sales share contracted to 32% as the company prioritized higher-margin trade channels.
The share of non-trade (institutional) sales has contracted to 33% as the company prioritizes the retail trade segment to improve the 'Quality of Sales'.
| # | Dimension | Score | Trend | Key Evidence | |
|---|---|---|---|---|---|
1 | Cost Advantage | 9/10 | Widening | The company maintains a significant cost advantage, operating as one of the lowest-cost producers in... | |
The company maintains a significant cost advantage, operating as one of the lowest-cost producers in India with a total cost per tonne of Rs 3,943, which is roughly 12% lower than the average of the top 6 competitors. “One of the Lowest Cost Producers in India... Total Cost/T: Dalmia 3,943 vs Average of Top 6 players 4,502” Investor PPT • Nov 2025 • p.41 Trend Evidence Q2 FY26 The company maintained its cost leadership moat, with a total cost per tonne of Rs 3,943, which is significantly lower than the top 6 competitor average of Rs 4,502. Investor PPT • Nov 2025 • p.41 Q1 FY26 The company maintained its cost leadership, with total cost per tonne remaining stable at Rs 3,932, significantly below the top 6 player average of Rs 4,502. Investor PPT • Aug 2025 • p.50 Q4 FY25 The company maintained its cost leadership with a total cost of Rs 3,943/T, which remains significantly lower than the industry average of Rs 4,512/T, though EBITDA per tonne softened to Rs 820 due to lower market prices. Investor PPT • May 2025 • p.40 | |||||
2 | Balance Sheet | 9/10 | Stable | The company possesses a strong balance sheet with a very low net debt-to-EBITDA ratio of 0.56x, prov... | |
The company possesses a strong balance sheet with a very low net debt-to-EBITDA ratio of 0.56x, providing them with the financial flexibility to fund massive capacity expansions toward their 75 million-ton goal. “Our balance sheet position remains strong, and our net debt-to-EBITDA stood at 0.56x.” Concall Transcript • Nov 2025 • p.7 Trend Evidence Q2 FY26 The balance sheet remains strong with a net debt-to-EBITDA of 0.56x, though net debt increased slightly due to a reduction in the value of treasury shares (IEX). Concall Transcript • Nov 2025 • p.7 Net Debt to EBITDA increased to 0.56x in H1 FY26 from 0.30x in FY25, indicating higher leverage to fund aggressive capacity expansion, though it remains well within the target of <2.0x. Investor PPT • Nov 2025 • p.50 Q1 FY26 The balance sheet remains exceptionally strong with a net debt-to-EBITDA ratio of 0.33x, significantly lower than the previous 0.56x, despite ongoing heavy capital expenditure. Concall Transcript • Aug 2025 • p.7 Net Debt to EBITDA increased slightly to 0.33x due to new debt issuance for expansion, but remains well within the target threshold of <2.0x. Investor PPT • Aug 2025 • p.51 Q4 FY25 The balance sheet remains exceptionally strong with a Net Debt to EBITDA ratio of 0.3x, significantly lower than the internal ceiling of 2.0x, despite ongoing heavy capital expenditure. Concall Transcript • May 2025 • p.7 The Net Debt to EBITDA ratio remains exceptionally strong at 0.30x, well below the target of 2.0x, despite a slight increase from 0.18x in the prior year due to aggressive capacity expansion. Investor PPT • May 2025 • p.48 | |||||
3 | Distribution | 8/10 | Widening | Dalmia Bharat possesses a strong distribution moat with over 46,600 channel partners serving 23 stat... | |
Dalmia Bharat possesses a strong distribution moat with over 46,600 channel partners serving 23 states, supported by a strategic shift toward direct dispatch (60%) to improve delivery efficiency. “46,600+ Channel Partners... Improvement in Direct Dispatch: 60% in Q2FY26 from 53% in Q2FY25” Investor PPT • Nov 2025 • p.44 Trend Evidence Q2 FY26 Logistics efficiency improved with costs declining 3.8% Y-o-Y, despite a slight increase in lead distance to 287 km. Concall Transcript • Nov 2025 • p.6 The distribution moat is expanding through improved logistics efficiency, with direct dispatch increasing to 60% in Q2 FY26 compared to 53% in the same quarter last year. Investor PPT • Nov 2025 • p.44 Q1 FY26 The distribution moat is strengthening through a significant shift in logistics efficiency, with direct dispatches reaching 62% compared to the historical average of 55%. Concall Transcript • Aug 2025 • p.6 Distribution efficiency improved as direct dispatch reached 62%, up from 57% in the same quarter last year. Investor PPT • Aug 2025 • p.45 Q4 FY25 Logistics efficiency improved through a shift toward direct dispatches (61% vs 56% last year) and a reduction in the average lead distance to 277 km. Concall Transcript • May 2025 • p.6 The distribution network has expanded to over 49,300 channel partners, up from 46,600, strengthening the company's reach across 23 states. Investor PPT • May 2025 • p.8 | |||||
4 | Scale | 7/10 | Widening | Dalmia Bharat is aggressively expanding its manufacturing footprint, with major projects in Belgaum,... | |
Dalmia Bharat is aggressively expanding its manufacturing footprint, with major projects in Belgaum, Kadapa, and Assam to secure regional dominance in the West, South, and Northeast Indian markets. “Belgaum and Kadapa expansion projects are progressing as per plan, which will give us 12 million tons per annum of cement capacity for West and South markets in the next couple of years.” Concall Transcript • Nov 2025 • p.5 Trend Evidence Q4 FY25 The company reached a milestone of 49.5 MnT capacity in FY25 and has set an aggressive roadmap to reach 110-130 MnT by 2031, confirming a massive expansion phase. Investor PPT • May 2025 • p.32 | |||||
Dalmia Bharat faces aggressive pricing competition in the East and South regions as larger peers like UltraTech and Adani Cement expand their footprint. While Dalmia is a leader in the Northeast, price volatility in the East (a key market) can lead to 'price wars' that erode regional premiums. (Dalmia Bharat Limited (DALBHARAT.NS) - Yahoo Finance)
Dalmia Bharat Limited (DALBHARAT.NS) - Yahoo FinanceIncreased government capital expenditure (Capex) on infrastructure projects like roads and bridges supports the 38% Non-Trade volume. However, institutional sales typically command lower margins than retail sales, potentially diluting overall profitability if the mix shifts too heavily toward government projects. (Dalmia Bharat Limited (DALBHARAT.NS) - Yahoo Finance)
Dalmia Bharat Limited (DALBHARAT.NS) - Yahoo FinanceDalmia's strong balance sheet (0.56x net debt-to-EBITDA) provides a buffer against high interest rates, allowing it to continue expansion while peers with higher leverage may have to slow down. This financial health is a structural advantage in a capital-intensive industry. (Dalmia Bharat Limited (DALBHARAT.NS) - Yahoo Finance)
Dalmia Bharat Limited (DALBHARAT.NS) - Yahoo FinanceSales volumes grew slightly despite heavy rains, supported by strong underlying demand from government infrastructure and housing projects.
Sales volumes have seen a reversal in the most recent quarter, declining 6% year-on-year due to the exit of tolling arrangements and a slower start to the fiscal year.
GST Rate Reduction
A significant reduction in government tax (GST) from 28% to 18% is expected to make cement cheaper for buyers and boost overall demand in the coming months.
The GST cut is a new fiscal catalyst expected to boost medium-term demand, though it has caused a short-term slowdown in channel inventory pickup.
“The reduction in GST on cement from 28% to 18% is a long-awaited fiscal relief... This significant reform is expected to boost consumption and support housing demand over the medium to long term.”
Premium Product Share
The company is maintaining a strong focus on high-quality 'premium' cement, which helps protect profit margins even when market conditions are tough.
Premium product share remains stable at 22%, indicating consistent execution of the value-added strategy despite market softness.
Premium product mix remains a stable pillar of the revenue strategy, holding steady at 22% despite a challenging demand environment in Q1.
The premium product mix is showing an accelerating trend, rising to 24% in the most recent quarter compared to 21% in the same period last year, indicating successful brand-building and higher-value sales.
“Our trade share stood at 62%, while premium product share was at 22% during the quarter.”
Premiumization
The company is shifting its product mix toward premium offerings like Dalmia DSP to drive higher profitability per bag.
Premium product contribution has stabilized at 22% after peaking at 24% in late FY25, indicating a steady but non-accelerating trend.
Premium product share shows a slight softening in the most recent quarter (Q1FY26) compared to the highs of H2FY25, though it remains within the historical 21-24% range.
The share of premium products is showing an accelerating trend, rising from 21% in early FY24 to 24% in the most recent quarters of FY25.
“Share of Premium Products... Q2 FY26 22%... DSP contributes meaningfully higher profitability than other products”
Sales Volume
Sales volumes grew slightly despite heavy rains, supported by strong underlying demand from government infrastructure and housing projects.
Volume growth has slowed to low single digits (2.9%) due to heavy rains and GST-related channel delays, though H2 is expected to be stronger.
Volume growth is persisting but at a low single-digit rate due to external factors like heavy rains, showing a decelerating trend compared to historical 10-year averages.
Sales volumes have seen a reversal in the most recent quarter, declining 6% year-on-year due to the exit of tolling arrangements and a slower start to the fiscal year.
While annual volumes have grown steadily over the last decade (4x growth), the most recent quarterly performance shows a softening in demand due to seasonal factors.
While overall volume growth was 2% for the full year, volumes from Dalmia's own plants grew 6% YoY, outperforming the industry average of 4-5%. However, Q4 saw a slight 3% YoY de-growth in total volumes due to the absence of tolling volumes.
Sales volume growth is steady but modest, increasing from 28.8 MnT in FY24 to 29.4 MnT in FY25, representing a 2% YoY growth.
“Sales volume has grown at 3% YoY in Q2FY26”
Belgaum and Kadapa expansion projects
The company is significantly expanding its footprint in the West and South Indian markets with two major projects that are currently on track.
“both Belgaum and Kadapa expansion projects are progressing as per plan, which will give us 12 million tons per annum of cement capacity for West and South markets in the next couple of years.”
Umrangso clinker line
Dalmia Bharat has started trial production at a new clinker facility in Assam, which will serve as a foundation for future grinding units in the Northeast and East India.
The project has moved from planning to trial production as of September 2025, with commercial production expected in Q3 FY26.
The project is progressing from planning to execution with trial runs currently underway, signaling imminent commercial contribution.
The Northeast expansion is nearing completion with trial runs scheduled for September 2025, moving the project from construction to the production phase.
The Northeast expansion is accelerating with the commissioning of a 2.4 MTPA grinding unit in Lanka, Assam in Q4 FY25, making Dalmia the largest producer in the region. The associated clinker unit at Umrangso is on track for Q2 FY26.
“we have commenced the trial run production of the new 3.6 million ton per annum clinker line in Umrangso, Assam in September and are expecting commercial production to begin in Q3 of FY '26.”
75-million-ton milestone
The company is targeting a long-term total capacity of 75 million tons by financial year 2028, which involves both building new plants and potentially acquiring others.
The company maintains its 75 MTPA target but visibility on the final 13.5 MTPA gap (organic vs inorganic/JP transaction) is deferred until March 2026.
The company has provided a concrete roadmap to reach 63.5 - 64 MTPA by FY28 through organic projects in Belgaum, Kadapa, and the Northeast, while keeping the 75 MTPA target as an aspiration dependent on M&A (JPA acquisition).
The company has reached a milestone of 49.5 MTPA and is entering a new phase of organic expansion in Western India (Pune and Belgaum) to reach its 75 MTPA goal. Management plans to detail the full roadmap to FY28 in the next quarter.
“So, we are still continuing with the 75-million-ton milestone for FY '28.”
Cement Capacity Expansion Plan
The company is aggressively expanding its cement production capacity to reach 75 million tonnes by FY28, nearly doubling its current footprint.
The company is maintaining a steady upward trajectory in capacity building, with specific regional milestones identified through FY28.
The company is maintaining an aggressive expansion trajectory, having grown from 24 MnT in FY15 to 49.5 MnT in FY25, with a clear roadmap to reach 75 MnT by FY28 through specific projects in Belgaum, Pune, and Kadapa.
The company is maintaining an aggressive capacity expansion trajectory, having grown from 24 MnTPA in FY15 to 49.5 MnTPA in FY25, with a clear roadmap to reach 75 MnTPA by FY28 and 110-130 MnTPA by 2031.
“Cement Capacity Expansion Plan... FY25 49.5... FY28e Milestone 75.0”
Green Power Transition
The company is rapidly increasing its use of green energy, aiming to reach 576 MW of renewable capacity by the end of FY26 to lower power costs.
Renewable energy capacity is scaling rapidly, with 93 MW added this quarter, moving toward the 576 MW target to drive cost leadership.
Green energy capacity is accelerating rapidly with a 93 MW addition in a single quarter and a clear path to nearly 600 MW.
Renewable energy adoption is accelerating, with consumption increasing from 35% to 41% year-on-year, supported by new capacity additions in the current quarter.
Renewable energy capacity is accelerating rapidly, with a target to reach 576 MW by FY26, representing a massive jump from the 17 MW base in FY20.
Renewable energy (RE) capacity is steadily increasing, with 267 MW currently operational and a clear target to more than double this to 595 MW by the end of FY26 to drive cost efficiencies.
Renewable energy capacity is accelerating significantly, with operational capacity jumping from 185 MW in FY24 to 267 MW in FY25, and a target of 595 MW by FY26.
“Operational RE capacity is expected to reach 576 MW by the end of FY26”
North East Capacity Share
Dalmia Bharat is maintaining its dominant position in the high-growth North-Eastern region, where it currently holds the leading capacity.
“Dalmia has the leading capacity (FY25)... Dalmia Bharat Limited 8.0”
Industry Consolidation
The top 4 cement players are expected to control nearly 60% of the market by next year, which typically leads to better pricing discipline in the industry.
“Share of Top 4 players in the cement supply capacity is expected to reach 59% by end of FY26”
EBITDA per ton
Profitability per ton has seen a massive jump, reaching four digits for the second quarter in a row due to better pricing and cost management.
“EBITDA grew by 60% Y-o-Y to Rs. 696 crores, which works out to be Rs. 1,013 per ton for the quarter. This is the second consecutive quarter where we have delivered four digit cement EBITDA per ton”
Renewable Energy Scaling
The company is rapidly shifting to green energy, which will lower long-term power costs and improve profit margins.
“During the quarter, we have achieved RE share of 48% on consumption basis... And we are on track to scale our operational renewable capacity to 576 Megawatt by end of Financial Year '26.”
Efficiency levers deepening Cost Leadership
Management is targeting significant cost savings through efficiency levers like renewable power and logistics optimization to boost margins.
“Target to gain Rs 150-200/T by FY27 through cost efficiency levers”
EBITDA per Tonne
The company achieved a 4-digit EBITDA per tonne for the second consecutive quarter, signaling strong operational profitability despite pricing headwinds.
“EBITDA at Rs 1,013/T in Q2 FY26; achieved 4 digit EBITDA/T for 2nd consecutive quarter”
Jaisalmer Greenfield Project
The company is planning a major new 'Greenfield' (built from scratch) plant in Jaisalmer to enter new markets, with a decision expected by March 2026.
“for the Greenfield that we will do at Jaisalmer... that translates to about Rs. 5,000-odd crores for a 5-million-ton plant.”
Expansion into Pune, MH and Belgaum, KA
The company is expanding its geographic footprint into the Western market with new plants planned in Pune and Belgaum.
“+3.0 MnT Pune, MH... +3.0 MnT Belgaum, KA”
Pet Coke Price
Rising international prices for Pet Coke (a key fuel) are creating a cost headwind that could pressure profit margins in the second half of the year.
“The Pet Coke prices currently are around 116. So, naturally, pressure on the external front will be coming into the cost.”
CAPACITY_EXPANSION -> 3.6 million ton per annum clinker), by Q3 FY26
The Northeast expansion is nearing completion with trial runs scheduled for September 2025, moving the project from construction to the production phase.
“Our clinker unit at Umrangso is nearing completion, and we plan to start trial runs in September this year. With this, the commercial production should start in Q3 of FY '26.”
The project has moved from planning to trial production as of September 2025, with commercial production expected in Q3 FY26.
The project is progressing from planning to execution with trial runs currently underway, signaling imminent commercial contribution.
The Northeast expansion is accelerating with the commissioning of a 2.4 MTPA grinding unit in Lanka, Assam in Q4 FY25, making Dalmia the largest producer in the region. The associated clinker unit at Umrangso is on track for Q2 FY26.
REVENUE_DRIVER: Premium Product Share = 22%, growth: Flat YoY
The premium product mix is showing an accelerating trend, rising to 24% in the most recent quarter compared to 21% in the same period last year, indicating successful brand-building and higher-value sales.
“During the quarter, our premium product mix improved to 24% from 21% in Q4 FY24 and the trade mix improved to 67% from 65% last year.”
Premium product share remains stable at 22%, indicating consistent execution of the value-added strategy despite market softness.
Premium product mix remains a stable pillar of the revenue strategy, holding steady at 22% despite a challenging demand environment in Q1.
CAPACITY_EXPANSION (current: 387 MW -> 576 MW), by FY26e
Renewable energy capacity is accelerating significantly, with operational capacity jumping from 185 MW in FY24 to 267 MW in FY25, and a target of 595 MW by FY26.
“Operational RE capacity is expected to reach 595 MW by the end of FY26”
Renewable energy capacity is scaling rapidly, with 93 MW added this quarter, moving toward the 576 MW target to drive cost leadership.
Green energy capacity is accelerating rapidly with a 93 MW addition in a single quarter and a clear path to nearly 600 MW.
Renewable energy adoption is accelerating, with consumption increasing from 35% to 41% year-on-year, supported by new capacity additions in the current quarter.
Renewable energy capacity is accelerating rapidly, with a target to reach 576 MW by FY26, representing a massive jump from the 17 MW base in FY20.
Renewable energy (RE) capacity is steadily increasing, with 267 MW currently operational and a clear target to more than double this to 595 MW by the end of FY26 to drive cost efficiencies.
REVENUE_DRIVER: Share of Premium Products = 22%, growth: Steady
The share of premium products is showing an accelerating trend, rising from 21% in early FY24 to 24% in the most recent quarters of FY25.
“Share of Premium Products... Q4 FY25 24%”
Premium product contribution has stabilized at 22% after peaking at 24% in late FY25, indicating a steady but non-accelerating trend.
Premium product share shows a slight softening in the most recent quarter (Q1FY26) compared to the highs of H2FY25, though it remains within the historical 21-24% range.
REVENUE_DRIVER: GST Rate Reduction = 18%, growth: 10% tax cut
The GST cut is a new fiscal catalyst expected to boost medium-term demand, though it has caused a short-term slowdown in channel inventory pickup.
“The reduction in GST on cement from 28% to 18% is a long-awaited fiscal relief... expected to boost consumption and support housing demand over the medium to long term.”
CAPACITY_EXPANSION (current: approx 46 MTPA -> 75 million tons), by FY '28
The company has reached a milestone of 49.5 MTPA and is entering a new phase of organic expansion in Western India (Pune and Belgaum) to reach its 75 MTPA goal. Management plans to detail the full roadmap to FY28 in the next quarter.
“we have commissioned a Phase I of expansion milestone of 49.5 million tons per annum... We have recently announced capacity expansion of 3 million tons per annum at our existing plant in Belgaum, Karnataka along with a new greenfield 3 million ton per annum grinding unit in Pune, Maharashtra which is expected to be commissioned by end of Financial Year ‘27.”
The company maintains its 75 MTPA target but visibility on the final 13.5 MTPA gap (organic vs inorganic/JP transaction) is deferred until March 2026.
The company has provided a concrete roadmap to reach 63.5 - 64 MTPA by FY28 through organic projects in Belgaum, Kadapa, and the Northeast, while keeping the 75 MTPA target as an aspiration dependent on M&A (JPA acquisition).
REVENUE_DRIVER: Sales Volume = 29.4 MnT, growth: 3% YoY
While annual volumes have grown steadily over the last decade (4x growth), the most recent quarterly performance shows a softening in demand due to seasonal factors.
“Sales Volume MnT... FY24 28.8 FY25 29.4”
Volume growth has slowed to low single digits (2.9%) due to heavy rains and GST-related channel delays, though H2 is expected to be stronger.
Volume growth is persisting but at a low single-digit rate due to external factors like heavy rains, showing a decelerating trend compared to historical 10-year averages.
Sales volumes have seen a reversal in the most recent quarter, declining 6% year-on-year due to the exit of tolling arrangements and a slower start to the fiscal year.
While overall volume growth was 2% for the full year, volumes from Dalmia's own plants grew 6% YoY, outperforming the industry average of 4-5%. However, Q4 saw a slight 3% YoY de-growth in total volumes due to the absence of tolling volumes.
Sales volume growth is steady but modest, increasing from 28.8 MnT in FY24 to 29.4 MnT in FY25, representing a 2% YoY growth.
CAPACITY_EXPANSION (current: 49.5 MnT -> 75.0 MnT), by FY28e
The company is maintaining an aggressive capacity expansion trajectory, having grown from 24 MnTPA in FY15 to 49.5 MnTPA in FY25, with a clear roadmap to reach 75 MnTPA by FY28 and 110-130 MnTPA by 2031.
“Target of 75 MnT by FY2028... reach 110-130 MnT by 2031”
The company is maintaining a steady upward trajectory in capacity building, with specific regional milestones identified through FY28.
The company is maintaining an aggressive expansion trajectory, having grown from 24 MnT in FY15 to 49.5 MnT in FY25, with a clear roadmap to reach 75 MnT by FY28 through specific projects in Belgaum, Pune, and Kadapa.
MODERATE risk • 17 risks identified ·
Rising international Pet Coke prices and currency fluctuations (USD/INR) are creating upward pressure on production costs.
Pet Coke prices currently around $116 per ton
The risk is INTENSIFYING as management notes that fuel prices have started 'inching up' in the last couple of months and spot prices remain highly volatile.
Increasing renewable energy (RE) share, which improved from 34% to 39% in Q4, to reduce dependence on fossil fuels.
The risk is easing as Dalmia's Power & Fuel cost per ton (Rs 989) is significantly lower than the industry average (Rs 1,296) and has declined from FY24 levels.
Accelerating renewable power expansion (targeting 595 MW by FY26) and using multi-fuel kilns to manage fuel mix volatility.
The risk is INTENSIFYING as management noted Pet Coke prices have inched up to $116/ton from the $100/ton average seen in Q2, which will pressure margins in the coming quarter.
Management is optimizing the fuel mix between coal and Pet Coke based on pricing and continuing a cost reduction journey to minimize P&L impact.
The risk is EASING; Dalmia's Power & Fuel cost per ton (Rs 989) is significantly lower than the industry average (Rs 1,266), driven by a shift to renewable energy (48.1% share).
Increasing renewable energy capacity to 576 MW by end of FY26 and using multi-fuel kilns to switch fuels based on cost.
Aggressive future expansion plans will require massive capital expenditure, which could significantly increase debt levels by FY28.
Estimated Rs. 14,000-15,000 crores needed by FY28
Gross debt increased to Rs 6,456 Cr in Q1FY26 following a Rs 950 Cr NCD issuance. Net Debt to EBITDA remains low at 0.33x, but the trajectory of absolute debt is increasing.
Formal Capital Allocation Framework targeting Net Debt / EBITDA < 2.0x and using 80% of operating cash flow for growth/capex after shareholder returns.
The risk is INTENSIFYING as Net Debt increased from Rs 716 Cr in FY25 to Rs 1,602 Cr in H1FY26, and Net Debt to EBITDA rose from 0.30x to 0.56x.
Formal Capital Allocation Framework targeting Net Debt / EBITDA < 2.0x and using 10% of OCF for Green Energy/Innovation.
The risk is EASING in the short term as FY26 CAPEX guidance was lowered due to better credit terms with suppliers, though long-term spending remains high (Rs. 10,000-10,500 Cr through FY28).
Negotiating favorable credit terms with equipment suppliers and maintaining a Net Debt to EBITDA ratio below 2.0x.
The risk is STABLE. While gross debt increased by Rs. 629 crores in FY25, the Net Debt to EBITDA ratio remains very low at 0.3x, providing significant headroom for the planned Rs. 3,500 crore FY26 CAPEX.
Management committed that Net Debt/EBITDA will not cross 2.0x even while pursuing the 75 million ton capacity target.
While the JP transaction is not explicitly detailed, the company has successfully reached 49.5 MnT capacity and set a clear roadmap to 75 MnT by FY28, suggesting execution is proceeding through other routes.
Announced new organic capacity expansion of 6 MTPA mainly for new markets in West India (Pune and Belgaum).
Profitability per unit of cement sold has declined significantly over the last year, reflecting cost pressures or lower market prices.
EBITDA/Ton fell to Rs 820 in FY25 from Rs 1,333 in FY21
EBITDA per ton has continued its downward trajectory, falling to Rs 820 in FY25 from Rs 917 in FY24 and Rs 1,333 in FY21, indicating intensifying pressure on unit profitability.
Implementing cost efficiency levers including logistics optimization, operationalizing captive coal mines, and increasing renewable power to gain Rs 150-200/T by FY27.
The risk remains INTENSIFYING as PAT margins have continued to slide from 6% in FY24 to 5% in FY25, and the company explicitly states that softened cement prices primarily impacted performance.
Management is focusing on 'Quality of Sales' by increasing the share of premium products (22% in Q2FY26) and trade sales to protect realizations.
The risk is EASING as EBITDA per tonne improved to Rs. 926 in Q4 FY25, up from the full-year FY25 average of Rs. 820, driven by better cost management and volume recovery.
Management has launched a cost-reduction program targeting Rs. 150-200 per ton savings over 2 years through renewable energy and logistics optimization.
Profitability has seen a sharp recovery. EBITDA per ton rose to INR 1,261, representing a 40% increase Year-on-Year (Y-o-Y). EBITDA margins jumped to 24.3% from 18.5% in the same quarter last year.
Implementing a cost reduction journey targeting a further Rs 150 to 200 per ton reduction over two years through renewable energy and logistics optimization.
Profitability per ton (EBITDA/T) has seen a sharp recovery to Rs 1,261 in Q1FY26, up from Rs 820 in FY25, driven by higher realizations and cost efficiencies.
Implementing cost efficiency levers targeting a gain of Rs 150-200/T by FY27 through logistics optimization and renewable power.
The company faces a significant reduction in government incentive income due to the GST rate cut from 28% to 18%, which reduces the base for incentive accruals.
Incentive accrual for the year expected to be Rs. 240 crores vs earlier guidance of Rs. 300 crores
The risk is intensifying due to a new retrospective legislative action by the West Bengal government. The 'Revocation Act' enacted on April 2, 2025, cancels incentive schemes retrospectively, directly threatening INR 250 crores of the company's INR 780 crore outstanding incentive balance.
The company is challenging the constitutional validity of the Revocation Act in the Calcutta High Court and taking legal recourse to protect its interests.
The risk is INTENSIFYING as management confirmed the GST cut will defer incentive accruals, lowering the full-year guidance from Rs. 300 crores to Rs. 240 crores, with a further drop to Rs. 200 crores expected next year.
Management noted that the removal of the coal compensation cess will provide a partial offset of approximately Rs. 20 crores in H2 and Rs. 50-55 crores next year.
The company is actively reducing this risk by divesting its non-core holding; IEX holding was reduced from 14.9% to 10.8% during the period.
Divested non-core holding in IEX Ltd (4.1%); IEX holding now reduced to 10.8%.
The risk is EASING; the company has successfully reduced its non-core holding in IEX Ltd from 14.9% to 10.8% through divestment.
Divested non-core holding in IEX Ltd (4.1%); IEX holding now reduced to 10.8%.
The risk is STABLE as the company expects incentive accruals to remain at approximately Rs. 300 crores for FY26, consistent with the previous guidance for FY25, despite a slight decline in actual FY25 accruals to Rs. 336 crores.
Management is focusing on operational efficiency and volume growth to offset the impact of lower incentive rates, noting that incentives in the Northeast are likely to continue for 15-20 years.
Cement prices have softened, which has directly reduced the company's overall financial performance and profit margins.
PAT Margin dropped to 5.0% in FY25 from 11% in FY21
The risk is EASING as management reports price improvements in the North and East regions during Q4, and a significant price hike in the South (Rs. 30-40) in the first fortnight of April 2025.
The company is shifting its product mix toward premium products (increased to 24% from 21%) and trade sales (67% from 65%) to protect realizations.
The risk is easing as the company achieved its highest ever quarterly EBITDA of Rs 883 Cr in Q1FY26, with EBITDA margins recovering to 17.2% from the FY25 average.
Focus on improving 'Quality of Sales' by increasing the share of premium products (22% in Q1FY26) and trade sales (68% in Q1FY26).
Rising international Pet Coke prices and currency fluctuations (USD/INR) are creating upward pressure on production costs.
Pet Coke prices currently around $116 per ton
Fuel cost pressures are easing. Power and fuel costs per ton declined 2% Y-o-Y to INR 981, driven by a drop in fuel rates from $106/ton to $100/ton. Renewable energy consumption also increased to 41%.
Commissioned 26 MW of renewable energy capacity and improved the Clinker-to-Cement (CC) ratio to 1.71.
Profitability per unit of cement sold has declined significantly over the last year, reflecting cost pressures or lower market prices.
EBITDA/Ton fell to Rs 820 in FY25 from Rs 1,333 in FY21
EBITDA per ton has continued its downward trajectory, falling to Rs 820 in FY25 from Rs 917 in FY24 and Rs 1,333 in FY21, indicating intensifying pressure on unit profitability.
Implementing cost efficiency levers including logistics optimization, operationalizing captive coal mines, and increasing renewable power to gain Rs 150-200/T by FY27.
The risk remains INTENSIFYING as PAT margins have continued to slide from 6% in FY24 to 5% in FY25, and the company explicitly states that softened cement prices primarily impacted performance.
Management is focusing on 'Quality of Sales' by increasing the share of premium products (22% in Q2FY26) and trade sales to protect realizations.
The risk is EASING as EBITDA per tonne improved to Rs. 926 in Q4 FY25, up from the full-year FY25 average of Rs. 820, driven by better cost management and volume recovery.
Management has launched a cost-reduction program targeting Rs. 150-200 per ton savings over 2 years through renewable energy and logistics optimization.
Profitability has seen a sharp recovery. EBITDA per ton rose to INR 1,261, representing a 40% increase Year-on-Year (Y-o-Y). EBITDA margins jumped to 24.3% from 18.5% in the same quarter last year.
Implementing a cost reduction journey targeting a further Rs 150 to 200 per ton reduction over two years through renewable energy and logistics optimization.
Profitability per ton (EBITDA/T) has seen a sharp recovery to Rs 1,261 in Q1FY26, up from Rs 820 in FY25, driven by higher realizations and cost efficiencies.
Implementing cost efficiency levers targeting a gain of Rs 150-200/T by FY27 through logistics optimization and renewable power.
| Risk | May 2025 | Aug 2025 | Nov 2025 |
|---|---|---|---|
The company faces a significant reduction in government incentive income due ... HIGH Regulatory | |||
Cement prices have softened, which has directly reduced the company's overall... HIGH Margin & Cost | |||
Profitability per unit of cement sold has declined significantly over the las... HIGH Margin & Cost | |||
Rising international Pet Coke prices and currency fluctuations (USD/INR) are ... MEDIUM Margin & Cost | |||
Cement demand has started the year weaker than expected due to extreme weathe... MEDIUM Demand | |||
There is uncertainty regarding the timeline and outcome of a major inorganic ... MEDIUM Execution | |||
The company's investment in IEX is under a regulatory overhang due to governm... MEDIUM Governance | — | ||
The company reported a decline in average selling price (realization) that ap... MEDIUM Competitive | — | — | |
Aggressive future expansion plans will require massive capital expenditure, w... MEDIUM Balance Sheet |
