Freight Cost Spike from Strike (One-Off)
October strike in Meghalaya restricted clinker movement, forcing rake transport and increasing logistics costs by 60-70 rupees/tonne in Q3. Management expects Q4 to normalize as this was a one-time event.
STARCEMENT / Q3-FY26 / risks
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Material risks this quarter
medium
Subsidy Income Decline
Incentive/subsidy income fell 28% YoY to 33 crore due to GST reduction from 28% to 18%. Benefit from Siliguri plant's GST input credits won't flow until 7-8 months post-commissioning.
North India Competitive Intensity
Dalmia commissioned a large kiln in the Northeast, adding 50-55 MT capacity to the North region. Management acknowledged excess capacity risk but maintained brand-led pricing strategy over volume discounting.
Rajasthan Cost Escalation Risk
Analyst questioned whether 2,500 crore capex for 5 MT integrated plant is realistic (vs ~3,000 crore peer benchmarks). Management defended estimate based on recent kiln experience but acknowledged estimate may be premature.