Dalmia Bharat FY26 Annual Earnings Summary
3 quarters covered · ₹11,168 Cr revenue · ₹761 Cr PAT · 13.8% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY26Risks flagged during the year
The full pass-through of GST reduction from 28% to 18% has led to lower net realizations, and further price declines beyond GST pass-through are possible in some markets.
Q3 FY26 · highIndustry capacity utilization ~70% and new capacity additions may keep pricing under pressure.
Q4 FY26 · highPet coke prices have soared to ~$60/ton, packing costs are rising due to PP granules, and fuel/logistics costs are increasing. Management expects ₹125-150 per ton cost impact in Q1FY27.
Q2 FY26 · mediumPetcoke prices have increased to ~$116/ton, which could pressure variable costs in H2 if the trend continues.
Q2 FY26 · mediumThe outcome of the JP insolvency process is awaited; any delay or unfavorable outcome could impact the 75 MTPA capacity target for FY28.
Q2 FY26 · mediumTrade share fell to 52% (lowest in 4 years), indicating a shift toward lower-margin non-trade sales, which could pressure overall realizations.
Q3 FY26 · mediumManagement provided no update on ED reply; outcome uncertain.
Q4 FY26 · mediumIncentives outstanding increased to ₹839 crore due to delayed state government payouts during elections; collections were only ₹14 crore in Q4.
Q4 FY26 · mediumQ4 volume growth was impacted by an unexpected breakdown in East India, losing ~1.5 lakh tons of clinker and 300,000 tons of cement.
Q3 FY26 · lowAnalyst raised concern; management said they haven't heard of any delays.
Q3 FY26 · lowExtra ₹20-23 crore marketing spend in Q3 may distort underlying cost trends.
Q4 FY26 · lowAnalyst raised question about SFIO reopening a mutual fund case; management declined to comment, stating no communication received at company level.
What changed through the year
Q2 FY26 · FY26 capex revised down to ₹3,000 crore
Capex spend for FY26 estimated at ₹3,000 crore, lower than earlier guidance due to favorable credit terms from equipment suppliers and postponement of non-budget capex.
Q2 FY26 · Incentive accrual for FY26 at ₹240 crore
Total incentive accrual for FY26 expected to be around ₹240 crore, down from earlier guidance of ₹300 crore due to GST rate cut impact.
Q2 FY26 · Net debt-to-EBITDA to remain below 2x
Management guided that net debt-to-EBITDA will comfortably remain below 2x even with ongoing expansion capex.
Q2 FY26 · Cost reduction target of ₹150-200 per ton over 2 years
Management confirmed the cost reduction target of ₹150-200 per ton over the next two years is on track.
Q3 FY26 · Capex of ₹2,700 crore for FY26
Majority spent on Umrangso clinker, Belgaum, Pune, and Kadapa projects.
Q3 FY26 · Capex of ~₹4,000 crore in FY27 and ~₹8,000-9,000 crore over next two years
Includes ongoing expansions and potential new projects like Jaisalmer.
Q3 FY26 · Cost takeout target of ₹150-200 per ton
₹45-50/ton achieved so far; more initiatives in pipeline.
Q3 FY26 · Capacity target of ~75 MTPA by FY28
Jaisalmer project (7-8 MTPA) to be firmed up in next few months.
Q4 FY26 · FY27 capex guidance of ₹3,200-3,400 crore
Total capex for FY27 is expected to be ₹3,200-3,400 crore, with ₹2,200-2,300 crore for ongoing expansion projects.
Q4 FY26 · Cost reduction target of ₹50-100 per ton annually
Management targets internal cost take-out of ₹50-100 per ton every year, though external headwinds may offset.
Q4 FY26 · Capacity target of 72-75 million tons by FY28
The company aims to reach 72-75 million tons of cement capacity by FY28, with new projects to be announced.
Q4 FY26 · Volume growth to outperform industry
Management aims to deliver volume growth ahead of the industry, targeting 7-8% industry growth.