Dalmia Bharat announced robust Q3 FY26 results, highlighting a 10% volume growth and the commissioning of a new clinker line in Umrangso, Assam. While prices softened sequentially, the company remains optimistic about long-term demand driven by infrastructure and housing. Cost efficiencies and renewable energy initiatives are expected to maintain profitability, targeting a capacity of 75 million tons by FY28 and 110-130 million tons by 2031.
Financial Performance Highlights
Dalmia Bharat reported a sales volume growth of 9.5% year-over-year, reaching 7.3 million tons for Q3 FY26. Revenue improved by 10% compared to the previous year. EBITDA stood at ₹602 crores, with an EBITDA per ton of ₹823, an 18% increase year-over-year. The company’s trade share was 62%, and premium product share reached 23%.
Operational Developments
Commercial production has commenced at the new clinker line in Umrangso, Assam, adding 3.6 million tons of clinker capacity per annum. The grinding capacity in Lanka, adding 2.4 million tons, was commissioned in Q4 last year. Belgaum-Pune and Kadapa expansions are progressing as scheduled, increasing the company’s total capacity to 61.5 million tons. Jaisalmer project development is underway with a potential capacity target of 75 million tons by FY28.
Cost Management and Sustainability
The company continues to focus on cost efficiencies, targeting a cost take-out of ₹150-200 per ton. Renewable energy share reached 48% of consumption, with a total RE capacity of 410 MW after commissioning an additional 23 MW this quarter. Logistics costs decreased by 5.6% year-over-year. CAPEX for FY26 is expected to be around ₹2,700 crores, primarily spent on the Umrangso clinker, Belgaum-Pune units, and the Kadapa project.
Market Outlook and Future Plans
Dalmia Bharat anticipates continued government investments in infrastructure and capacity building to support cement demand. The company expects cement demand to grow by about 6% year-over-year for FY26. It aims to expand its presence in new regions and reach a capacity of approximately 75 million tons by FY28 and target 110-130 million tons by 2031. The company anticipates positive momentum in demand for Q4 with supportive prices.
Source: BSE
