Birla Corporation announced a strong performance for the December quarter, with net profit increasing by 71% to ₹53 crore. EBITDA grew by 18% to ₹312 crore. The company is focusing on cost rationalization and optimizing product mix. The Cement Division’s EBITDA margin improved to 14.8% from 11.9% in the previous year. Cement sales volume decreased by 6%, and revenue fell by 4% year-on-year.
Financial Highlights
Birla Corporation reported a 71% surge in net profit for the December quarter, reaching ₹53 crore. Consolidated EBITDA increased by 18% to ₹312 crore. These gains occurred despite challenging market conditions.
Key Strategies
The company is actively pursuing measures to rationalize operating costs, optimize product and geographical mix, and improve capacity utilization across its plants. These efforts are aimed at enhancing overall efficiency and profitability.
Cement Division Performance
The Cement Division’s EBITDA margin improved significantly to 14.8%, compared to 11.9% in the same period last year. This improvement was driven by a reduction in the overall cost of cement production, which decreased by 4% year-on-year.
Revenue and Sales Volume
Consolidated revenue for the quarter was down by 4% year-on-year, amounting to ₹2,178 crore. Cement sales volume experienced a 6% decline, falling to 4.23 million tons, amidst an estimated 4-6% decrease in prices across markets.
Impact of Labor Codes
The company made a provision of ₹34 crore in the December quarter to account for the estimated impact of labor codes introduced in November 2025. This has been reported as an exceptional item.
Market Trends
Demand was subdued in October and November but saw a strong recovery in December, particularly in the B2B segment. The company maintained its strategy of focusing on blended and premium cement sales in the B2C market, as prices remained soft in the B2B segment.
Sales and Production
Sales of blended cement increased to 87% of total sales, compared to 79% in the same quarter last year. Premium cement sales, led by the Perfect Plus brand, rose to 63% of B2C sales, up from 59% last year. Sales through the trade channel were at 78% of total sales, compared to 68% a year ago.
Renewable Energy Initiatives
The company is increasing its consumption of renewable power. Consumption of renewable power in Q3 rose to 31% from 26% a year ago. An agreement to source bagasse power at its Durgapur cement factory has been signed, and rooftop solar power installation at Birla Jute Mills has begun generation.
Jute Division Challenges
The Jute Division faced a cash loss of ₹2.14 crore for the December quarter due to a shortage of raw jute and a sharp increase in its price. The cost of jute per ton increased by 54% year-on-year and 22% sequentially.
Source: BSE
