Dalmia Bharat Reports 9% Volume Growth in Q1 FY27; Advances Central India Expansion with 5.2 MnTPA Acquisition

What Happened ?

key details

Operational & Strategic Highlights:

• Installed cement capacity increased from 49.5 MnTPA to 54.7 MnTPA following the acquisition of 5.2 MnTPAcement assets.
• Commercial production commenced at the 2.5 MnTPA Chunar Grinding Unit during June 2026.
• Trial operations started at the 3.3 MnTPA Rewa Clinker Unit in July 2026.
• Cement sales volume increased 9% YoY to 7.6 million tonnes.
• Revenue from operations grew 7% YoY to ₹3,890 crore.
• EBITDA per tonne improved sequentially to ₹1,055 despite year-on-year cost pressures.
• The company completed the acquisition of Jaiprakash Associates’ cement business at an enterprise value of ₹2,850 crore.
• Dalmia entered into agreements to acquire a 41% stake (26% on a fully diluted basis) in Oyster Green Hybrid Five Private Limited for approximately ₹17 crore to source captive hybrid renewable power for its Kadapa plant.
• The company received multiple sustainability, CSR, environment and workplace excellence awards during the quarter.

Note:

• The quarter primarily reflects Dalmia Bharat’s strategic expansion rather than pure earnings growth.
• While acquisition-related costs reduced reported profitability, the newly acquired Central India assets are expected to strengthen the company’s market position and provide additional growth opportunities over the medium term. 

Risk Analysis

Summary:

• Despite healthy demand and expanding capacity, profitability remains exposed to acquisition integration costs, rising operating expenses, and input cost inflation across the cement industry.

Key Risks:

• Acquisition-related exceptional costs significantly reduced reported profit during the quarter.
• EBITDA and EBITDA per tonne declined year-on-year due to cost pressures.
• Temporary disruptions from state elections affected operations.
• Higher leverage following the acquisition increased the Net Debt-to-EBITDA ratio.
• Future profitability depends on successful integration of newly acquired assets and realization of operational synergies.

Worst Case:

• If input cost inflation remains elevated or integration of the acquired cement assets takes longer than expected, profitability and return on invested capital could remain under pressure despite healthy volume growth.

Risk Level: Medium

Company Commentary

According to Mr. Puneet Dalmia, Managing Director & CEO:

• The acquisition of Central India cement assets marks an important milestone in Dalmia Bharat’s ambition of becoming a pan-India cement company.
• The company’s prior familiarity with these assets and markets provides a strong foundation for faster integration.
• Management intends to rapidly ramp up operations while implementing Dalmia’s cost leadership practices to improve long-term returns.
• Despite geopolitical uncertainties, management remains optimistic about India’s long-term cement demand supported by continued infrastructure development.

According to Mr. Dharmender Tuteja, Chief Financial Officer::

• Strong pricing and focused operational initiatives helped offset a significant portion of cost escalation.
• The company maintained disciplined capital allocation despite the acquisition.
• Management remains focused on operational excellence and sustainable profitable growth.