Dalmia Bharat reports strong Q2 FY26 earnings on GST cut, cost controls

Dalmia Bharat Limited reported an 11% year-on-year increase in revenues to INR 3,417 crores for Q2 FY26, with EBITDA soaring by 60% year-on-year to INR 696 crores, or INR 1,013 per ton. This marks the second consecutive quarter of four-digit cement EBITDA per ton, supported by improved realizations and cost controls. The company also highlighted significant fiscal relief from the reduction in GST on cement from 28% to 18%, a benefit fully passed on to consumers.

Despite softer-than-expected industry demand in Q1 and Q2 due to heavy rains and the initial GST regime change impacting inventory, Dalmia Bharat anticipates a pickup in momentum for the second half of the year. The company is progressing with its capacity expansion roadmap, including the Belgaum and Kadapa projects for 12 MTPA and trial production of a new 3.6 MTPA clinker line in Umrangso, Assam. CAPEX for FY26 is estimated at INR 3,000 crores, lower than previous guidance due to favorable credit terms.

The company's net debt stood at INR 1,602 crores, with a net debt-to-EBITDA ratio of 0.56x. Cost of borrowing reduced to 6.9%, benefiting from T-bill rate corrections. The board declared an interim dividend of INR 4 per share. Dalmia Bharat also commissioned 93 megawatts of renewable energy capacity, aiming for 576 megawatts by the end of FY26.