Dalmia Bharat posts robust financials, strategic growth in Q2 FY26

Dalmia Bharat Limited reported a strong financial performance for Q2 FY26, with sales volume growing 3% year-over-year. The company achieved an EBITDA of ₹1,013 per ton, marking its second consecutive quarter of four-digit EBITDA per ton. Net sales for the quarter stood at ₹4,973 per ton, contributing to a total EBITDA of ₹696 crore. The net debt to EBITDA ratio improved to 0.56x as of September 30, 2025, underscoring a robust balance sheet.

The company is on track with its capacity expansion plan, targeting 75 MnT cement capacity by FY28, up from 49.5 MnT in FY25. Significant projects include 3.0 MnT expansions in Pune, MH, and Belgaum, KA, and a 6.0 MnT expansion in Kadapa, AP. Clinker capacity is projected to reach 34.3 MnT by Q2 FY28. Sustainability efforts are also noteworthy, with renewable energy increasing to 48.1% of operational capacity, reaching 387 MW.

Dalmia Bharat also emphasized its cost leadership, driven by long-term raw material supplier tie-ups, investments in green power projects, and higher usage of blended cement. The company aims to achieve a cost efficiency gain of ₹150-200 per ton by FY27. Its commitment to good governance is reflected in a multi-tier structure and a formal capital allocation framework, targeting a Net Debt/EBITDA below 2.0x and an ROCE of 14-15%.