Dalmia Bharat Limited is the fourth-largest cement manufacturer in India, with a significant operational history dating back to 1939. The company has grown from a single 250 TPD plant in Tamil Nadu to a pan-Indian entity with a cement capacity of 49.5 million tons per annum (MnTPA) and a clinker capacity of 27.1 MnTPA as of December 2025. With a market capitalization of ₹40,109 Crore, the company operates 15 manufacturing plants and serves 23 states through a robust network of over 46,600 channel partners.

The company's growth has been achieved through a combination of organic expansion, including the commissioning of Greenfield integrated units, and strategic acquisitions that have enabled its entry into key markets in the North East, East, and West regions. Dalmia Bharat has a strong geographical presence, with the majority of its capacity concentrated in the East (21.6 MnT) and South (17.0 MnT), complemented by a significant footprint in the North East (8.0 MnT). The company is also distinguished by its commitment to sustainability, holding one of the lowest carbon footprints globally in the cement industry and aggressively expanding its renewable energy portfolio, which currently stands at 410 MW. This focus on green energy, combined with a diverse product range and a stated goal of reaching 110-130 MnT capacity by 2031, positions Dalmia Bharat as a key player in India's infrastructure growth story.

Official Website: http://www.dalmiabharat.com/

• Revenue Performance:

• For Q3 FY26, Revenue from Operations stood at ₹3,506 Cr, marking a 10% year-over-year (YoY) increase from ₹3,181 Cr in Q3 FY25. Sequentially, revenue grew by 3% from Q2 FY26.

• For the nine months (9M) of FY26, revenue was ₹10,559 Cr, a 7% increase over ₹9,889 Cr in 9M FY25.

• The revenue growth was primarily driven by a 10% YoY increase in sales volume during the quarter.

• Profitability and Earnings:

• EBITDA for Q3 FY26 was ₹602 Cr, a significant 18% improvement from ₹511 Cr in Q3 FY25. However, it declined sequentially from ₹696 Cr in Q2 FY26, impacted by a reduction in prices.

• Profit After Tax (PAT) for Q3 FY26 was ₹128 Cr, a 94% YoY increase from ₹66 Cr.

• For 9M FY26, EBITDA reached ₹2,181 Cr, up 35% from ₹1,614 Cr in the prior year period. PAT for the same period was ₹762 Cr, a nearly threefold increase from ₹260 Cr.

• Earnings Per Share (EPS) for Q3 FY26 was ₹6.5, compared to ₹3.3 in Q3 FY25. The 9M FY26 EPS stood at ₹40.0.

• Per Ton Metrics:

• Net Sales Realization (NSR) per ton in Q3 FY26 improved by 1% YoY to ₹4,794 but saw a 4% sequential decline.

• EBITDA per ton was ₹823 in Q3 FY26, up from ₹765 in Q3 FY25, indicating improved operational efficiency and cost management.

• Balance Sheet Strength:

• As of Q3 FY26, Gross Debt was ₹6,844 Cr and Net Debt was ₹5,457 Cr.

• The Net Debt to EBITDA ratio stood at a healthy 0.60x, well below the company's internal threshold of 2.0x, providing substantial headroom for future capital expenditure.

The company demonstrated strong YoY growth in revenue and profitability, driven by higher volumes, though sequential performance was moderated by price reductions. The balance sheet remains robust with a low leverage ratio, supporting future expansion plans.

• Sustainability Leadership:

• Dalmia Bharat is a global leader in sustainability within the cement sector, aspiring to be Net Carbon Negative by 2040.

• The company reported a Net CO2 emission of 479 kg/ton of cementitious material in Q3 FY26, which is among the lowest globally.

• There is a strong and demonstrated commitment to renewable power, with total RE capacity reaching 410 MW by December 2025, a 34x increase since FY20. The company aims to reach 576 MW by June 2026.

• Disciplined Capital Allocation:

• The company is noted as the first in the cement industry to formally announce a Capital Allocation Framework and Treasury Policy.

• This framework emphasizes maintaining a strong balance sheet, with a Net Debt to EBITDA ratio threshold of 2.0x, ensuring financial prudence while pursuing growth.

• Operational Efficiency Focus:

• The company maintains a high clinker-to-cement (CC) ratio of 1.6x and a blended cement share of 80% (Q3 FY26), which are key levers for reducing carbon emissions and production costs.

• Logistics costs have been actively managed, showing a 6% YoY reduction per ton in Q3 FY26, driven by an increasing share of direct dispatches (62%).

Dalmia Bharat differentiates itself through a deep-rooted commitment to sustainability, disciplined financial management, and a continuous focus on operational efficiencies. This combination provides a unique value proposition in a commodity-driven industry.

• Macroeconomic Environment:

• The Indian economy shows sustained activity, with the FY26 GDP growth forecast revised upward to 7.3%.

• GST collections increased 1.4% YoY in Q3, indicating economic resilience.

• While the manufacturing PMI has moderated, it remains above the 50-mark expansionary threshold. Declining CPI inflation is expected to increase household purchasing power.

• Cement Sector Dynamics:

• Cement demand in India is projected to grow by approximately 6% YoY in FY26.

• Q3 FY26 is expected to see stronger demand growth of 7-8% YoY, driven by post-monsoon recovery and an early festival season.

• Key Demand Drivers:

• Government Capex: Central government capital expenditure has grown at a 21% CAGR over the last five years, providing a strong impetus for infrastructure-led cement demand.

• Real Estate: The housing market remains robust, with low channel inventory and sustained demand expected to drive an increase in new project launches.

• Affordable Housing: The Pradhan Mantri Awas Yojana (PMAY) scheme continues to be a significant driver. 41% of PMAY-Gramin and 56% of PMAY-Urban targets are yet to be completed, signaling a strong pipeline of demand for the coming years.

The outlook for the cement industry remains positive, underpinned by strong macroeconomic fundamentals and sustained demand from government infrastructure spending and the real estate sector. These favorable conditions provide a supportive environment for volume growth.

• Historical Volume Growth:

• Sales volume in Q3 FY26 reached 7.3 million tons, a 10% YoY increase from 6.7 million tons in Q3 FY25. This growth outpaced the broader industry's demand growth.

• For 9M FY26, sales volume was 21.2 million tons, a 2% increase over the previous year.

• Strategic Growth Ambition:

• The company has a clear long-term vision to grow its capacity to 110-130 MnTPA by 2031.

• An intermittent milestone has been set to reach a capacity of 75 MnTPA by FY28, demonstrating a structured and phased approach to expansion.

• Market Share and Product Mix:

• The company aims for a significant presence in every market where it operates.

• The share of premium products in the trade segment remained steady at 23% in Q3 FY26, indicating a stable position in the high-value segment.

The company has demonstrated above-market volume growth in the recent quarter and has laid out an ambitious, long-term capacity expansion plan to solidify its position as a leading pan-India player. This strategy is geared towards capturing a larger share of the growing national demand.

• Geographical Expansion:

• Planned grinding units in Belgaum and Pune are strategically positioned to improve penetration into the Southern and Western Maharashtra markets, which are currently untapped by the company.

• The upcoming Kadapa unit and a 3 MnTPA bulk terminal in Chennai will strengthen the company's presence in Andhra Pradesh, Southern Karnataka, and Northern Tamil Nadu.

• Capitalizing on Infrastructure Push:

• The consistent and high-growth trajectory of government capital expenditure on infrastructure presents a direct and sustained demand opportunity for the cement industry. Dalmia Bharat is well-positioned to benefit from this trend.

• Housing Demand:

• The combination of ongoing momentum in the PMAY scheme and sustained demand in the private real estate sector provides a dual engine for housing-related cement consumption.

The company is strategically expanding its geographical footprint to capitalize on untapped regional markets while benefiting from strong, nationwide demand drivers in infrastructure and housing. These opportunities align well with its planned capacity expansions.

• Current Capacity:

• As of December 2025, the company's total installed cement capacity is 49.5 MnTPA, with a clinker capacity of 27.1 MnTPA.

• Capacity Utilization:

• In Q3 FY26, the company sold 7.3 million tons of cement.

• Based on an annual capacity of 49.5 MnTPA, the quarterly capacity is approximately 12.38 million tons. This implies a capacity utilization of approximately 59% for the quarter.

• Capital Expenditure and Expansion Projects:

• Recently Commissioned: Commercial production commenced from the 3.6 MnTPA clinker line in Umrangso, Assam, on January 20, 2026. This project also includes a 15 MW Waste Heat Recovery System (WHRS).

• Ongoing Projects: Civil work for the Belgaum expansion is 86% complete. All major orders have been placed for the expansions at Belgaum, Pune, and Kadapa.

• Planned Additions: The company plans to add 12.0 MnTPA of cement capacity and 7.2 MnTPA of clinker capacity by Q2 FY28. This includes:

• FY27: 3.0 MnTPA cement and 3.6 MnTPA clinker capacity in Belgaum, KA.

• Q2 FY28: 6.0 MnTPA cement and 3.6 MnTPA clinker capacity in Kadapa, AP, and 3.0 MnTPA cement capacity in Pune, MH.

The company is actively executing a significant capex cycle to increase its capacity by over 24% by FY28, with multiple projects progressing as planned. Current capacity utilization suggests ample room to grow volumes as new capacities come online.

• Pan-India Presence: The core strategic direction is to establish Dalmia Bharat as a pan-India pure-play cement company with a significant presence in all its operating markets.

• Long-Term Capacity Target: The company is committed to its long-term vision of expanding capacity to 110-130 MnTPA by 2031, with a medium-term goal of 75 MnTPA by FY28.

• Financial Prudence: A key pillar of the future strategy is to maintain a strong balance sheet and adhere to the highest standards of corporate governance, guided by its formal Capital Allocation Framework.

• Organizational Culture: The company plans to continue building a strong organizational culture and value system, supported by a seasoned executive committee and a reputed board of directors.

The company's future is guided by a clear and ambitious strategy focused on aggressive capacity expansion, deepening its national footprint, and maintaining strict financial discipline. This plan is designed to transform Dalmia Bharat into a much larger and more influential player in the Indian cement industry.

• EBITDA Performance:

• EBITDA per ton improved YoY to ₹823 in Q3 FY26 from ₹765 in Q3 FY25. This improvement was driven by higher volumes and effective cost management.

• However, EBITDA per ton declined sequentially from ₹1,013 in Q2 FY26, primarily due to lower cement prices during the quarter.

• Cost Structure Analysis:

• Total Cost: The total reported cost per ton remained relatively flat over the past several quarters, standing at ₹3,971/T in Q3 FY26. Adjusted for one-time impacts, the cost trend shows a decline, reflecting efficiency gains.

• Raw Material Cost: Increased by 2% YoY to ₹780/T, partly due to an additional mineral tax levy in Tamil Nadu.

• Power & Fuel Cost: Marginally increased by 1% YoY to ₹1,019/T. The company is mitigating fuel cost volatility by increasing its share of renewable energy, which reached 48% in Q3 FY26.

• Logistics Cost: Decreased by a notable 6% YoY to ₹1,057/T, showcasing the success of initiatives aimed at optimizing freight and distribution networks.

Margins showed YoY improvement due to volume leverage and cost control, particularly in logistics, but were impacted sequentially by pricing pressures. The company's focus on operational efficiency and increasing its share of green power are key levers for protecting and enhancing future profitability.

• Project Commissioning:

• A significant operational milestone was achieved with the commencement of commercial production from the new 3.6 MnTPA clinker line at Umrangso, Assam, on January 20, 2026. This strengthens the company's clinker sufficiency in the North East region.

• Marketing Initiatives:

• To enhance brand visibility and dealer engagement, the company undertook several high-profile marketing initiatives during the quarter.

• These included sponsoring the "Messi India G.O.A.T. Tour 2025" and hosting the annual dealer conference, "NAMAN 2025."

• Leadership and Governance:

• The company is led by a reputed board of independent and non-independent directors with extensive experience in industry and finance.

• The executive committee is composed of seasoned professionals with deep expertise across functions like manufacturing, finance, marketing, and strategy.

• Awards and Recognition:

• The company continues to receive accolades for its performance in sustainability, safety, and operational excellence.

• Recent awards include recognition for Occupational Health and Safety, Excellence in Productivity, Energy Efficiency, CSR, and Environmental Excellence from various industry bodies.

• ESG ratings from agencies like MSCI (63) and Sustainalytics (57) underscore its strong standing in corporate governance and sustainability practices.

The company has achieved a critical operational milestone with its new clinker line and continues to invest in brand building, backed by a strong leadership team and consistent industry recognition for its ESG and operational performance. These updates reflect solid execution and a commitment to all-around excellence.