DALBHARATNSEQ4 FY26May 01, 2026

Dalmia Bharat Limited

8,190words
151turns
19analyst exchanges
4executives
Management on call
Puneet Dalmia
MANAGING DIRECTOR AND
Dharmender Tuteja
CHIEF FINANCIAL
Yatin Malhotra
CHIEF FINANCIAL OFFICER
Prassan Goyal
LEAD, INVESTOR RELATIONS – DALMIA BHARAT LIMITED
Key numbers — 40 extracted
7%
ahead. As India grows, so does the cement sector. I expect the cement demand to grow at a CAGR of 7% to 8% in the medium term. -4! Dalmia Bharat LIMITED Let m
8%
As India grows, so does the cement sector. I expect the cement demand to grow at a CAGR of 7% to 8% in the medium term. -4! Dalmia Bharat LIMITED Let me now
50 million
pany overview. As you are all aware, we are the fourth-largest cement player in India with almost 50 million tons of cement capacity. In financial year 26, we delivered our best-ever EBITDA of Rs 3,083 cror
Rs 3,083 crore
st 50 million tons of cement capacity. In financial year 26, we delivered our best-ever EBITDA of Rs 3,083 crores and a PAT of Rs 1,157 crores. We have a diverse product offering catering to all consumer segmen
Rs 1,157 crore
capacity. In financial year 26, we delivered our best-ever EBITDA of Rs 3,083 crores and a PAT of Rs 1,157 crores. We have a diverse product offering catering to all consumer segments and are happy to share tha
2.7 billion
eserves. As can be seen, we have sufficient reserves across all our regions. In totality, we have 2.7 billion tons of limestone reserves at our operational plants. In addition to this, we have virgin mines
75 million
projects in South and West are progressing well. We are now working on new projects to reach the 75 million tons capacity milestone. We will share details of the same with all of you in the near future.
rs,
leading volume growth, backed up by strong value proposition for our channel partners and customers, is the key to higher capacity utilization. We have recently refreshed our brand identity and have
INR 2,500 crore
t operations and non-core line items. The key components of non-core line items are CWIP of about INR 2,500 crores, intangibles arising out of group restructuring of another about INR2,500 crores, and the rest i
INR2,500 crore
e CWIP of about INR 2,500 crores, intangibles arising out of group restructuring of another about INR2,500 crores, and the rest is largely treasury and investments, partially mitigated by deferred tax liabiliti
200 basis point
In financial year ‘26, we have been able to improve our ROCE from core cement assets by more than 200 basis points, going up from 9.9% to 12.1%. As more of our projects get commissioned, the CWIP value will keep
9.9%
een able to improve our ROCE from core cement assets by more than 200 basis points, going up from 9.9% to 12.1%. As more of our projects get commissioned, the CWIP value will keep getting converted in
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Guidance — 20 items
Puneet Dalmia
opening
“I expect the cement demand to grow at a CAGR of 7% to 8% in the medium term.”
Dharmender Tuteja
opening
“Civil work at Belgaum project is complete, while E&I work has started.”
Dharmender Tuteja
opening
“Ordering for all key equipment at Kadapa project is already done.”
Dharmender Tuteja
opening
“Things are now back on track, and we are confident that we will be able to commission this project somewhere between Q2 to Q3 of FY28.”
Dharmender Tuteja
opening
“Total cash outflow on account of project capex has been about INR 3,200 crores in the last two financial years.”
Dharmender Tuteja
opening
“With all projects picking up pace, we expect expansion linked cash outflow in FY27 to be in the range of INR2,200 crores, with a total capex outlook for FY27 being INR3,200 to INR3,400 crores.”
Dharmender Tuteja
opening
“Our PAT in FY26 was INR1,157 crores, which is a jump of 65% versus previous year.”
Dharmender Tuteja
opening
“We'll continue to drive the agenda of premiumization aggressively in FY27 as well.”
Dharmender Tuteja
opening
“Dalmia Bharat LIMITED At reported cost basis, our cost per ton since Q1 FY25 has come down by INR183 per ton, from INR3,973 to INR3,790.”
Dharmender Tuteja
opening
“On a full-year basis, FY26 adjusted cost is lower by at least INR100 versus FY25.”
Risks & concerns — 15 flagged
Having said that, we are taking various measures internally to mitigate the impact of rising costs to the maximum extent possible.
— Puneet Dalmia
We are optimistic that this positive momentum on prices will continue in the near term and could well mitigate the impact of the cost impact.
— Puneet Dalmia
Given the volatile environment, we will continue to focus on all big and small initiatives to keep power and fuel cost in check to the extent possible.
— Dharmender Tuteja
If we see on adjusted basis, that is, after removing impact of Tamil Nadu mineral cess and fuel prices, the fall is even steeper, that is INR211 per ton.
— Dharmender Tuteja
This decline is in line with the guidance we had given few years back.
— Dharmender Tuteja
So just firstly on the volumes, like this quarter you had some impact of the capacity, the kiln shutdown.
— Amit Murarka
Dalmia Bharat LIMITED Overall, if you were to see versus Q4 to Q1, we are expecting an impact of somewhere between INR125 to INR150 per ton.
— Yatin Malhotra
Right now, we are looking at a risk of 125 to 150 on the horizon, and we are in the process of mitigating those costs.
— Yatin Malhotra
But as of now, I think, the impact of cost has been passed on.
— Puneet Dalmia
So as of now, most of the companies are yet to announce their results, so it would be a little difficult to estimate that.
— Prassan Goyal
In cement, we have usually seen based on our past experience that even if there is a slowdown, it takes some time to feel the slowdown in the industry.
— Puneet Dalmia
Dalmia Bharat LIMITED So I think it's too early to decide whether there's a slowdown or not in April.
— Puneet Dalmia
Pricing aside, but is availability of some of these raw materials a concern now?
— Indrajit Agarwal
And without taking too much pressure on cost, at the same time ensuring regular supply.
— Yatin Malhotra
And hopefully we should be able to maintain it, and there should be no margin compression.
— Puneet Dalmia
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Q&A — 19 exchanges
Q
So just firstly on the volumes, like this quarter you had some impact of the capacity, the kiln shutdown. But generally speaking, also in the last couple of years, there has been continued market share loss. So what is the outlook that we can expect on volume and market share, let's say, in the coming couple of years?
Puneet Dalmia
I think as I've said earlier, we want to look at a profitable volume growth. This quarter we had a unexpected breakdown in East India and we lost some volume on account of that. But we have commissioned new lines in Northeast. And we are also going to commission our line in Belgaum this year. For all these new investments, our priority remains to increase capacity utilization as fast as possible. And I think we will continue to ensure that we are able to scale up the utilizations in the right context. And as I said, in some markets we have to improve the quality of sales, which we have been do
Q
Good evening. Am I audible?
Management
Q
Yes. Sir I wanted to ask, in the presentation you have mentioned the like-to-like cost, opex-led efficiencies, that's INR100 per ton which is achieved in FY '26. Is this reading, correct?
Yatin Malhotra
Sorry? This is cost reduction in FY '26 on the efficiency basis. You have achieved INR100 cost reduction, right? Yes, on an annualized basis, year-to-year, INR100 is the reduction that we have achieved. Yes, annual basis. And what more is expected or targeted for FY '27? So, actually we guided roughly I think eight quarters ago, on the path we are today. We have lived that journey as we have shown, if you were to look at Q4-to-Q4 on an adjusted basis, we are looking at INR125, INR130. As an organization, we are chasing cost reduction, I would say, on a continuous basis. Internally, we are targ
Q
Yes, Yes. Sure, thank you.
Management
Q
Hi, can you hear me? Yatin Malhotra Yes, please go ahead.
Satyadeep Jain
Hi. So, first question is on that 75 million tons that you mentioned. Can you maybe break it down to come in in the next two years? Can you talk about what options you're looking at, where are you in the ordering stage? I think we can't talk right now. You know, we'll share with you whenever, we are ready. I was just confirming that 75-million-ton target by the end of FY '28, right? Yes, we are pretty much chasing that. Puneet ji mentioned that, we could take a quarter here and there, take a few million here and there, but that is what we are chasing. -4! Dalmia Bharat LIMITED Okay. And sir, j
Q
Yes, good evening. Congrats for great numbers. My first question is on your clinker utilization. Can you give clinker utilization for the year and if clinker utilization in specific regions impacted volume growth for the quarter?
Yatin Malhotra
Prateek, we don't share the capacity utilization for clinker and that too region-wise. So we will not go there. I think we have made quite a lot of additional disclosures this time in our investor deck, but this is something that we would not. But I think we do share our CC ratio, so I think that can give you an indication of things. But is this not a factor which would have impacted your volume growth in peak quarter, which is this quarter? No, we've already said that in our slides that, there was about, an unexpected one-off breakdown, which has resulted in a 3% Y-o-Y growth lower. Prateek,
Q
Hi, sir. Sir, is it possible to quantify both trade, non-trade hike in your core operations of the regions in April?
Yatin Malhotra
I think it's a moving number, it's not that, one market, one price is stable. So but overall, as Puneet ji has mentioned, the price increases have happened, and we are looking at recovering more than the cost impact. That's the answer. Okay. And sir, given that now for the expansion Kadapa that previously we were looking at Q2 FY '28, that now we are saying it could be a Q3 FY '28 also. And at the same time, we are still not announced the next expansion to reach a 75 million ton, but still we are sticking to it. So what gives the confidence because that's the one thing which is not even if whe
Q
Yes, as I said, Kadapa might be a little delayed, Belgaum a little ahead of time. By and large, the story is intact. In the next 8 to 9 quarters, we are looking forward to reach somewhere between 72 to 75 million tons of capacity.
Shravan Shah
And sir, on the volume growth, I understand in last two years also just a 2% kind of a growth. Sir, is it possible to say that we are saying 7%-8% kind of a industry growth for couple of years? For us, for FY '27, '28, how one can look at? Will it be a still lower than the industry growth or at par or better than industry growth? We are aiming to deliver better than industry. -4! Dalmia Bharat LIMITED Okay. And the capex for FY '28 would be once we announce, a broader would be the last time we said '27, '28 put together would be a close to INR9,000-odd crores. So that way one can look at? I th
Q
Thank you for the opportunity. Sir, just wanted some sense of the breakup of the capex guidance for 2027. So roughly this INR3,200-odd crores, INR3,400-odd crores, if you could help me understand different projects, maintenance capex, any other capex such as renewables, that would be very helpful, sir? That's my first question?
Yatin Malhotra
So I think in the deck, Dharmender ji covered that INR3,200 crores to 3,400 crores is the overall guidance. Roughly INR2,200 to INR2,300 would be on account of the expansion projects under way. So I think balance is by and large our regular capex in plants, that's the way it is. And any further details we would rather avoid. I think our balance sheet should keep talking as and when we spend that capex. Okay. So basically the INR1,000 crores, which is over and above the projects announced, basically maybe we can split them half into maintenance capex and half into efficiency projects. Is that t
Q
Yes, namaskar sir. Hope I'm audible.
Yatin Malhotra
Yes, Saket. Yes, thank you, sir. Sir, firstly if you could give some color on the the capacity addition for the industry as a whole for the year ending March 26 and what is envisaged as the capacity addition for the current year? Which are in the pipeline, yes sir? Yes, Saket, Prassan here. So if I just broadly talk about the entire industry, I think the cement industry is adding somewhere around 160 to 170 Million ton
Q
Saket just to repeat again I am saying that for the industry as a whole. The cement industry expected to add somewhere around 160 tons to 170 million ton of capacity between 26 to 28. And out of that around 40-odd million ton has been commissioned in FY26 so far. So somewhere the balance of around 110 to 120-odd million ton of capacity is expected in the next 2 years.
Saket Kapoor
Correct, sir. And sir, in terms of the average utilization, if you could just give some color on how the utilization for the industry has been for year ending March 26? So as of now, most of the companies are yet to announce their results, so it would be a little difficult to estimate that. But if I just broadly say, we have seen as a trend, industry somewhere -4! Dalmia Bharat LIMITED operates between 65% to 70% of utilization and we believe that it will be of a similar ballpark number in this year as well. And sir, as you alluded in your presentation about the benefits that we have garnered
Q
Hi, hi sir. Thank you for the opportunity. I have one question, actually two questions. One, how has the demand trend been in April so far? I know it's too early, but given the price hikes across commodities, are you seeing any weakening of mainly IHB demand?
Puneet Dalmia
I think, demand in April seems to be holding up. In cement, we have usually seen based on our past experience that even if there is a slowdown, it takes some time to feel the slowdown in the industry. So it takes a little time to apply the brakes because the existing projects keep getting completed, the new projects could get deferred. And similarly, when the economy picks up, our acceleration may be time-lagged. -4! Dalmia Bharat LIMITED So I think it's too early to decide whether there's a slowdown or not in April. I think the effects in my view will get visible in probably a couple of quart
Q
Thank you. Thank you for the opportunity. The first question is that in the Slide number 11, we have mentioned that our limestone reserves is more than 48 years in the southern region. So sir, -4! Dalmia Bharat LIMITED as per public data, we have seen that Dalmia has been selected as the preferred bidder in multiple mines in Tamil Nadu in the month of February this year. So does this reserve include the reserves won recently?
Yatin Malhotra
Yes. Yes, Harsh. So what would be the quantum of the reserves which we have added, if you can share that data? Quantum? I don't have it offhand, Harsh. Maybe we can share with you separately. Okay, okay. Second question, sir. Our cement and clinker, there is a mismatch in the particularly in the Northeast region. So do we expect any grinding capacity addition in the Northeast region as part of your 72 million to 75 million ton plan? Yes, Harsh. I think you can expect that. But let's wait for more announcement. But yes, you are right, and we might be looking at a grinding capacity in the region
Q
Hi, sir. Two questions. One, if I am I audible?
Dharmender Tuteja
Yes, please.
Q
Yes. So, if I look at the change in the fixed asset on the annual basis, I see a number of much higher number of around INR3,500 crores, whereas in the capex outflow has been close to INR2,000 crores for the full year. Could you reconcile why there is a sharp difference of INR1,500 crores between the two numbers?
Yatin Malhotra
Rajesh, I think there is one more line item that you need to look at, see other financial liabilities. A lot of CWIP that we have incurred during the year is still standing as payable in our books, and that is actually one reason that, you know, the guidance we gave earlier in terms of the cash outflow on capex, which is much lower in this quarter. And, you know, as we were, you know, we all know towards the end of Feb, you know, this entire geopolitical situation started. So I think we have just deferred our cash flows a bit, and that is sitting in our liabilities and that should get sorted i
Q
Am I audible now?
Management
Q
Yes, sorry, I was on mute. Yes. So I have only one question, and most of the questions have been answered. So sir, you mentioned we have took a price hike in April which all the cost has been passed on. So if you can quantify what is the total price hike we have took in April so far?
Dharmender Tuteja
We are still in the middle of April. I think we've already said that, you know, so far we've been able to pass on the cost increase through price hikes. And hopefully we should be able to maintain it, and there should be no margin compression. So that's the most broad answer. Okay, okay. Sir, understood, understood. Okay. Thank you.
Q
Hi. Sir, our CC ratio, if I look at last two years, almost it has declined from 1.7 to now 1.6. So any specific reason and will it remain here or we will try to increase?
Puneet Dalmia
I think again, it's a dynamic situation. We will take a call market to market. But our long-term goal is to increase the CC ratio and, you know, decrease our cost. So quarter on quarter, I don't think we can look at this. This has to be looked over a three to five years period, and our endeavour will be to improve it over a medium term. Yes, because I look at for last two years, so in two years it has from FY24 till FY26 in almost three years it has declined. That's what I asked. I am not looking at on a Q-on-Q. No issues. Last sir, incentive for FY27 in terms of booking would be around INR200
Q
Thank you. I think we've had a, you know, very good year in terms of profitability and a close quarter also. We've done the highest-ever EBITDA over INR900 crores this quarter, and we've topped INR3,000 crores for the first time. Our capex is ongoing. We are, you know, very optimistic about the future of the Indian economy, and we will continue to invest behind the growth in India. There will be headwinds along the way, and I've always said that this is not a straight road to paradise. There will be bumps along the way. We will navigate those bumps as we've shown resilience over the last 80 ye
Management
Speaking time
Yatin Malhotra
38
Moderator
21
Rajesh Ravi
18
Puneet Dalmia
11
Dharmender Tuteja
10
Shravan Shah
9
Saket Kapoor
7
Indrajit Agarwal
7
Satyadeep Jain
5
Siddharth Mehrotra
5
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Opening remarks
Prassan Goyal
Good evening, everyone. We are happy to welcome all of you to the FY26 annual results investor call. As you would have taken a note of our vision, this time we have made a change in the way we are holding our investor call. The purpose of this change is to present our investor deck during the call and share our perspectives and insights in an endeavour to make the overall interaction richer. Looking forward to a robust session. Handing over to Puneet sir to take this forward. Thank you.
Puneet Dalmia
Thanks, Prassan, and good evening, everyone. I'm happy to be back with all of you. Let me start with some thoughts about the Indian economy. As we all know, the India growth story remains strong, and we continue to be one of the fastest-growing major economies in the world, marching forward to become the third-largest economy in a few years. During the year, India's macroeconomic fundamentals have demonstrated confidence, driven by robust consumption and investment demand. At the same time, supportive fiscal deficit and robust forex reserves put India on a strong footing to navigate through any of the geopolitical or geo-economic headwinds. As India progresses to become a $5 trillion economy by 2028 and achieve the vision of Viksit Bharat by 2047, we will need substantial investments in infrastructure, and we are already beginning to see strong traction on this front. From industrial corridors and affordable housing to high-speed rail and smart cities, progress is visible across the co
Dharmender Tuteja
Thank you, Puneet ji. Good evening, everyone. Please pardon me for my sore throat today. Just to re-emphasize what Puneet ji just mentioned, delivering high returns on capital employed is a key strategic priority for us, and we are addressing this on multiple fronts. Delivering industry- leading volume growth, backed up by strong value proposition for our channel partners and customers, is the key to higher capacity utilization. We have recently refreshed our brand identity and have adopted a new logo, keeping pace with the New Bharat of today and tomorrow. We are doubling down on our efforts towards premiumization at both product and price level. Various initiatives are being taken for better channel engagement and offering reliable delivery to our partners. We have also made positive strides on our cost leadership. In this quarter, we delivered the lowest quarterly total cost per ton in the last five years, which demonstrates our unwavering commitment to be one of the lowest-cost pro
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