DALBHARAT - Dalmia BharatLtd
📢 Recent Corporate Announcements
The PMLA Appellate Tribunal has significantly reduced the alleged Proceeds of Crime (PoC) against Dalmia Bharat's material subsidiary, DCBL, from Rs 793.34 Cr to Rs 92.52 Cr. This ruling follows an appeal against a 2025 Enforcement Directorate order that had provisionally attached various land parcels belonging to the company. The reduction of approximately Rs 700 Cr in alleged liabilities allows the company to seek the release of the majority of its attached land assets. While the company intends to contest the remaining Rs 92.52 Cr, this development substantially mitigates a major legal and financial risk for the group.
- PMLA Tribunal reduced the alleged Proceeds of Crime from Rs 793.34 Cr to Rs 92.52 Cr
- The order provides a substantial relief of approximately Rs 700 Cr in potential asset attachments
- Subsidiary DCBL will apply to the Enforcement Directorate for the release of attached land parcels
- Company plans to pursue further legal remedies to contest the remaining Rs 92.52 Cr liability
- The original attachment order dates back to March 31, 2025, involving land parcels in Hyderabad
Dalmia Bharat Limited has announced its participation in three major investor conferences in Mumbai during February 2026. The management will attend Axis Capital's Flagship India Conference on Feb 11, followed by IIFL's 17th Enterprising India Global Investors' Conference on Feb 24. The schedule concludes with Kotak’s Chasing Growth 2026 conference on Feb 25. These meetings are intended for one-on-one and group interactions with institutional investors to discuss business trends without sharing unpublished price-sensitive information.
- Three major conferences scheduled: Feb 11 (Axis Capital), Feb 24 (IIFL), and Feb 25 (Kotak)
- All meetings are physical sessions located in Mumbai
- Interaction formats include both one-on-one and group discussions
- Company confirms no Unpublished Price Sensitive Information (UPSI) will be shared
Dalmia Bharat Limited has re-submitted its unaudited financial results for the quarter and nine months ended December 31, 2025, to ensure the document is fully legible and machine-readable as per SEBI requirements. The submission includes an auditor's report highlighting several ongoing legal matters, including a dispute with the Bawri Group and a fraudulent mutual fund transfer case involving Allied Financial Services. Additionally, the company is appealing a provisional attachment order by the Enforcement Directorate (ED) regarding certain land parcels. Management currently anticipates no material financial adjustments will be required for these matters.
- Re-submission of Q3 FY26 results to correct legibility issues in the original January 21, 2026 filing.
- Auditor highlights a dispute with Bawri Group where the Delhi High Court set aside certain awards in October 2022.
- Ongoing legal recovery efforts for mutual fund units involving a Rs. 100 crore bank guarantee and Rs. 300 crore corporate guarantee.
- Appeal filed on October 13, 2025, against an ED provisional attachment order of certain land parcels confirmed in September 2025.
- Consolidated results for the nine-month period ended December 31, 2025, were reviewed by Walker Chandiok & Co LLP.
Dalmia Bharat reported a robust 10% YoY volume growth reaching 7.3 million tons in Q3 FY26, supported by strong demand in the Northeast and East regions. While absolute EBITDA rose 18% YoY to Rs 602 crore, Net Sales Realization (NSR) saw a 4% sequential decline due to pricing pressure in core markets. The company successfully commissioned a 3.6 MTPA clinker line in Assam, supporting its aggressive expansion target of 75 MTPA by FY28. Despite cost headwinds like mineral taxes in Tamil Nadu, the company maintained a strong balance sheet with a low net debt to EBITDA ratio of 0.6x.
- Sales volume grew 10% YoY to 7.3 million tons with premium products accounting for 23% of the mix
- EBITDA per ton stood at Rs 823, contributing to an 18% YoY improvement in absolute EBITDA to Rs 602 crore
- Commissioned 3.6 MTPA clinker capacity in Umrangso, Assam, to fully back 8 MTPA cement capacity in the region
- Logistics costs declined 5.6% YoY driven by a 62% direct dispatch rate and optimized lead distances
- Net debt remains manageable at Rs 1,793 crore with a comfortable Net Debt/EBITDA ratio of 0.6x
Dalmia Bharat reported a strong Q3 FY26 performance with a 93.9% YoY jump in Net Profit to Rs 128 Cr, driven by robust volume growth and operational efficiencies. Revenue grew 10.2% to Rs 3,506 Cr, while EBITDA increased 18% to Rs 602 Cr. The company successfully commissioned a 3.6 MnTPA clinker line in Assam, strengthening its North East presence. With a healthy Net Debt to EBITDA ratio of 0.60x and increasing renewable energy share at 48%, the company remains well-positioned for sustainable growth.
- Net Profit (PAT) grew by 93.9% YoY to Rs 128 Cr in Q3 FY26
- Sales volume increased 9.5% YoY to 7.3 MnT, while EBITDA per tonne rose 7.6% to Rs 823
- Commenced commercial production of a 3.6 MnTPA clinker line at Umrangso, Assam on Jan 20, 2026
- Renewable energy capacity reached 410 MW, now accounting for 48% of power consumption
- Net Debt to EBITDA remains comfortable at 0.60x as of December 31, 2025
Dalmia Bharat reported a robust Q3 FY26 with revenue increasing 10% YoY to ₹3,506 Cr, driven by a 10% growth in sales volume to 7.3 MnT. Net Profit (PAT) nearly doubled YoY to ₹128 Cr, supported by improved EBITDA per ton which rose to ₹823 from ₹765 in the previous year. The company successfully commissioned a 3.6 MnTPA clinker line in Assam in January 2026, marking progress toward its FY28 capacity target of 75 MnT. Despite a sequential dip in EBITDA due to pricing pressure, the company maintains a healthy net debt to EBITDA ratio of 0.60x.
- Sales volume increased 10% YoY to 7.3 MnT, outperforming the estimated industry growth of 7-8%.
- Revenue from operations grew 10% YoY to ₹3,506 Cr, while 9M FY26 revenue reached ₹10,559 Cr.
- EBITDA per ton improved to ₹823 from ₹765 YoY, though it declined from ₹1,013 in Q2 FY26 due to lower realizations.
- Commenced commercial production of a 3.6 MnTPA clinker line at Umrangso, Assam on January 20, 2026.
- Renewable energy share reached 48% in Q3 FY26, with total RE capacity standing at 410 MW.
Dalmia Bharat Limited has officially approved its unaudited financial results for the quarter and nine-month period ending December 31, 2025. The Board meeting took place on January 21, 2026, concluding within an hour of commencement. The filing includes both standalone and consolidated financial statements along with the statutory auditor's limited review report. Investors should now analyze the detailed profit and loss statements to assess the company's operational efficiency and market share in the cement industry.
- Board approval of standalone and consolidated financial results for Q3 FY26.
- The meeting was held on January 21, 2026, between 01:40 P.M. and 02:30 P.M.
- Financials were reviewed and recommended by the Audit Committee prior to Board approval.
- Limited Review Reports from Statutory Auditors were submitted in compliance with SEBI Regulation 33.
Dalmia Bharat's subsidiary, Dalmia Cement (North East) Limited, has successfully commenced commercial production at its new 3.6 MTPA clinkerisation unit in Umrangso, Assam. This addition significantly boosts the Group's total clinker manufacturing capacity to 27.1 MTPA. The company's total cement grinding capacity currently stands at 49.5 MTPA. This expansion is a key step in strengthening the company's market position in the North Eastern region of India.
- Commencement of 3.6 MTPA clinkerisation capacity at Umrangso, Assam
- Total Group clinker manufacturing capacity increased to 27.1 MTPA
- Total Group cement grinding capacity maintained at 49.5 MTPA
- Project executed through subsidiary Dalmia Cement (North East) Limited
ICRA ESG Ratings Limited has reaffirmed Dalmia Bharat's ESG Combined Rating at 80, categorized as 'Exceptional.' This rating is a composite of an ESG Impact Rating of 74 (Good) and an ESG Transition Rating of 85 (Accelerating). The company maintained its scores across key pillars, with governance transition scoring a near-perfect 99. This reaffirmation underscores the company's commitment to sustainable practices and robust corporate governance, which is critical for institutional investor interest.
- Reaffirmed [ICRA ESG] Combined Rating of 80, classified as 'Exceptional'
- ESG Impact Rating stands at 74 (Good), with a strong Governance Impact score of 83
- ESG Transition Rating is 85 (Accelerating), highlighted by a Governance Transition score of 99
- Environment Transition score remains high at 90, reflecting strong decarbonization efforts
Dalmia Bharat's subsidiary, Dalmia Cement (Bharat) Limited, has completed the disposal of its entire 25.44% stake in O2 Renewable Energy V Private Limited (OREV). The transaction was finalized for a total consideration of Rs 10.82 crore, with the stake being sold to third parties including JSW Neo Energy and Goldman Sachs Services. The associate company was originally part of a captive wind power arrangement but did not contribute to Dalmia Bharat's consolidated revenue or net worth in the previous financial year.
- Sold entire 25.44% equity stake in associate company O2 Renewable Energy V for Rs 10.82 crore.
- Buyers include JSW Neo Energy (12.23%), Goldman Sachs Services (4.99%), and Syngene International (8.23%).
- The associate company had no impact on the consolidated turnover or net worth of Dalmia Bharat in the last FY.
- The disposal marks an exit from an 11 MW captive wind power sourcing arrangement in Karnataka.
Dalmia Bharat Limited has announced a minor scheduling change for its upcoming group conference call with investors and analysts. Originally scheduled for 05:00 P.M. IST on Wednesday, January 21, 2026, the call will now commence 30 minutes earlier at 04:30 P.M. IST. This update follows the company's initial intimation provided on January 13, 2026. The meeting is conducted in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- Conference call date remains unchanged on Wednesday, January 21, 2026
- Revised start time is 04:30 P.M. IST, moved up from the earlier 05:00 P.M. IST
- The notification was issued to exchanges on January 16, 2026
- The call is a group conference for analysts and institutional investors
Dalmia Bharat's subsidiary, Dalmia Cement (Bharat) Limited, has completed the acquisition of a 26% equity stake in TrueRE Surya Private Limited for Rs 42.87 crore. This strategic investment is aimed at sourcing up to 128 MW of solar power as a captive consumer for its operations in Tamil Nadu. The move is part of the company's broader commitment to achieve RE 100 by 2030 and become carbon negative by 2040. The transaction was completed via cash consideration on January 14, 2026.
- Acquired 2,62,60,337 equity shares representing a 26% stake in TrueRE Surya Private Limited.
- Total cash consideration for the equity investment stands at Rs 42.87 crore.
- Secures captive solar power capacity of up to 128 MW in the state of Tamil Nadu.
- Strategic alignment with the group's goal to reach RE 100 by 2030 and carbon negative status by 2040.
- TrueRE Surya is a Special Purpose Vehicle (SPV) incorporated in April 2024 specifically for solar power projects.
Dalmia Bharat Limited has scheduled a conference call for investors and analysts on Wednesday, January 21, 2026, at 05:00 P.M. IST. The call will focus on the company's unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. This is a routine regulatory filing following SEBI's disclosure requirements. Investors will be looking for management commentary on cement demand, pricing trends, and the progress of ongoing capacity expansion projects.
- Conference call scheduled for January 21, 2026, at 5:00 PM IST.
- Focus on financial results for the quarter and nine months ended December 31, 2025.
- Covers both Standalone and Consolidated financial performance.
- Compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Dalmia Bharat Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by the company's Registrar and Transfer Agent (RTA), KFin Technologies Limited, confirms the processing of dematerialization and rematerialization requests for the quarter ended December 31, 2025. This filing ensures that the company is in compliance with depository regulations regarding the conversion of physical shares to electronic form. Such filings are standard procedural requirements for all listed entities in India.
- Compliance certificate submitted for the quarter ended December 31, 2025
- Issued by Registrar and Transfer Agent (RTA) KFin Technologies Limited
- Confirms adherence to Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018
- Details of dematerialized/rematerialized securities furnished to BSE and NSE
Dalmia Cement (Bharat) Limited, a wholly-owned subsidiary of Dalmia Bharat, has received a tax order from the CGST authority in Jharkhand. The order pertains to the disallowance of Input Tax Credit (ITC) for the financial years 2018-19 to 2022-23. The total demand includes a tax component of Rs 11.16 lakhs plus interest and a penalty of Rs 14.07 lakhs. The company has stated that it has strong grounds to contest the order and will be filing an appeal with the Appellate Authority.
- Tax demand of Rs 11,15,812 along with applicable interest imposed on subsidiary DCBL.
- Penalty of Rs 14,06,739 levied by the Superintendent of CGST & CX, Bokaro, Jharkhand.
- Dispute relates to Input Tax Credit (ITC) disallowance for the period FY 2018-19 to FY 2022-23.
- Company confirms no major financial impact on operations and plans to appeal the order.
Financial Performance
Revenue Growth by Segment
Consolidated revenue from operations reached INR 13,980 Cr in FY25, marking a de-growth of 4.8% compared to INR 14,691 Cr in FY24. Standalone revenue, primarily from management services, grew 55.39% to INR 202 Cr from INR 130 Cr. The consolidated decline was driven by a 4.3% drop in realization despite a 2% increase in sales volume to 29.4 MnT.
Geographic Revenue Split
The group derives the majority of its volumes from the East and North-Eastern markets. It has recently become the largest player in the Northeast after commissioning 2.9 MTPA grinding capacity. It is also expanding into the Central region to diversify its geographic footprint and absorb incremental capacity.
Profitability Margins
Net Profit After Tax (PAT) for FY25 was INR 699 Cr, an 18.1% decline from INR 853 Cr in FY24. PAT margin compressed from 6% to 5%. Profit Before Tax (PBT) fell 23.6% to INR 817 Cr from INR 1,070 Cr, impacted by a INR 113 Cr exceptional charge related to Jaiprakash Associates Limited (JAL).
EBITDA Margin
Operating EBITDA stood at INR 2,407 Cr in FY25, a 9% decrease from INR 2,639 Cr in FY24. EBITDA margin declined from 18% to 17%. However, Q2 FY26 showed recovery with EBITDA/T reaching INR 1,013/T, maintaining a four-digit EBITDA per tonne for two consecutive quarters.
Capital Expenditure
The group is undertaking significant debt-funded capex of INR 4,000 Cr to INR 4,500 Cr annually. Key projects include a 3.6 MTPA clinker unit in Assam (commercial production Q3 FY26) and civil works at Belgaum which are 52% complete, aimed at reaching a 75 MTPA capacity by FY28.
Credit Rating & Borrowing
CRISIL maintains a strong rating based on a healthy financial risk profile. Net debt to EBITDA increased to 1.24x in FY25 from 0.86x in FY24 due to capex, but improved to 0.56x by Q2 FY26. Adjusted gearing rose marginally to 0.31x from 0.28x. Interest coverage ratio remains healthy at 6.67x.
Operational Drivers
Raw Materials
Key raw materials include limestone and clinker. Raw material costs stood at INR 2,241 Cr in FY25, representing 16% of revenue and increasing 6% YoY. Costs were impacted by a new mineral tax imposed by the Tamil Nadu government, raising raw material cost per ton to INR 799.
Import Sources
Limestone is sourced from captive mines and regional deposits in Tamil Nadu, Assam, and other operating states. The group is expanding clinker capacity by 3.6 MTPA in Umrangso, Assam to reduce dependency on external clinker transfers.
Key Suppliers
Not specifically disclosed in available documents, though the company manages a vast network of vendors for power, fuel, and logistics.
Capacity Expansion
Current installed capacity is 49.5 MnTPA across 15 plants. The company plans to expand to 75 MnTPA by FY28 and has a long-term target of 110-130 MnTPA by 2031. This includes a 3.6 MTPA clinker expansion in Assam and new grinding units in the Northeast.
Raw Material Costs
Raw material costs increased 6% to INR 2,241 Cr in FY25. The company uses an integrated model to mitigate costs, though regional taxes (like the TN mineral tax) added a 1% YoY increase to production costs per ton.
Manufacturing Efficiency
The company focuses on cost leadership through a 10-year strategy that has seen EBITDA grow at a 15% CAGR. Efficiency is driven by increasing the share of premium products (22% of sales) and trade sales (62% of sales).
Logistics & Distribution
Freight charges on finished goods were INR 2,785 Cr (19.9% of revenue). Total freight cost per ton increased 1% from INR 1,113/T to INR 1,120/T in FY25 due to higher volumes and clinker transfer costs.
Strategic Growth
Expected Growth Rate
15%
Growth Strategy
The company aims to reach 75 MTPA by FY28 through a mix of organic expansions (Assam, Belgaum, Kadapa) and potential inorganic growth (JP transaction). It targets 110-130 MTPA by 2031 by penetrating the Central region and deepening its presence in the high-growth Northeast market, supported by a 15% historical CAGR in volume and revenue.
Products & Services
The company sells cement bags, clinker, and premium cement variants. It also provides management services through its standalone entity.
Brand Portfolio
Dalmia Bharat, Dalmia Cement, and various premium product brands (22% share of sales).
New Products/Services
The company is focusing on 'Premium Products' which now account for 22% of total sales volume, intended to improve overall realization and brand equity.
Market Expansion
Expansion is focused on the Northeast (largest player status) and entering the Central region. Trial runs for the Assam clinker unit are expected in September 2025, with commercial production in Q3 FY26.
Market Share & Ranking
Dalmia Bharat is currently the 4th largest cement player in India, having doubled its capacity from 24 MnTPA in FY15 to 49.5 MnTPA currently.
Strategic Alliances
The company is involved in a potential transaction with Jaiprakash Associates Limited (JAL) for capacity acquisition, though the outcome is pending as of March 2026.
External Factors
Industry Trends
The industry is consolidating, with Dalmia aiming to maintain its position as the 4th largest player. Trends include a shift toward green energy and digital reporting. The industry is currently facing subdued profitability due to pricing pressures despite steady demand.
Competitive Landscape
Competes with major players like UltraTech Cement. Market dynamics are characterized by aggressive capacity expansions and regional pricing volatility.
Competitive Moat
The moat is built on cost leadership (EBITDA/T focus) and a strong presence in high-growth regional markets (Northeast). Sustainability is reinforced by a formal capital allocation framework and a divestment strategy for non-core assets.
Macro Economic Sensitivity
Cement demand is highly sensitive to GDP growth and infrastructure spending. The company expects the East and Northeast markets to grow faster than the pan-India average, aiding capacity absorption.
Consumer Behavior
There is an increasing trend toward premium cement products, which Dalmia is capturing through its 22% premium product share.
Geopolitical Risks
While primarily domestic, the company is subject to global fuel price volatility (coal/petcoke) which impacts its INR 2,903 Cr power and fuel budget.
Regulatory & Governance
Industry Regulations
Operations are affected by mineral taxes (Tamil Nadu) and GST regulations. The company has INR 226 Cr tied up in GST input tax credits for projects.
Environmental Compliance
The company is increasing its share of renewable energy and has implemented an ESG rating through ICRA ESG Ratings Limited. It has invested INR 55 Cr in renewable energy power projects.
Taxation Policy Impact
Total tax expense for FY25 was INR 118 Cr, a 45% decrease from INR 216 Cr in FY24. The company benefited from tax adjustments for earlier years amounting to INR 72 Cr.
Legal Contingencies
The company recorded an exceptional expense of INR 113 Cr related to Jaiprakash Associates Limited (JAL) balances. Conversely, a tax and penalty demand of INR 66.3 Cr was waived/dropped by authorities in November 2025, resulting in no financial impact for that specific case.
Risk Analysis
Key Uncertainties
The primary uncertainty is the successful absorption of incremental capacity (reaching 75 MTPA) and the volatility of cement realizations, which dropped 4.3% recently. The outcome of the JAL transaction is also a key monitorable.
Geographic Concentration Risk
High concentration in the East and Northeast. While these are high-growth areas, the company is expanding into the Central region to mitigate this concentration risk.
Third Party Dependencies
Dependency on government departments for GST refunds (INR 226 Cr) and regulatory approvals for mining and expansions (e.g., Jaisalmer and Northeast ECs due by March 2026).
Technology Obsolescence Risk
The company is mitigating tech risks by implementing SAP, Oracle, and digital reporting platforms (KAVACH) across the organization.
Credit & Counterparty Risk
The company maintains a formal Treasury Policy requiring 80% of investments to be in AAA-rated debt instruments to ensure liquidity and counterparty safety.