💰 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.