Dalmia Bharat Limited (NSE:DALBHARAT) reported unaudited consolidated financial results for the quarter ended 30 June 2026 on 24 July 2026. The company announced completion of its acquisition of Jaiprakash Associates' cement undertaking, expanding installed capacity to 54.7 MnTPA with the addition of 5.2 MnTPA across four plants in Central India. Revenue from operations grew 7% year-on-year to Rs 3,890 crore, while sales volume increased 9% YoY to 7.6 million tonnes, despite temporary disruptions from state elections.
Key Highlights
- Installed cement capacity increased to 54.7 MnTPA following completion of acquisition of Jaiprakash Associates' cement business, adding 5.2 MnTPA capacity and 3.3 MnTPA clinker capacity across Madhya Pradesh and Uttar Pradesh.
- Revenue from operations rose 7% year-on-year to Rs 3,890 crore in Q1 FY27; sales volume improved 9% YoY to 7.6 million tonnes.
- EBITDA per tonne improved sequentially to Rs 1,055; consolidated EBITDA stood at Rs 805 crore, though down 8.8% year-on-year owing to acquisition-related exceptional costs of Rs 182 crore.
- Commercial production commenced at Chunar Grinding Unit (2.5 MnTPA) on 20 June 2026; trial operations began at Rewa Clinker Unit (3.3 MnTPA) in July 2026.
- Acquisition consideration valued at enterprise value of Rs 2,850 crore; net debt to EBITDA ratio stood at 1.47x versus 0.33x in prior year quarter due to acquisition financing.
- Company acquired 41% stake (26% on fully-diluted basis) in Oyster Green Hybrid Five Private Limited for hybrid power sourcing to its Kadapa plant at aggregate consideration of approximately Rs 17 crore.
- Recognised by CII-ITC for corporate social responsibility, FAME India Awards 2026 for health, safety and environment excellence, and Kalinga Environment Excellence Award for environmental stewardship.
About the Company
Dalmia Bharat Limited, founded in 1939 and headquartered in New Delhi, is India's fourth-largest cement manufacturer by installed capacity. The company operates 19 manufacturing units spread across 12 states, producing Portland cement and clinker for construction, infrastructure, and industrial applications. Dalmia Bharat is listed on the BSE (scrip code: 542216) and NSE (symbol: DALBHARAT). The company has committed to renewable energy transition through RE100, EP100 and EV100 initiatives and maintains one of the lowest carbon footprints in the global cement industry. Its distribution network serves customers across India's residential, commercial, and infrastructure sectors.
Announcement in Detail
Dalmia Bharat completed its acquisition of Jaiprakash Associates' cement undertaking, marking a significant expansion in the company's pan-India footprint. The acquisition, valued at an enterprise value of Rs 2,850 crore, adds 5.2 MnTPA of cement capacity and 3.3 MnTPA of clinker capacity across four strategically located plants in Madhya Pradesh and Uttar Pradesh. The two acquired units have commenced commercial operations: the Chunar Grinding Unit (2.5 MnTPA capacity) started commercial production on 20 June 2026, while trial operations at the Rewa Clinker Unit (3.3 MnTPA capacity) commenced in July 2026. This acquisition takes Dalmia Bharat's total installed cement capacity to 54.7 MnTPA, positioning it to serve the Central region more effectively.
For the quarter ended 30 June 2026, Dalmia Bharat reported consolidated revenue from operations of Rs 3,890 crore, representing a 7% year-on-year increase from Rs 3,636 crore in the corresponding prior year quarter. Sales volume improved 9% year-on-year to 7.6 million tonnes compared to 7.0 million tonnes in Q1 FY26. Consolidated EBITDA for the quarter stood at Rs 805 crore versus Rs 883 crore in the prior year quarter, declining 8.8% year-on-year. However, EBITDA per tonne improved sequentially to Rs 1,055 per tonne in Q1 FY27. The company's profit before tax (before exceptional items) declined 13.1% year-on-year to Rs 436 crore from Rs 502 crore. After accounting for exceptional items of Rs 182 crore, primarily attributable to acquisition-related costs, profit before tax stood at Rs 254 crore. Consolidated net profit after tax fell 51.4% year-on-year to Rs 192 crore from Rs 395 crore, impacted by the exceptional charges and acquisition financing costs.
The company also entered into a Share Subscription and Shareholders' Agreement and a Power Consumption Agreement to acquire a 41% stake (26% on a fully-diluted basis) in Oyster Green Hybrid Five Private Limited, an SPV of Oyster Renewable Energy Private Limited. The aggregate consideration for this stake acquisition is approximately Rs 17 crore, to be paid in one or more tranches. This investment will enable Dalmia Bharat to source hybrid power (wind and solar) as a captive consumer for its Kadapa plant, aligning with the company's renewable energy commitments.
Impact on Investors
The acquisition of Jaiprakash Associates' cement assets represents a material expansion of Dalmia Bharat's installed capacity and geographic reach. Investors will note that total capacity has increased from 49.5 MnTPA to 54.7 MnTPA, strengthening the company's position in the Indian cement sector. The addition of strategically located Central region assets provides access to growing infrastructure and construction demand in Madhya Pradesh and Uttar Pradesh. The sequential improvement in EBITDA per tonne to Rs 1,055 despite acquisition integration costs indicates operational resilience, though the absolute EBITDA decline year-on-year reflects temporary disruptions from state elections and exceptional acquisition-related costs. Revenue and volume growth at 7% and 9% respectively demonstrate the company's ability to drive sales expansion even during the integration phase.
Investors should observe that the net debt to EBITDA ratio has increased to 1.47x from 0.33x in the prior year quarter, reflecting acquisition financing undertaken to complete the purchase of the Central region assets. The company has acknowledged that leverage remains modest despite the acquisition, indicating prudent capital structure management. The profit after tax decline of 51.4% year-on-year is substantially attributable to Rs 182 crore in exceptional acquisition-related costs, a one-time charge that will not recur once integration is complete. The management has highlighted that cost headwinds remain in the near term, but operational excellence initiatives and disciplined execution are expected to support profitable and sustainable growth. The investment in renewable energy through the Oyster Green hybrid power stake is aligned with the company's sustainability commitments and will reduce long-term energy cost exposure at the Kadapa facility.
Sector / Market Context
India's cement industry is undergoing consolidation and capacity expansion as large manufacturers strengthen their pan-India presence to capture growing demand from infrastructure, real estate, and industrial sectors. According to industry data, government's sustained focus on infrastructure development through National Infrastructure Pipeline and housing schemes continues to support long-term cement demand. The sector faces near-term headwinds including commodity cost inflation, energy cost volatility, and capacity utilisation pressures during integration of recently acquired assets. However, structural demand drivers remain intact, with cement consumption expected to grow in line with India's GDP growth trajectory and ongoing government investment in roads, railways, ports, and urban development. Companies with established distribution networks, operational efficiency, and cost leadership capabilities are positioned to benefit from sector consolidation and volume growth.