Q1 2026 Dalmia Bharat Ltd Earnings Call Transcript
Key Points
- Dalmia Bharat Ltd (BOM:542216) reported its highest ever quarterly EBITDA of INR883 crores, supported by market price improvements and enhanced sales quality.
- The company has announced significant expansion plans, including a 3.6 million tons per annum clinker unit in Belgaum and a 3 million tons per annum grinding unit in Pune, aiming to increase total cement capacity to 63.5-64 million tons by FY28.
- Dalmia Bharat Ltd is focusing on cost reduction, targeting a decrease of INR150 to INR200 per ton over the next two years, with efforts in renewable energy and logistics optimization.
- The company is committed to becoming a Pan-India player, with strategic expansions in new and untapped regions, as well as increasing capacity in high-utilization areas.
- Dalmia Bharat Ltd has improved its brand positioning and distribution, leading to a 9% quarter-on-quarter improvement in net sales realization (NSR).
- Sales volumes remained flat year-over-year, excluding volumes from Jaypee plants, indicating challenges in market share growth.
- Raw material costs per ton increased by 8.5% year-over-year due to new mineral taxes imposed by the Tamil Nadu government.
- There is ongoing legal uncertainty regarding incentives from the West Bengal government, which could impact financial outcomes.
- The company faces challenges in maintaining pricing discipline in a competitive market, with high levels of discounts affecting net pricing.
- Dalmia Bharat Ltd's expansion plans are contingent on the outcome of the Jaypee acquisition, creating uncertainty in capacity growth projections.
Ladies and gentlemen, good morning, and welcome to the earnings conference call of Dalmia Bharat Limited for the quarter ended June 30, 2025. Please note that this conference call will be for 60 minutes. (Operator Instructions)
This conference call is being recorded, and the transcript will be put on the website of the company. After the management discussion, there is an opportunity for you to ask questions. (Operator Instructions)
Before I hand over the conference to the management, I would like to remind you that certain statements made during the course of this call may not be based on historical information or facts and may be forward-looking statements.
These statements are based on expectations and projections and may involve a number of risks and uncertainties such that the actual outcome may differ materially from those suggested by such statements. On the call, we have with us Mr. Puneet Dalmia, Managing Director and CEO; Mr. Dharmender Tuteja, CFO. and the other management of the company.
I would now like to have the conference call over to Ms. Aditi Mittal
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