Birla Corporation (500335) investor relations material

Executive summary

• Trade and blended cement volumes were maximized, but price increases did not materialize in these segments, impacting realizations, especially in Central India where price softness persisted due to competition.

• Consolidated revenue from operations for Q1 FY27 was ₹2,646.45 crore, up 7.8% year-over-year from ₹2,454.22 crore.

• Consolidated net profit after tax for the quarter was ₹115.73 crore, compared to ₹119.57 crore in Q1 FY26.

• Non-trade and OPC segments saw better price recovery, but the company’s focus remains on trade and blended cement for sustainability and strategy.

• Logistics disruptions in Maharashtra affected volumes, though opportunities remain for further ramp-up.

Financial highlights

• Mukutban plant volume was 7.5 lakh tons; total lead distance 335 km, Mukutban lead 400 km; fuel cost INR 1.64 per kcal.

• CapEx for Q1 was INR 120 crores; net debt stood at INR 2,300 crores.

• Consolidated EBITDA for Q1 FY27 was ₹432.39 crore, down from ₹445.74 crore in Q4 FY26.

• Realization per ton reduced by INR 40, mainly due to lower incentives; excluding these, realization rose by INR 8 sequentially.

• Other expenses increased from INR 511 crores to INR 551 crores, attributed to higher clinker production, mining, and packaging costs.

Outlook and guidance

• Cost pressures, especially from fuel, are expected to increase by INR 70–80 per ton in Q2.

• Growth guidance and CapEx plans for FY27 remain unchanged; full-year EBITDA guidance is premature due to market uncertainties.

• CapEx guidance for FY27 is INR 900 crores, with significant increases expected in subsequent years as expansion projects ramp up.

• Net debt is expected to be around INR 2,000 crores by year-end, maintaining leverage below 2.5x net debt/EBITDA.

• Commercial production commenced at Bikram Coal Mine, Madhya Pradesh, from 22nd June 2026.