Dalmia Bharat (DALBHARAT) investor relations material

Executive summary

• Achieved highest ever quarterly EBITDA of INR 883 crore, up 32% YoY, with EBITDA per ton improving 40% YoY to INR 1,261, despite a 5.8% YoY decline in sales volumes to 7 million tonnes due to the end of tolling arrangements with Jaiprakash Associates Limited.

• Focused on balancing volume growth and profit margins, prioritizing profitable sales and brand strengthening over market share in certain regions.

• Net Debt/EBITDA stood at 0.33x as of June 30, 2025, reflecting a strong balance sheet.

• Announced INR 3,287 crore investment for new clinker and grinding units in Andhra Pradesh and Tamil Nadu.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were approved by the Board and reviewed by statutory auditors.

Financial highlights

• Revenue was INR 3,636 crore, nearly flat YoY, as higher cement prices offset lower volumes; consolidated net profit for Q1 FY26 was INR 395 crore, up from INR 145 crore in Q1 FY25.

• EBITDA margin improved to 24.3% from 19.4% YoY; total cost per ton increased 2.1% YoY to INR 3,932.

• Finance cost rose to INR 108 crore in Q1 FY26 from INR 95 crore in Q1 FY25, with cost of borrowing at 7.5%.

• Basic and diluted EPS from continuing operations for Q1 FY26 stood at INR 20.94, compared to INR 7.50 in Q1 FY25.

• Share of trade sales increased to 68% from 64% YoY; premium product mix steady at 22%.

Outlook and guidance

• Cement demand expected to grow 6-7% in FY2026, supported by government spending and housing sector; demand growth to pick up post-monsoon.

• Clinker capacity expected to reach 34.3 MnT by Q2 FY28, with major expansions in South and North East regions.

• Operational renewable energy capacity projected to reach 576 MW by FY26.

• Confident of maintaining net debt/EBITDA below 2x despite ongoing expansions.

• Targeting top decile EBITDA per ton in the industry through cost leadership and improved NSR.