Birla Corporation (500335) Q2 25/26 earnings summary

Executive summary

• Maintained performance in line with industry despite headwinds such as subdued prices in the central region and unseasonal rains impacting key markets and dispatches.

• Consolidated revenue from operations for Q2 FY26 was ₹2,206.53 crore, up 13% year-over-year; half-year revenue reached ₹4,660.75 crore, up 12% year-over-year.

• Net profit after tax for Q2 FY26 was ₹90.48 crore, compared to a loss of ₹25.19 crore in Q2 FY25; half-year net profit was ₹210.05 crore, up from ₹7.43 crore in the prior year period.

• Temporary setback due to breakdown at the Maihar unit led to reliance on purchased clinker, impacting profitability by INR 20–25 crores.

• Strategic focus on trade (B2C) and premium/blended cement insulated from sharp price declines in non-trade segments.

Financial highlights

• Profitability for H1 FY26 around INR 700+ crores, with EBITDA per tonne at INR 712 for Q2 and INR 714 for H1.

• Total income for Q2 FY26 was ₹2,233.44 crore, up from ₹1,969.78 crore in Q2 FY25; half-year total income was ₹4,719.60 crore, up from ₹4,177.19 crore.

• Q2 incentive accrual of INR 18 crores.

• Mukutban plant achieved 6 lakh tonnes in Q2, a YoY growth of 20%.

• Net debt stands at approximately INR 2,450 crores.

Outlook and guidance

• H2 typically stronger than H1; management expects H2 FY26 to outperform H1.

• Management expects continued improvement in profitability, supported by operational efficiencies and favorable market conditions.

• Anticipates cement demand revival in Q3 FY26, led by government CapEx, with expected YoY volume growth of 4–5%.

• Price improvement expected from late Q3, with major correction likely in Q4 if demand picks up.

• Legal proceedings regarding government incentives in West Bengal remain ongoing, with the company pursuing claims and challenging recent legislative changes.