27-Oct-2026 07:53:52

CITI on Dalmia Bharat ; Buy, TP cut to Rs 1900

At Rs4.9bn (3% below), 2Q EBITDA fell 29% yoy – higher costs (9%) offset the benefit of volumes (+3%) and realizations (+1%). EBITDA/t (adj): Rs694 (Rs746 ex central assets) vs. Rs1,055 in 1Q and Rs1,010 last year. QoQ EBITDA/t contraction on lower realizations, higher costs, lower volumes, JPA losses. Net D/EBITDA 2x vs. 1.5x in 1Q. 2Q has been disappointing, with little visibility on cost improvement in 3Q; however, medium-term progress on premiumization/costs could yield favorable returns. EBITDA/t is likely to expand – variable cost increases +JPA losses to be offset by better operating leverage, reasonable mix, and higher prices. $60 EV/t is inexpensive

DALMIA BHARAT LIMITED

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