27-Oct-2026 08:19:42
DALMIA BHARAT Q2 CONCALL : MANAGEMENT EXPECTS H2 DEMAND RECOVERY, TARGETS ₹1,000+ EBITDA PER TONNE IN Q3 & MAINTAINS ₹3,200–3,400 CR FY27 CAPEX GUIDANCE
• MANAGEMENT EXPECTS H2 FY27 CORE CEMENT VOLUME GROWTH OF APPROXIMATELY 7–8%, IN LINE WITH ESTIMATED INDUSTRY GROWTH, SUPPORTED BY DEMAND RECOVERY • MANAGEMENT IS HOPEFUL OF ACHIEVING Q3 EBITDA ABOVE ₹1,000 PER TONNE, SUBJECT TO SUSTAINED CEMENT PRICE INCREASES & IMPROVED CAPACITY UTILIZATION • MANAGEMENT MAINTAINS FY27 CAPEX GUIDANCE OF ₹3,200–3,400 CR, WITH TOTAL CEMENT CAPACITY EXPECTED TO REACH APPROXIMATELY 67 MTPA AFTER ONGOING EXPANSIONS • Q2 CEMENT SALES VOLUME UP 3% YOY TO 7.1 MILLION TONNES, WHILE CORE VOLUMES EXCLUDING CENTRAL INDIA GREW 4% • Q2 REPORTED EBITDA PER TONNE STOOD AT ₹698, COMPARED WITH ₹746 FOR CORE OPERATIONS EXCLUDING CENTRAL INDIA • Q2 CEMENT REALIZATIONS DECLINED ₹49 PER TONNE QOQ, WHILE CORE OPERATING COSTS INCREASED APPROXIMATELY ₹259–260 PER TONNE • MANAGEMENT REPORTED CEMENT PRICE INCREASES OF APPROXIMATELY ₹15 PER BAG DURING SEPTEMBER–OCTOBER, WHICH COULD SUPPORT Q3 REALIZATIONS • FUEL COSTS INCREASED APPROXIMATELY ₹100 PER TONNE DURING Q2, WITH MANAGEMENT EXPECTING AN ADDITIONAL ₹75–80 PER TONNE COST IMPACT IN Q3 • HEAVY RAINFALL & FLOODING AFFECTED CEMENT DEMAND IN EAST & NORTHEAST INDIA, WHILE SOUTH & WEST MARKETS RECORDED STRONGER GROWTH • MANAGEMENT TARGETS 35–40% CAPACITY UTILIZATION AT CENTRAL INDIA OPERATIONS BY FY27-END, WITH OPERATING BREAKEVEN EXPECTED IN Q4 FY27 • CENTRAL INDIA OPERATIONS DILUTED Q2 COMPANY EBITDA BY APPROXIMATELY ₹50 PER TONNE, WITH DILUTION EXPECTED TO INCREASE TO ₹100–125 PER TONNE IN Q3 • MANAGEMENT TARGETS NORMALIZED CENTRAL INDIA EBITDA PERFORMANCE BY FY28-END, SUPPORTED BY REWA OPERATIONS RAMP-UP & DISTRIBUTION EXPANSION • BELGAUM CLINKER EXPANSION ENTERED TRIAL RUNS AHEAD OF SCHEDULE, WHILE PUNE & KADAPA EXPANSION PROJECTS REMAIN ON TRACK FOR FY28 • RENEWABLE ENERGY SHARE REACHED 52%, WITH APPROXIMATELY 450 MW CAPACITY; MANAGEMENT CONTINUES TARGETING INCREMENTAL COST SAVINGS OF ₹50–100 PER TONNE ANNUALLY • MANAGEMENT AIMS TO MAINTAIN SUSTAINABLE NET DEBT-TO-EBITDA BELOW 2X; HIGHER FUEL COSTS, CENTRAL INDIA LOSSES, WEAK CAPACITY UTILIZATION & ELEVATED CAPEX REMAIN KEY RISKS
DALMIA BHARAT LIMITED