Dalmia Bharat Limited (DALBHARAT)

Construction Materials · Cement & Cement Products · NSE · Updated 13 August 2026
By StockFin Research Team AI-Assisted Analysis Source: BSE/NSE Filings
₹1,841.4 ↓ 18.91% (1Y)

🎯 Key Takeaways

  • Dalmia Bharat is in a strategic expansion and integration phase, transitioning from a high-margin mature phase into a growth-oriented scale-up model. Management is prioritizing capacity augmentation and infrastructure-linked demand capture, even at the cost of short-term profitability.
  • Revenue grew 3% QoQ to ₹3,181 in Q3FY25.
  • ⚠️ Margin compression from integration costs and rising input prices poses near-term earnings volatility.
Market Cap
₹32,402
P/E Ratio
57.5
Div Yield
0.00%
Promoter
0.0%

📖 The Story

Dalmia Bharat is in a strategic expansion and integration phase, transitioning from a high-margin mature phase into a growth-oriented scale-up model. Management is prioritizing capacity augmentation and infrastructure-linked demand capture, even at the cost of short-term profitability. The company is actively consolidating its pan-India footprint through targeted acquisitions and greenfield projects, supported by strong ESG positioning and infrastructure tailwinds.

📰 What's Happening

In Q1 FY27, Dalmia Bharat reported 7% YoY revenue growth to ₹3,890 crores, driven by 9% volume growth and premium share expansion to 25%. EBITDA declined 11% QoQ to ₹805 crores due to cost pressures, while PAT fell 51.4% YoY to ₹192 crores, primarily due to acquisition-related costs. The company completed the acquisition of a 5.2 MnTPA cement capacity and commissioned new grinding units in Uttar Pradesh. Expansion projects in Belgaum (Q4 FY27) and Kadapa (Q3 FY28) are on track to push total capacity to 66.7 MnTPA by FY28. Management highlighted progress on infrastructure-linked projects like the New Pamban Bridge and Chennai Metro, reinforcing its strategic positioning in public-sector-driven demand.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

MetricQ4FY23Q1FY24Q2FY24Q3FY24Q4FY24Q1FY25Q2FY25Q3FY25
Revenue3,9123,6243,1493,6004,3073,6213,0873,181
Operating Profit604667674839774606507548
OPM %18.1%16.8%18.7%21.5%15.2%18.5%14.1%16.1%
Net Profit6091441232663201454966
EPS₹31.42₹6.93₹6.30₹14.02₹16.80₹7.52₹2.45₹3.25

The financial trajectory reflects a deliberate shift toward growth investment, with revenue growth stabilizing at 7% YoY but profitability under pressure. OPM declined from 21.5% in Q3FY24 to 16.1% in Q3FY25, indicating margin compression amid integration costs and rising input expenses. However, operational metrics show improvement in leverage, with Net Debt/EBITDA declining to 1.47x from 0.33x, suggesting better capital structure management despite higher absolute debt. The EBITDA margin pressure is attributed to near-term cost headwinds, but management expects recovery through scale efficiencies and infrastructure-driven volume growth.

🔮 Management Outlook & What's Next

Management expects sustained volume growth and gradual margin improvement through operational excellence, with near-term cost pressures offset by infrastructure demand and integration of new capacity. They reiterated confidence in achieving 66.7 MnTPA capacity by FY28, with Belgaum unit commissioning in Q4 FY27 and Kadapa in Q3 FY28. Sustainability remains a strategic pillar, with renewable energy at 48% and continued ESG leadership. Management emphasized that the current phase is focused on strategic progress rather than short-term earnings, aligning investments with long-term structural demand from public infrastructure and urbanization.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Cement & Cement Products

Company MCap (₹ Cr) P/E ROCE ROE D/E
UltraTech Cement Limited 3.38 L Cr 44.1 12.3% 10.8% 0.33
Grasim Industries Limited 2.00 L Cr 21.1 4.9% 4.6% 1.88
Ambuja Cements Limited 1.07 L Cr 23.3 4.6% 7.7% 0.00
SHREE CEMENT LIMITED 90,094 73.6
JK Cement Limited 42,219 58.6
Dalmia Bharat Limited 32,402 57.5
ACC Limited 25,592 12.0 11.0% 10.4% 0.00
The Ramco Cements Limited 21,650 57.2
JSW Cement Limited 16,793 0.0
The India Cements Limited 12,401 -56.7

⚠️ Risk Factors

1. Margin compression from integration costs and rising input prices poses near-term earnings volatility. 2. Execution risk in commissioning new capacity (Belgaum, Kadapa) on schedule amid infrastructure delays. 3. High leverage in absolute terms, though currently manageable, could constrain flexibility if economic conditions deteriorate. 4. Dependence on public-sector infrastructure spending introduces policy and execution-related demand uncertainty.

📋 Recent Filings

🧠 Analyst's Read

Dalmia Bharat is executing a deliberate scale-up strategy with long-term structural tailwinds from infrastructure demand and urbanization. While near-term profitability is under pressure from acquisition costs and expansion, the company is building a pan-India platform with sustainable cost and ESG advantages. Investors should monitor margin recovery trends, capacity commissioning timelines, and management's ability to translate volume growth into sustainable earnings. The next catalyst will be Q2 FY27 results and updates on integration progress during the July 24 conference call.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-08-13.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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