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Dalmia Bharat stock fell 6% on Tuesday, hitting a new 52-week low of ₹1,507.70, after disappointing September-quarter (Q2FY27) results triggered earnings downgrades. Volumes rose 3% year-on-year to 7.1 million tonnes, impacted by muted demand in the east and northeast. Dalmia lagged the industry’s estimated 9-10% growth, pointing to market share loss.
Despite cost-saving initiatives, Q2 Ebitda fell 29% year-on-year to ₹493 crore, missing consensus estimates. Profitability was hit by weak volumes, sequentially lower realizations and input cost inflation. Ebitda per tonne slid to a multi-quarter low of ₹694. A further fuel cost impact of ₹75-80 per tonne is likely in Q3, along with additional costs of ₹100-125 per tonne associated with ramping up the acquired JaiPrakash Associates cement assets. Antique Stock Broking cut its FY27-29 Ebitda estimates by 7-11% and cautioned that the profitability gap versus peers is likely to widen further.
Dalmia expects improving cement prices in its key eastern and southern markets, along with operating leverage, to partly offset the pressure. It sees Ebitda per tonne potentially recovering to ₹1,000 in Q3, provided recent price hikes of around ₹15 per bag sustain, alongside benefits from improved fixed-cost absorption and a better regional mix. It is hopeful of a demand recovery and volume growth in line with the industry at around 7-8% in H2FY27, aided by timely capacity additions.
Dalmia is on track to reach 67mtpa of grinding capacity by the end of FY28, with Belgaum, Pune and Kadapa scheduled to be commissioned in Q4FY27, Q2FY28 and H2FY28, respectively. Its expanding capacity base, including central India assets, strengthens its pan-India presence, but capacity utilization needs to improve.
“Over FY21-FY26, capacity grew at a 10% CAGR, outpacing volume growth of 7.7%, highlighting the importance of improving utilisation to maximise returns from the expanded capacity base,” said Nirmal Bang Institutional Equities. Capacity utilisation at 62%/61% in FY25/FY26 and 58% in H1FY27 was below industry levels, it added.
Of the FY27 capital expenditure target of ₹3,200-3,400 crore, ₹1,420 crore was spent in H1. Leverage has inched up amid capacity expansions. Net debt rose to ₹5,722 crore, taking net-debt/Ebitda to 2x from 1.5x in Q1. Dalmia is committed to maintaining net-debt/Ebitda below 2x on a sustainable basis.
So far in 2026, the stock is down 29%, trading at an FY28 EV/Ebitda multiple of 9.37x, in line with its five-year average, showed Bloomberg data. However, the scope for a re-rating is low.
Harsha Jethmalani is a Deputy Editor at Mint with over a decade of experience covering stock markets and corporate India. As a key member of the Mark to Market team, she specializes in delivering cutting-edge commentary on market trends, the economy, and corporate financial reports.<br><br>Born and raised in Mumbai, Harsha’s entry into business journalism was a serendipitous pivot. Graduating during the 2008–2009 financial crisis, her initial goal of becoming a research analyst at an MNC was rerouted. However, what began as a chance career move quickly became a conscious choice; she discovered that financial journalism is a powerful storytelling tool capable of influencing and empowering the financial decisions of a massive audience.<br><br>Harsha began her career in 2009 at IRIS Business Services (Myiris.com), tracking mutual funds and interviewing fund managers. In 2011, she joined the Network18 Group, writing extensively on equity market trends for Moneycontrol.com and hosting pre- and post-market audio updates. Following a stint covering personal finance at Dalal Times, she joined Mint in 2016 as a Content Producer, steadily rising through the ranks to her current editorial position.<br><br>A defining highlight of her tenure at Mint was her extensive coverage of India's historic Goods and Services Tax (GST) reform. She chronicled the massive indirect tax overhaul from its initial conceptual and execution hurdles to its eventual streamlining. Her impactful reporting earned official recognition when her article exposing a spike in gold smuggling ahead of the GST rollout was formally acknowledged by the Office of the Director General of Audit (Central), Kolkata. Currently, Harsha closely tracks the IT, cement, real estate, and paint sectors. Her sharp news sense and ability to spot emerging trends consistently bring fresh, actionable perspectives to market analysis.<br><br>She holds a postgraduate degree in financial markets from Indira Gandhi National Open University and a Bachelor of Management Studies from Vivekanand Education Society, Chembur, Mumbai.
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