Dalmia Bharat Reports Significant Profit Growth Amidst Rising War-Related Cost Pressures

Dalmia Bharat Reports Sharp Rise in Profits Amid Cost Pressures

Dalmia Bharat Ltd, the country's fourth-largest cement maker by capacity, has reported a significant increase in quarterly and annual profits, but has also flagged cost pressures that began building in March due to the West Asia conflict. The company's net profit jumped more than 65% to ₹1,158 crore in the financial year ended 31 March 2026, driven by better realizations and a moderate rise in costs. However, its profit was impacted by a ₹337 crore deferred tax charge.

Despite the sharp rise in profits, the company's revenue from operations increased only about 6% to ₹14,804 crore in FY26, while volume growth remained muted, rising 2% to 30 million tonnes. The company has initiated price hikes in April to pass on the cost increase, hoping that these will offset cost increases without impacting demand or margins.

In the March quarter, Dalmia Bharat reported a better performance, with its net profit more than tripling to ₹394 crore, up from ₹128 crore in the preceding three months. Revenue increased 21% sequentially to ₹4,245 crore, driven by a 21% increase in sales volumes, which rose to 8.8 million tonnes from 7.3 million tonnes in the December quarter. However, costs climbed over 14% to ₹3,840 crore, reflecting persistent input cost inflation.

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Dalmia Bharat is not the only company to flag cost pressures due to the West Asia conflict. UltraTech Cement, the country's largest cement maker, has also reported higher costs, with fuel and power expenses rising 6% and freight costs going up 10%. The company has warned that rising fuel, packaging, and transport costs are a challenge and that petrol and diesel prices could increase further if global crude oil prices go up.

In a note dated 28 April, Raghav Maheshwari, research analyst at brokerage firm Equirus Securities, said that Dalmia Bharat reported a mixed performance, with volumes being muted, but profitability better on lower cost. He expects Dalmia to report better growth going forward on the commissioning of incremental capacity and improving macros and demand outlook fueled by higher economic and infrastructure activity pickup.

Dalmia Bharat has outlined an expenditure plan of ₹3,200-3,400 crore for FY27, with ₹2,200 crore towards expanding capacity to 55.5 million tonnes, up from 49.5 million tonnes. The company is on course to achieve a 75 MT capacity by FY28 and is looking to capitalize on improving regional demand in the western and southern markets.

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