Dalmia Bharat Q1 FY27 Volume Up 9% YoY

Cement demand for the industry grew 7-8% YoY in Q1 FY27
Company delivered robust volume growth of 9% YoY despite market disruptions from state elections
Premium products share increased to 25% of portfolio
Introduced Weather365 premium-plus offering during the quarter
Realizations improved 6% QoQ supported by price increases and premiumization
Price increases of INR10-15 in South and INR15-20 in East markets implemented

Revenue from operations increased 7% YoY to INR3,890 crores
EBITDA per ton improved 3% QoQ to INR1,055
Absolute EBITDA declined 11% QoQ to INR805 crores due to external cost headwinds
Incentive accrual of INR45 crores during quarter, collections of INR60 crores
Incentive outstanding at quarter end: INR822 crores
Expected incentive accrual: INR45-50 crores per quarter for next couple of years

Raw material cost per ton increased 12% QoQ to INR823 due to limestone raising cost and other headwinds
Power and fuel cost per ton increased 10% YoY to INR1,045
Blended fuel cost increased QoQ from INR1.36 per Kcal to INR1.47 per Kcal
48% of power consumption sourced through renewable energy
Employee cost increased 13% QoQ to INR245 crores due to increment impact
Other expenses rose 3% QoQ to INR632 crores mainly due to packing bag price increase from INR9.5 to INR14 per bag
Cost mitigation initiatives generated savings of more than INR150 per ton

Other income increased to INR139 crores due to mark-to-market gains on treasury investments
Depreciation increased 12% YoY to INR361 crores due to capitalization of Umrangso clinker unit in January 2026
Expected depreciation increase: INR100 crores in FY27, additional INR100-150 crores in FY28
Finance cost increased 36% YoY to INR147 crores due to increased gross debt from acquisition funding
Average cost of debt: approximately 7%
Exceptional item of INR182 crores primarily includes stamp duties, transaction fees, and overheads related to Jaypee acquisition

Completed acquisition on May 29, 2026 at enterprise value of INR2,850 crores
Adds 5.2 million tons cement capacity and 3.3 million tons clinker capacity in Central India
Transaction funded through mix of debt and internal accruals
Commenced operations at Chunar Grinding Unit within 50 days of acquisition
Started trial production run at Rewa clinker unit
Additional investment for 18-megawatt WHRS facility at Rewa plant
Expected to contribute meaningfully to volumes from Q3 FY27 onwards

Current expansion projects at Belgaum, Kadapa, and Pune
Belgaum expansion progressing ahead of schedule, expected commercial production in next 6 months
Kadapa and Pune: site excavation underway with contractors mobilized
Total cement capacity to reach approximately 67 million tons by Q3 FY28
Additional projects to be announced in due course

Indian economy remains one of fastest-growing with RBI growth projection of 6.6% for FY27
GST collections reached all-time high of INR6.3 lac crores in Q1 FY27
Public capex at 21% of annual budgeted outlay in first 2 months
Expect cement demand growth of 7% in current financial year
Input costs expected to remain elevated in Q2 FY27
Targeting cost reduction of INR50-100 per ton through internal efficiencies
Long-term aspiration to become pan-India player with 110-130 million tons capacity