Dalmia Bharat Ltd. share price target

We recently met with Dalmia Bharat’s (DALBHARA) management to understand current industry demand, pricing environment and the company’s growth plans. Management noted that overall cement demand momentum is strong.

Renewable energy (RE) usage improved meaningfully, with RE share at 48% and total The 3.6MTPA Umrangso clinker line commenced commercial operations in January 2026, while the Belgaum, Pune and Kadapa projects continue to progress as scheduled....

EBITDA per ton to improve led by cost efficiency measures: Company's EBITDA/ton stood at Rs 1029/ton in 9MFY26, up ~33% YoY led by overall improvement in cost structure. Going ahead, we expect company's EBITDA/ton to improve to 1340/ton by FY28E (vs 819/ton in FY25), driven by continuous focus on cost optimisation & positive operating leverage (led by healthy volume growth). The management reiterated on reducing Rs 150200/ton cost over the next 2 years (~4550/ton savings achieved so far). Operational efficiency initiatives include using cost-effective non-fossil fuels from alternate sources,...

Dalmia Bharat (DALBHARA)’s 3QFY26 earnings were below our estimates. EBITDA (adjusted for prior years' incentive of INR370m) grew ~11% YoY to INR5.7b (~8% miss). Adjusted EBITDA/t came at INR774 (up ~1% YoY; ~9% below our estimates).

Government initiatives, including GST rate reductions on key construction materials, serve as a major policy tailwind, improving cost dynamics and supporting demand recovery in the cement sector. Dalmia Bharat is focused on balancing margin and volume growth through a flexible market strategy. In line with its pan-India expansion vision, the company plans to scale its...

Strategic capacity expansion and focus on profitability to lead growth: Sales volume was largely inline with expectations at 3% YoY in Q2FY26, as the company remained focused on profitability. Management reiterated that the focus will remain on profitable growth going forward and quality of sales through product mix and balancing strategy across micro-markets based on utilization and demand-supply dynamics. On the capacity addition front, the ongoing expansion at Belgaum (3 mtpa) and Pune (3 mtpa) are on track and expected by FY27E end. Further, the planned 6 mtpa expansion at Kadapa (AP)...

We maintain our BUY recommendation on the stock

Revenue increased 11% YoY (-6% QoQ) to Rs 34bn, as volume gains muted at 3% and realisations gains continue at 8% YoY

Author: Vincent K A - Sr. Research Analyst DBL aims to reach approximately 75 MT by FY28 while maintaining financial discipline with a net debt to EBITDA cap of 2x (currently at 0.33x). DBL is also prioritizing the enhancement of its renewable energy (RE) portfolio, with operational RE capacity (including group captive) reaching 267 MW in FY25, up from 185 MW in FY24. The stock currently trades at 1Yr Fwd EV/EBITDA...

We maintain our BUY recommendation on the stock.

Dalmia Bharat (DALBHARA) reported a strong operating performance in Q1FY26, driven by better pricing. Average NSR rose 8.7% QoQ, aided by price recovery in the Eastern and Southern regions post Mar'25. Volumes remained flat YoY (ex-tolling) with the company's focus on profitable volume growth. Higher prices and lower traded goods led to EBITDA/t rising to Rs1,261. Cement...

Dalmia Bharat’s (DALBHARA) 1QFY26 EBITDA grew ~32% YoY to INR8.8b (9% beat, led by lower-than-estimated opex/t). EBITDA/t increased 40% YoY to INR1,261 (~12% above our estimate), and OPM expanded 5.8pp/4.9pp YoY/ QoQ to ~24% (vs. est. ~22%).

Revenue remains flat YoY (-11% QoQ) to Rs 36.4bn, as volume gains took a back in a chase to improve realisations gains

Cement demand remains muted especially in the key Eastern region where demand is struggling over last 5 quarters. Despite regime change in Odisha and upcoming elections in West Bengal, demand remained muted in last few months. East region prices improved in Apr/May along with other regions by ~Rs20/bag and got cut by Rs5 in June due to early monsoon however current...

We reiterate our BUY recommendation with a Target Price of Rs 2360/share, offering an upside potential of 13% from the CMP.

For Q4FY2025, Dalmia Bharat Limited’s (Dalmia) consolidated revenue of Rs. 4,091 crore (down 5.0% y-o-y) missed our estimate, primarily due to a 2.8% y-o-y decline in cement volumes (excluding JPA tolling volumes of 0.6 mt).

We initiate coverage on Dalmia Bharat with a Buy Rating because of its reasonable valuation as compared to its peers, its leadership position in the high growth region like North-East, strong presence in South & East. Besides, its continuous expansion, improving financials and the company’s focus on being carbon negative will continue to drive growth.