Dalmia Bharat Ltd. share price target

EBITDA/ton for Q1FY27 stood at Rs 1059/ton (-16% YoY), led by increase in costs mainly power & fuel and packaging cost. Management has also guided for ~Rs 70-80/ton increase in cost in Q2FY27E on sequential basis due to fuel costs but reiterates annual costs savings of Rs 50100/ton in the coming period. Going ahead, we expect company's EBITDA/ton to improve to 1212/ton by FY28E (vs 1028/ton in FY26), driven by continuous focus on operational efficiency & positive operating leverage. Cost saving initiatives include using cost-effective non-fossil fuels from alternate sources, changing...

Dalmia Bharat’s (DALBHARA) 1QFY27 performance was above our estimates, led by higher-than-estimated realizations. Revenue rose ~7% YoY to INR38.9b (+4% vs. estimates).

mitigated through the addition of 182 MW of renewable energy capacity in FY26 and logistics optimization. In addition to the price hikes implemented at the end of Q4 FY26 across all regions, the ongoing easing of fuel costs is expected to further support margins to recover in H2FY27. The stock currently trades at a 1-year forward EV/EBITDA of 10x. We value DBL at...

Volume pick-up, operational efficiencies to drive growth Cost efficiency measures to support EBITDA per ton improvement: Company's EBITDA/ton for FY26 improved by 25.5% YoY and stood at Rs 1028/ton, led by better realisation and overall improvement in cost structure. The management also stated that the rise in power & fuel, packaging, and freight costs is mitigated by taking price hikes and also reiterated on reducing total cost by Rs 150200/ton over the coming period (~100/ton savings achieved so far). Going ahead, we expect company's EBITDA/ton to improve to...

Listless volume (2.3% YoY) and realisations gains (1.4% YoY) keep revenue gains muted at 4%; price hike in April to pass on cost inflation

Cost inflation of ~INR125150/t is expected in Q1FY27, led by packing (~INR8090/t) and fuel costs. Cost reduction of ~INR100/t achieved in FY26; ~INR50 100/t savings targeted in FY27. Dalmia Bharat (DALBHARA) reported better than expected operating performance in Q4FY26, supported by improved realisations and well-controlled costs, despite a modest volume miss due to a one-off kiln breakdown. Average NSR improved 1.5% QoQ driven by price hikes in key regions. Operating performance remained strong, with...

We maintain our BUY recommendation on the stock.

Dalmia Bharat’s (DALBHARA) 4QFY26 EBITDA grew ~14% YoY to INR9.0b (9% beat), driven by lower-than-expected opex/t. EBITDA/t increased ~11% YoY to INR1,025 (est. INR928).

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...

We maintain our BUY recommendation on the stock

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)...

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...