Dalmia Bharat Sees Easing Cost Pressures And Pursues Expansion
ECONOMY & POLICY

Dalmia Bharat Sees Easing Cost Pressures And Pursues Expansion

Dalmia Bharat said input cost pressures for the cement industry were easing as tensions in West Asia subsided and the company would continue expansion plans. The chief financial officer, Dharmendra Tuteja, told shareholders at the annual general meeting that cost escalations were moderating but that effects of recent disruptions would persist through April to September. Management expects price adjustments to help protect margins in the near term.

Management had flagged war-related cost pressures in the fourth quarter, noting costs could rise by Rs 125-150 per tonne in April to June due to higher fuel, power, logistics and packaging expenses. A brokerage said volume recovery could occur with added capacity and cited a decline in pet coke prices to about $133-134 per t from earlier peaks. The company said supply chain normalisation should resume in or after the September quarter.

In financial year 26 net profit rose by more than 65 per cent to Rs 11.58 billion (Rs 11.58 bn) after better realisations, against Rs 6.99 bn in the prior year. The results were affected by a deferred tax charge of Rs 3.37 bn and revenue from operations increased about six per cent to Rs 148.04 bn. Volumes rose two per cent to 30 million tonnes (mn t).

The company outlined a capital expenditure programme of more than Rs 100 billion (Rs 100 bn) to raise capacity from 49.5 million tonnes per annum (mn tpa) currently to 66.7 mn tpa by financial year 28. It has committed over Rs 68 bn to add 12 mn tpa at Belgaum, Pune and Kadapa and is acquiring Jaiprakash Associates Limited assets for Rs 28.5 bn, adding 5.2 mn tpa.

Dalmia said Belgaum is at an advanced stage and Pune and Kadapa projects are largely on schedule, with installed capacity expected to reach 60.7 mn tpa by the end of financial year 27. The expansion is intended to position the company as a pan-India player and will be funded through internal accruals and debt while India’s installed cement capacity exceeds 720 million tonnes per annum.

Dalmia Bharat said input cost pressures for the cement industry were easing as tensions in West Asia subsided and the company would continue expansion plans. The chief financial officer, Dharmendra Tuteja, told shareholders at the annual general meeting that cost escalations were moderating but that effects of recent disruptions would persist through April to September. Management expects price adjustments to help protect margins in the near term. Management had flagged war-related cost pressures in the fourth quarter, noting costs could rise by Rs 125-150 per tonne in April to June due to higher fuel, power, logistics and packaging expenses. A brokerage said volume recovery could occur with added capacity and cited a decline in pet coke prices to about $133-134 per t from earlier peaks. The company said supply chain normalisation should resume in or after the September quarter. In financial year 26 net profit rose by more than 65 per cent to Rs 11.58 billion (Rs 11.58 bn) after better realisations, against Rs 6.99 bn in the prior year. The results were affected by a deferred tax charge of Rs 3.37 bn and revenue from operations increased about six per cent to Rs 148.04 bn. Volumes rose two per cent to 30 million tonnes (mn t). The company outlined a capital expenditure programme of more than Rs 100 billion (Rs 100 bn) to raise capacity from 49.5 million tonnes per annum (mn tpa) currently to 66.7 mn tpa by financial year 28. It has committed over Rs 68 bn to add 12 mn tpa at Belgaum, Pune and Kadapa and is acquiring Jaiprakash Associates Limited assets for Rs 28.5 bn, adding 5.2 mn tpa. Dalmia said Belgaum is at an advanced stage and Pune and Kadapa projects are largely on schedule, with installed capacity expected to reach 60.7 mn tpa by the end of financial year 27. The expansion is intended to position the company as a pan-India player and will be funded through internal accruals and debt while India’s installed cement capacity exceeds 720 million tonnes per annum.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code