Dalmia Bharat Ltd. - Q2 FY26 Earnings Call Highlights for Investors

Dalmia Bharat Ltd. has delivered a robust operational performance for the second quarter of the fiscal year 2026, underscored by significant margin expansion and strong profit growth. Key Financial Highlights (Year-on-Year): Net Profit Surge: Consolidated Net Profit witnessed a multi-fold increase, reporting ₹239 crore compared to ₹49 crore in the year-ago quarter, significantly exceeding market poll expectations of ₹230 crore. Revenue Growth: Revenue from operations grew by 11.4% to ₹3,417 crore, up from ₹3,087 crore last year, demonstrating sustained topline traction despite being marginally below the consensus estimate. EBITDA and Margin Expansion: Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) surged by 60% to ₹696 crore. This impressive operational leverage led to a substantial increase in the EBITDA margin to 20.4% from 14% in Q2 FY25, driven by healthy cement realizations and effective cost management. Capital Allocation & Strategic Update: Interim Dividend: The Board has declared an interim dividend of ₹4 per share, reflecting confidence in the company's financial health and commitment to shareholder returns. Capacity Expansion: Progress on strategic capacity expansion remains on track. The 3.6 MnT Umrangso clinker line has commenced trial production in September 2025 and is slated for commercial production commencement by Q3 FY26, supporting our vision of becoming a PAN-India player. Management Commentary: Management highlighted that the strong profit and EBITDA growth is a testament to the business model's resilience and focus on operational efficiency. The government's reduction in GST on cement from 28% to 18% was cited as a welcome fiscal relief, anticipated to boost consumption and demand in the domestic market, further supporting the encouraging profitability outlook. The company remains committed to its growth trajectory, underpinned by a strong balance sheet.