Dalmia Bharat Ltd. (Q2 FY27) Earnings & Analyst Update

Financial Performance Overview Dalmia Bharat reported a challenging September quarter (Q2 FY27), significantly missing street estimates. Consolidated revenue stood at ₹3,563 crore, falling short of the ₹3,646 crore consensus. The company recorded a net loss of ₹208 crore, deviating sharply from the projected ₹75 crore net profit. EBITDA declined 29% year-on-year to ₹493 crore, yielding a margin of 13.84%. Crucially, EBITDA per tonne contracted to ₹698, pressured by muted net sales realisations (down 1% sequentially) and rising power and fuel costs. Key Headwinds & Exceptional ItemsVolume & Demand: Sales volumes came in at 7.1 million tonnes (below the 7.3 million estimate), impacted by subdued regional demand in the eastern and north-eastern ***** Inflation: Elevated fuel and power costs severely compressed operating ***** Charges: The bottom line was weighed down by a ₹282 crore impairment loss on specific assets (including three captive power plants and one brand) and a ₹57 crore one-time charge for an employee separation ***** Revisions & Market Sentiment Following the earnings release, the stock experienced a 6% pullback as multiple brokerages adjusted their ratings and price targets to reflect near-term weaknesses:HSBC: Downgraded to 'Hold' (Target: ₹1,820), citing structural cost increases, muted volumes, and a prolonged turnaround for acquired ***** Stanley: Maintained 'Underweight' (Target: ₹1,640), warning that elevated variable costs will likely offset the benefits of recent cement price ***** Maintained 'Buy' (Target: ₹1,900). While acknowledging near-term cost visibility limits, Citi expects medium-term returns driven by premiumisation, a favourable product mix, and operating ***** Retained 'Outperform' (Target: ₹2,000).