Dalmia Bharat Ltd Q2FY26 – “When a 1939 Cement King Tries to Out-Yoga Ambuja but Trips Over Its Own EBITDA”
1. At a Glance
Dalmia Bharat Ltd (NSE: DALBHARAT) — the self-styled “Concrete Expert of India” — just dropped its Q2FY26 numbers with a bang loud enough to wake even ACC from its quarterly nap. The company reported Sales of ₹3,417 Cr, EBITDA of ₹696 Cr (+60% YoY), and PAT of ₹239 Cr (+413% YoY) — the kind of growth you’d expect only if you discovered a hidden limestone mine in your backyard.
The stock lounges at ₹2,245, giving it a market cap of ₹42,110 Cr, P/E ≈ 37.8x, and a Book Value ₹926 — meaning investors are paying ₹2.4 for every rupee of net worth. Dividend yield? 0.4%, or roughly the price of two samosas per share.
EBITDA per tonne stood at ₹820 while realizations slipped to ₹4,610, proof that Dalmia’s margins are fit but its pricing power went on vacation. Capacity utilization has cooled to 63%, and yet management’s growth obsession remains hotter than a rotary kiln in peak summer. Buckle up — this is a cement veteran that mixes old-school solidity with new-age drama.
2. Introduction
If Indian cement were a Bollywood saga, UltraTech would be the khadoos father, Shree Cement the over-achieving son, Ambuja the NR-return cousin, and Dalmia Bharat — the middle child desperate for attention, tweeting about “green cement” at 2 AM.
Founded in 1939, Dalmia has seen everything — the British Raj, independence, five-year plans, GST, and now sustainability dashboards. Once a sleepy South-Indian manufacturer, it’s now the 4th largest cement maker in India, producing everything from PPC to PSC, and marketing them under multiple brands like Dalmia DSP, Dalmia Supreme, Konark, and InfraPro.
But beneath the corporate yoga lies a twitch: profitability refuses to flex. Despite decades of grinding clinker, ROE languishes at 4.15% and ROCE at 5.58%, numbers that would make even PSU bankers yawn. Management, however, remains in full-on “Vision 2030” mode — planning to triple capacity, double renewables, and hopefully, one day, single-handedly hold India’s carbon neutrality certificate.
So let’s audit the fine print — before another “green” press release blinds us with optimism.
3. Business Model – WTF Do They Even Do?
Dalmia Bharat makes and sells cement. Yes, the grey powder that holds India’s dreams (and many unlicensed balconies) together.
But here’s the fun part — while most cement players simply grind clinker and sell it, Dalmia runs a multi-segment portfolio designed like an MBA case study:
PPC (42%) – Portland Pozzolana Cement, basically cement + fly-ash; cheap, sustainable, and every CSR officer’s favorite.
PCC (31%) – Portland Composite Cement, their rising star for premium markets.
PSC (12%) – Slag-based cement, the eco-friendly kid nobody invites to parties.
OPC (15%) – The classic strongman for big infra projects.
Retail sales form 67% of total volumes, and 23% of that is “premium cement,” marketed with ads promising strength, shine, and marital bliss. Institutional brands InfraPro and InstaPro target government tenders and infra companies that pay late but buy big.
So in essence, Dalmia sells cement to everyone — from your neighborhood mason to NHAI — while preaching green energy and “sustainable growth.” A noble cause, if only the balance sheet didn’t look like it was built from recycled optimism.
4. Financials Overview
Source table
Metric (₹ Cr)
Latest Qtr (Q2FY26)
YoY Qtr (Q2FY25)
Prev Qtr (Q1FY26)
YoY %
QoQ %
Revenue
3,417
3,087
3,636
+10.7 %
-6.0 %
EBITDA
696
434
883
+60.3 %
-21.2 %
PAT
239
49
395
+387.8 %
-39.5 %
EPS (₹)
12.6
2.45
20.9
+413 %
-39.7 %
Commentary: A rare sight in Indian cement — profits that actually grew faster than the PR department’s adjectives. The YoY EBITDA surge is real, thanks to lower fuel costs and higher operational efficiency, even as realizations dipped. QoQ softness reflects seasonal weakness and monsoon lull — apparently, even cement hates rain.
Annualized EPS ≈ ₹50, translating to a forward P/E of ~45x — generous, considering UltraTech delivers double ROE at the same multiple. But hey, optimism sets faster than concrete in this sector.
5. Valuation Discussion – Fair Value Range Only
(a) P/E Approach
FY26E EPS ≈ ₹60
Assign peer multiple range 30x–40x (sector median) → Fair Value Range ₹1,800 – ₹2,400 per share
Industry trades 12–18x band → Equity Value Range ₹38,000 – ₹54,000 Cr ≈ ₹2,000 – ₹2,800 per share
(c) Simplified DCF
Assumptions:
EBITDA CAGR 10 % ( FY26-30 )
WACC 10 %, Terminal Growth 4 % → Intrinsic Range ₹1,950 – ₹2,600 per share
📜 Fair Value Range: ₹1,900 – ₹2,600 (Educational only. Not a buy/sell signal. Consult your inner engineer before acting.)
6. What’s Cooking – News, Triggers & Drama
Dalmia’s last twelve months have been more dramatic than a soap opera filmed in a kiln:
ED Attachment of ₹793 Cr (Apr 2025): Linked to a 2011 CBI case involving old investments in Bharathi Cement. Management says it’s non-operational. Investors said “hmm” and moved on.
West Bengal Incentive Revocation: State pulled back ₹236 Cr subsidies with 8% interest. Dalmia responded with the corporate version of “see you in court.”
Fund Raising Plan (₹4,000 Cr): Approved in May 2025 to fund capacity expansion and buy more solar farms.
Capacity Additions: 4.9 MnT cement and 0.9 MnT clinker added in FY25; 3 MnT greenfield Pune and 3 MnT brownfield Belgaum coming by FY27.
Renewable Push: Target 595 MW green power by FY26 (vs 267 MW now).
Interim Dividend: ₹4/share in Q2FY26 — cement never paid so politely.
