1. Opening Hook
While most of us were busy lighting diyas and burning crackers, Puneet Dalmia decided to light up cement kilns with optimism. The man compared GST cuts to Diwali gifts — except this one might actually last longer than your firecrackers. With a fresh 10% GST cut on cement and a 60% jump in EBITDA, Dalmia’s festive spirit was contagious… until someone asked about volume growth. Spoiler: even Dalmia doesn’t predict that now.
But wait till you see how their “profitable growth” mantra hides a few spicy contradictions. Keep reading — the real cement mix gets thicker later. 😏
2. At a Glance
- Revenue up 11% YoY:CFO swears it’s real demand, not Excel inflation.
- EBITDA grew 60% YoY:Cement turned into money faster than Diwali ads.
- EBITDA/ton ₹1,013:Finally in the four-digit club — no subsidy required.
- Margins at 20.4% (vs 14.1%):Inflation fell, ego rose.
- Net Debt ₹1,602 Cr:Thanks to IEX shares tanking — treasury losses aren’t cemented yet.
- Interim Dividend ₹4/share:A small pat on investors’ backs before the CAPEX storm hits.
3. Management’s Key Commentary
Puneet Dalmia:“The GST cut from 28% to 18% is a long-awaited relief. We’ve passed on the benefit to customers.”(Translation: We had no choice — SEBI and social media both watch now.)
Dharmender Tuteja:“Revenue grew 10.7% YoY, with realization up 7.6% and volumes up 2.9%.”(Translation: We sold slightly more, charged a lot more, and called it strategy.)
Puneet Dalmia:“Our Belgaum and Kadapa expansions are on track.”(Translation: The cement still hasn’t met the builder’s union yet.)
Dharmender Tuteja:“Raw material costs rose only 1%, despite new Tamil Nadu mineral tax.”(Translation: Our Excel sheets can handle even new taxes.)
Puneet Dalmia:“Profitable growth remains our top priority.”(Translation: We don’t chase volume — unless someone else’s market share looks too tempting.)
Dharmender Tuteja:“We’ve achieved 48% renewable energy share.”(Translation: Our electricity bills now feel slightly less sinful.⚡)
Puneet Dalmia:“Variable pay for senior management introduced this year.”(Translation: Finally, salaries will depend on
something other than vibes.😎)
4. Numbers Decoded
| Metric | Q2FY26 | YoY Change | One-Line Analysis |
|---|---|---|---|
| Revenue | ₹3,417 Cr | +11% | Growth without much rain — rare in this industry. |
| EBITDA | ₹696 Cr | +60% | That’s some serious margin cement. |
| EBITDA/ton | ₹1,013 | +55% | Second quarter in a row crossing four digits — party time. |
| EBITDA Margin | 20.4% | +630 bps | Efficiency fairy visited the plant. |
| Raw Material Cost/ton | ₹799 | +1% | Inflation who? |
| Power & Fuel Cost/ton | ₹1,017 | +1% | Pet coke still behaving — for now. |
| Logistics Cost/ton | ₹1,060 | -3.8% | Even diesel costs can’t catch this train. |
| Net Debt | ₹1,602 Cr | Flat | Still below panic zone. |
| RE Capacity (operational) | 93 MW added | – | Solar + cement = sustainability flex. ☀️ |
TL;DR:Cement prices held steady, costs behaved, and accountants smiled.
5. Analyst Questions
Axis Capital:“Why are your realizations lower than the industry?”Management:“Regional mix, segment mix, and planetary alignment.”
Ambit Capital:“What’s this new variable pay system?”Management:“We finally discovered motivation theory.”
Kotak Securities:“Still targeting 75 MTPA by FY28?”Management:“Let’s see what JP’s insolvency gods decide.”
HSBC:“Pet Coke costs rising — what next?”Management:“We’ll try to outsmart OPEC.”
Jefferies:“Any timeline to sell the rest of IEX
