Puneet Dalmia-led Dalmia Bharat Ltd, India's fourth-largest cement maker, has successfully acquired cement assets of bankrupt Jaiprakash Associates Ltd from the Adani Group in a ₹2,850 crore deal. According to company statements, the acquisition will be undertaken through Dalmia Cement (Bharat) Ltd (DCBL), a wholly owned subsidiary, and was executed on May 21, 2026. The deal includes cement plants at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh, along with 99 megawatts of thermal power capacity and railway sidings at Rewa and Chunar. The transaction is part of the broader resolution of Jaiprakash Associates under the Insolvency and Bankruptcy Code (IBC), following approval of the Adani Group's resolution plan by the National Company Law Tribunal (NCLT).
The acquisition will significantly boost Dalmia Bharat's cement capacity by nearly 10% or 5.2 million tonnes per annum (mtpa). As reported by the company, with the acquisition, Dalmia Bharat's cement capacity will increase to 54.7mtpa from 49.5mtpa at the end of 2025-26. Along with ongoing expansion projects at Belgaum, Pune and Kadapa, the company expects to reach 66.7mtpa by December 2027. The assets comprise an integrated unit at Rewa, grinding units at Chunar and Churk, and a blending unit at Sadwa, together aggregating 5.2 MTPA cement capacity and 3.3 MTPA clinker capacity. The company stated that the acquisition provides faster access to central Indian markets compared to a greenfield project and offers scope for further expansion through debottlenecking and brownfield initiatives. Equirus Securities notes that the acquisition provides access to newer markets at reasonable valuations, with the company already having 3 limestone mines within 10-20 kms proximity to the Rewa plant with estimated life of 8-10 years for existing reserves.
According to Anand Rathi analyst Manish Valecha, the deal appears attractively priced at roughly $67 per tonne, making it one of the best deals in the sector. As reported by BigMint data, India's installed cement capacity currently stands at 720mtpa, with UltraTech Cement remaining the largest player at 200mtpa capacity, followed by Adani Cement at 109mtpa. The acquisition comes at a time when several large cement makers are moderating expansion amid rising costs and slowing demand, with companies like Shree Cement and Ambuja either slowing capex or considering doing so due to war-related cost pressures. The assets are expected to support improved efficiency and returns, given the region's pricing environment and Dalmia's cost leadership position. Equirus Securities believes the acquisition is beneficial as it marks Dalmia's entry into the central region as the eighth player, with the company successfully reviving the Murli plant in Maharashtra which was in worse condition compared to JP assets.
For 2025-26, Dalmia Bharat reported strong financial results with a 65% rise in net profit to ₹1,158 crore, aided by better realizations and moderate cost increases. According to company reports, revenue from operations rose about 6% to ₹14,804 crore, though volume growth remained muted at 2%, signalling continuing demand pressure and price-led revenue growth. The company had also flagged war-related cost pressures during its April post-results investor call. Commercial production from the acquired plants is expected to commence in the second quarter of FY27 after integration into Dalmia Bharat's operational network. Equirus Securities expects the company to complete the transaction within two weeks using a mix of debt and internal accruals, with CCI clearance not expected to be an issue as Dalmia was previously granted approval for similar transactions. Multiple brokerages maintain positive ratings on the stock, with Ambit having a 'buy' rating at ₹2,150 target price, HDFC Securities at ₹2,200, Axis Direct at ₹2,430, while BoB Capital Markets has a 'hold' rating at ₹2,110, and Elara Capital has a 'reduce' tag at ₹2,020.
