Dalmia Bharat Ltd expects input costs for the cement industry to soften in the coming quarters as tensions in West Asia ease, according to the company's chief financial officer Dharmendra Tuteja during the 13th annual general meeting on Tuesday. As reported by Mint, Tuteja said the ongoing US-Iran peace talks and easing of tensions in West Asia were positive developments, though the impact of the war will continue to be felt through April-September before moderating. The company had previously flagged war-related cost pressures during Q4FY26 earnings, warning that costs could rise by ₹125-150 per tonne in the April-June quarter due to higher fuel, power, logistics and packaging expenses.
According to Mint, brokerage firm Equirus Securities expects Q1FY27 to see around 7% volume growth year-on-year, indicating a better than expected quarter. In FY26, the company's net profit jumped more than 65% to ₹1,158 crore on the back of better realizations and moderate cost rise, compared to ₹699 crore in FY25. Revenue from operations increased about 6% to ₹14,804 crore in FY26, while volume growth remained muted, rising 2% to 30 million tonnes. Fuel costs, including pet coke prices, have declined to $133-134 per tonne range in the June quarter from the earlier peak of $155-160 per tonne.
As reported by Mint, the company is investing more than ₹10,000 crore to expand capacity to 66.7 mtpa by FY28 from 49.5 mtpa currently. Managing director Gautam Dalmia announced strategic investments of over ₹6,800 crore to add another 12 million tonnes per annum cement capacity at Belgaum, Pune and Kadapa to serve white spaces in south markets and penetrate western markets. Combined with the ₹2,850-crore acquisition of Jaiprakash Associates Ltd cement business and ₹550 crore for refurbishment, the company's committed capital outlay exceeds ₹10,000 crore. The expansion will position Dalmia Bharat as a truly pan-India player beyond its traditional southern, eastern and northeastern markets.
According to Mint, India's installed cement capacity currently stands at about 720 mtpa, with UltraTech Cement leading at 200 mtpa, followed by Adani Cement (including Ambuja, ACC) at 109 mtpa and Shree Cement at 65.8 mtpa. Dalmia Bharat remains the fourth-largest player in the country. The company's installed capacity is expected to rise to 60.7 mtpa by the end of FY27 following JAL asset integration and commissioning of Belgaum and Pune projects, with capacity increasing to 66.7 mtpa in FY28 after Kadapa plant commissioning.
