According to reports from Moneycontrol, Geojit Financial Services has issued a buy rating on Dalmia Bharat Ltd. with a target price of ₹2,278. The recommendation is based on the company's strong operational performance and strategic expansion initiatives, as detailed in the research report dated August 10, 2026.
As reported by Moneycontrol, Dalmia Bharat Ltd. demonstrated robust operational metrics with revenue increasing 7% YoY driven by strong volume growth. However, EBITDA declined 9% YoY with margins contracting by 360 basis points due to elevated cost pressures. The company's reported PAT declined 52% YoY primarily due to JAL acquisition-related expenses of ₹182 crore, while adjusted PAT fell 15% YoY due to higher interest and depreciation costs from the debt-funded acquisition.
According to the report, despite gross debt increasing to ₹9,108 crore, management expects net debt-to-EBITDA to remain comfortably below 2x threshold. The company's incentive accruals stood at ₹45 crore during the quarter, with the company reiterating its FY27 incentive guidance of ₹200 crore. Management also expects meaningful volume contribution from Q3 FY27 on the acquired JAL assets.
As reported by Moneycontrol, the company's geographical expansion into central region and target towards becoming a pan India player are expected to support valuation re-rating. Management anticipates that the JAL assets will turn EBITDA-neutral within a couple of quarters and achieve EBITDA per ton in line with Dalmia's average over the next 7-8 quarters. The company's EBITDA margins remained resilient despite elevated input costs, aided by price hikes that helped offset cost inflation.
