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Informist, Wednesday, Jul. 30, 2025

By Udita S. Jaiswal

MUMBAI – Birla Corp. Ltd. is expected to report substantial growth in its net sales and net profit for the June quarter due to improved infrastructure activity, backed by higher government spending and an on-quarter improvement in individual house building demand, according to analysts. The growth is also likely to be driven by higher prices as the company was able to maintain prices for most of the quarter despite a slight dip due to rains and the quarter-end pressure. 

Birla Corp.'s consolidated net profit for the June quarter is estimated at INR 1.75 billion, up more than fivefold on year but down 32% on quarter, according to the average of the estimates of five brokerages. The highest estimate for the net profit is INR 2.92 billion by YES Securities Ltd. and lowest is INR 1 billion by Anand Rathi Share and Stock Brokers Ltd. The company had reported a net profit of INR 326 million in the year-ago quarter and of INR 2.57 billion in the March quarter.

The company's consolidated net sales for the latest quarter are estimated at INR 25.2 billion, up 15% on year but down 10% on quarter, according to the average of the estimates of five brokerages. The highest estimate for net sales is INR 26.7 billion by YES Securities and lowest estimate is INR 24 billion by Dolat Capital Market Pvt. Ltd.

The company's growth is attributed to a 3-4% on-year increase in demand whereas the company's cement production has risen 7.8% on year. On the volume front, the company is expected to deliver a healthy 10% growth, according to analysts. The demand is expected to grow only in low single digit on year due to the intense heat, the Indo-Pakistan conflict, the early arrival of the monsoon, and sharp price hikes in the South.

The company's earnings before interest, tax, depreciation, and amortisation is expected to be INR 4.58 billion, according to the average of four estimates. The highest estimate for EBITDA is INR 5.9 billion by YES Securities and lowest is INR 3.7 billion by Antique Stock Broking Ltd. The EBITDA growth will be driven by better realisations, strong volumes, and lower operational expense. The company's EBITDA margin is estimated at 17%, up 484 bps on year but down 234 bps on quarter, Dolat Capital said.

At 0934 IST, shares of Birla Corp were at INR 1,517.70 on the National Stock Exchange, up marginally, ahead of the earnings. The stock is up almost 20% since the company announced its March quarter earnings. It rose almost 5% on Tuesday.

Birla Corp. Ltd. will announce its earnings for the June quarter Wednesday. Of 13 brokerage estimates on the company available with Informist, 12 have a "buy" recommendation on the stock with an average target price of INR 1,530 while one has a "hold" recommendation.

Following are the June quarter earnings estimates for Birla Corp. Ltd., in INR million, based on reports from five brokerages in descending order of estimate of net profit:

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Edited by Avishek Dutta

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