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Informist, Monday, Apr. 27, 2026

 

By Ashutosh Pati

 

MUMBAI – While strong growth in sales volume is expected to boost Dalmia Bharat Ltd.'s top line for the March quarter, the company's bottom line is likely to take a hit on a yearly basis owing to the rise in input costs and expenses, according to analysts. However, on a sequential basis, the cement manufacturer's net profit is expected to more than double.

 

Dalmia Bharat is expected to report a consolidated net profit of INR 3.42 billion for the March quarter, down over 21% on year but up 122% from the trailing quarter, according to an average of estimates from 12 brokerages. The company's revenue for the quarter is expected to be INR 43.91 billion, up over 7% on year and more than 25% on quarter, according to the average of estimates.

 

The highest estimate for the company's net profit is INR 4 billion from Systematix Shares and Stocks (India) Ltd. while the lowest estimate is INR 3.01 billion from Equirus Securities Pvt. Ltd. Estimates for Dalmia Bharat's revenue range from a high of INR 45.04 billion from Nirmal Bang Equities Pvt. Ltd. to a low of INR 42.62 billion from Nomura Equity Research.

 

Dalmia Bharat will detail its March quarter earnings Tuesday. Rising input costs remain a key concern for the company, according to brokerages. Its raw material and packaging and forwarding costs per tonne are likely to have risen 2% on year in the March quarter while fixed costs per tonne are seen increasing 7% on year, according to Nomura. The brokerage also expects the cement maker's operating costs per tonne to rise 1% from the year-ago period.

 

Moreover, costs linked to crude oil have surged since the outbreak of the US-Iran war at the end of February, with prices of imported coal up 18% and petroleum coke up 28% over the past month, according to Emkay Global Financial Services Ltd. The brokerage sees the company's costs per tonne rising around 1% on year. Kotak Securities expects them to rise around 2%. Brokerage Motilal Oswal Financial Services Ltd. sees Dalmia Bharat's total expenses rising around 6% on year in the March quarter.

 

However, strong volume growth because of steady demand is expected to support the company's revenue for the reporting quarter. Cement demand firmed up from December and remained strong, rising 8-10% on year, until February. Demand moderated in March to around 5%, resulting in overall demand growth for the quarter being 6-7%, according to HDFC Securities Ltd. Dalmia Bharat's cement volumes are likely to have risen 4-7% on year in the quarter. Most brokerages see the company's sales volume at 9.1 million tonnes.

 

Dalmia Bharat is expected to report earnings before interest, tax, depreciation, and amortisation of INR 8.54 billion for the March quarter, up around 8% on year and nearly 42% sequentially, according to an average of estimates from 11 brokerages. Systematix has the highest estimate for the company's EBITDA at INR 9.10 billion while Nomura has the lowest at INR 7.81 billion.

 

The growth in EBITDA is expected mainly due to an improvement in cement realisations, both on year and on quarter. Kotak Securities and Motilal Oswal see realisations rising around 2% on year. Sequentially, the company's realisations are likely to rise 1-3%, according to most brokerages. Emkay Global sees the EBITDA per tonne rising 5% on year to INR 973 while Kotak Securities estimates it at INR 938 per tonne, up over 1% on year and nearly 14% on quarter "due to a combination of higher realisations and operating leverage".

 

Of the 13 brokerage reports on the company available with Informist, nine have a "buy" or equivalent recommendation on the stock with an average target price of INR 2,485, around 27% higher than its current market price. Two brokerages have a "hold" call while the remaining two say "sell".

 

At 1502 IST, shares of Dalmia Bharat were slightly higher at INR 1,969.50 on the National Stock Exchange. For the December quarter, the company had reported a net profit of INR 1.22 billion on a revenue of INR 35.06 billion. Since then, its shares have fallen 12%.

 

Following are the March quarter earnings estimates, in INR billion, for Dalmia Bharat from 12 brokerages in descending order of the net profit estimate:

Brokerage	Net sales	Net profit	EBITDA
Systematix Shares and Stocks (India) Ltd.	44.50	4.00	9.10
Emkay Global Financial Services Ltd.	44.22	3.80	8.87
Anand Rathi Share and Stock Brokers Ltd.	44.00	3.74
Elara Securities (India) Pvt. Ltd.	43.90	3.50	8.70
JM Financial Institutional Securities Pvt. Ltd.	43.14	3.41	8.53
Prabhudas Lilladher Pvt. Ltd.	43.98	3.39	8.51
Kotak Securities Ltd.	44.09	3.35	8.51
Nirmal Bang Equities Pvt. Ltd.	45.04	3.34	8.18
HDFC Securities Ltd.	43.92	3.26	8.61
Motilal Oswal Financial Services Ltd.	43.19	3.25	8.26
Nomura Equity Research	42.62	3.02	7.81
Equirus Securities Pvt. Ltd.	44.31	3.01	8.85
Average	43.91	3.42	8.54

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Rajeev Pai

 

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