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Informist, Friday, Jul. 24, 2026

By Vidhi Thacker

MUMBAI – Birla Corp. Ltd. is expected to report a robust on-year growth in its net profit for the June quarter despite modest revenue growth,

according to brokerages tracking the company. The company's earnings will be driven by high cement prices, higher realisations, and organic volume growth. The delayed monsoon and high construction demand is also likely to support the company's revenue growth in the quarter.

The cement manufacturer is expected to report a consolidated net profit of INR 1.6 billion for the June quarter, according to the average of estimates from six brokerages. This is up around 35% on year but down 39% on quarter. The highest estimate for the company's net profit is INR 1.9 billion from 360 ONE Capital Market Pvt. Ltd. and the lowest is INR 1.2 billion from Axis Securities Ltd.

The company's consolidated net sales for the June quarter are expected to be over INR 26 billion, up around 8% on year but down 6.4% sequentially, according to the estimates. The highest estimate for the company's net sales is INR 27.12 billion from Axis Securities and the lowest is INR 26.14 billion from Motilal Oswal Financial Services Ltd.

Birla Corp. is likely to report a healthy volume growth of around 6% for the June quarter, in line with the industry average, due to the delayed onset of the monsoon and a favourable demand base in North India, where demand was affected by the India-Pakistan conflict last year, Elara Securities said. Cement output during April and May grew 8-9% due to increased activity in infrastructure and construction, Axis Securities said. 

The operating cost for the sector was higher in the June quarter due to higher fuel costs. Imported pet coke prices rose to $155-160 and imported coal prices rose to $140-150, during the quarter, Axis Securities said.

Cement companies raised prices during the quarter to manage the sharp increase in fuel costs. The average cement prices in the country rose INR 12 per bag in the June quarter, Motilal Oswal said. Price hike implementation has been better in the southern and eastern region, but has been moderate in the northern, western, and central regions, Axis Securities said.

Cement demand growth for the June quarter continued to be favourable due to government led infrastructure spending in railways, roads, metro projects, urban infrastructure, and industrial capital expenditure. Demand in tier-3 and tier-4 cities remains modest in comparison as also in rural markets. Even though demand was favourable, it was slightly affected by intense heatwaves, lack of availability of labour due to state assembly elections in West Bengal and Tamil Nadu, and due to water scarcity.

Birla Corp.'s earnings before interest, taxes, depreciation, and amortisation are estimated at INR 3.9 billion for the June quarter, according to the average of estimates from four brokerages. This is up almost 2% from INR 3.8 billion in the year-ago quarter. The highest estimate for the company's EBITDA is INR 4.1 billion from JM Financial and the lowest is INR 3.5 billion from Elara Securities (India) Pvt. Ltd.

The company's EBITDA per tonne is expected to be INR 801 for the quarter, broadly stable as price hikes implemented during the quarter offset the impact of higher fuel costs, Motilal Oswal said.

Looking ahead, the chances of any further price hikes remain limited as demand is low in the monsoon, Elara Securities said. Future peak fuel cost inflation is expected to flow through the company's profit and loss statement for next quarter, the brokerage added. Birla Corp. is a cement company with a capacity of 20 million tonnes per annum. It has a significant presence in the jute goods industry as well.

Friday, shares of Birla Corp. closed at INR 956.60 on the National Stock Exchange, down almost 2% from Thursday. Birla Corp. will announce its June quarter earnings Saturday. The stock is down nearly 10% since the company reported its March quarter earnings on May 9.

Out of the nine brokerage reports on the company available with Informist, eight have a "buy" recommendation and one has "hold" recommendation. The average target price for the "buy" recommendations is INR 1,307.75, which is over 36% higher than the current price. The hold recommendation target price is INR 1170.

Following are the Apr-Jun earnings estimates for Birla Corporation from six brokerages in a descending order of net profit, in INR millions:

End

Edited by Pankaj Aher

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