Earnings Review
Birla Corp Q1 PAT below view, down on high input, fuel costs
This story was originally published at 16:36 IST on 25 July 2026
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--Birla Corp Apr-Jun consol net profit INR 1.16 bln
--Analysts saw Birla Corp Apr-Jun consol net profit at INR 1.62 bln
--Birla Corp Apr-Jun consol revenue INR 26.46 bln
--Analysts saw Birla Corp Apr-Jun consol revenue INR at 26.54 bln
--Birla Corp Apr-Jun consol PAT INR 1.16 bln vs INR 1.20 bln year ago
--Birla Corp Apr-Jun consol revenue INR 26.46 bln vs INR 24.54 bln year ago
--Birla Corp Apr-Jun consol EBITDA INR 3.65 bln vs INR 3.79 bln yr ago
--Birla Corp Apr-Jun cement sales volume at 5.05 mln tonne, up 5% on year
--Birla Corp Apr-Jun cement ops EBITDA per tn INR 675 vs INR 715 year ago
--Birla Corp: Had to roll back price hikes in June due to high competition
--Birla Corp: Q1 EBITDA per tn down on yr due to higher power, fuel costs
--Birla Corp: Have deferred future price hikes till end of monsoon
--Birla Corp: Cement realisation will remain weak in near term
--Birla Corp: Meaningful rise in cement prices only expected in Dec quarter
By Vidhi Thacker
MUMBAI – Birla Corp. Ltd. reported a fall in its net profit on year for the June quarter owing to higher cost of materials and increased power and fuel costs. While the company's bottom line missed analysts' expectations, its top line was largely in line with expectations.
Birla Corp.'s net profit fell 3% on year to INR 1.16 billion in the June quarter from INR 1.20 billion from the year-ago quarter. Analysts had expected the profit to be INR 1.62 billion. The bottom line fell nearly 61% from the previous quarter.
The company's revenue from operations was INR 26.46 billion, up 8% on year and close to the consensus estimate of INR 26.54 billion. Sequentially, the revenue was down 7%.
The company's total expenses for the June quarter rose 9% on year to INR 25.14 billion. Cost of materials consumed rose 20% on year to INR 4.5 billion. The power and fuel costs were up 22% on year at INR 4.8 billion.
Birla Corp.'s transport and forwarding expense grew 5% on year to INR 5.9 billion for finished products. This was the largest item under the company's expenditure and accounted for 25% of overall costs. The company spent INR 867 million to transfer material internally. Other expenses also rose 21% on year to INR 5.51 billion.
The company's earnings before interest, tax, depreciation, and amortisation were down 3.6% on year at INR 3.65 billion.
The company's revenue from cement sales grew 7.4% on year to INR 25.15 billion but was down 7% on quarter. EBITDA per tonne for the cement division was down 6% on year at INR 675 due to higher power and fuel costs. EBITDA margin for the cement division was down 110 bps on year at 13.6%.
The company's cement sales were up 5% on year at 5.05 million tonnes. Of this, 88% of cement sales were of eco-friendly blended cement. Cement demand gained momentum from the second half of May owing to large government spending on infrastructure but was moderate during the June quarter. Sales of premium products grew 18% on year, led by Perfect Plus, which grew 24% on year.
Birla Corp.'s operating margin for the quarter fell to 13.12% from 14.29% in the year-ago quarter. The net profit margin was down 49 bps at 4.44%.
Price hikes implemented by the company in Apr–May had to be rolled back in June because of intense competition, Birla Corp. said. The company has deferred any future price hikes till the end of the monsoon and expects realisation to remain weak in the near term. It expects a meaningful recovery in cement prices only in the December quarter.
Friday, shares of the company had closed at INR 956.60 apiece on the National Stock Exchange, down 1.8% from Thursday. End
Edited by Rajeev Pai
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