- Dalmia Bharat Q4 FY25 Results: Growth Plans, Efficiency Moves, and Market Strategy
- Economic Trends and Cement Demand
- Industry Trends and Dalmia Bharat’s Position
- Capacity Additions and New Projects
- Sales, Revenue, and Volume Performance
- Cost Control and Efficiency Moves
- Profit Numbers
- Government Incentives and Subsidies
- Debt and Financial Planning
- Legal and Tax Updates
- Strategic Updates and Brand Moves
- Regional Performance
- Looking Ahead: FY26 and Beyond
Dalmia Bharat Q4 FY25 Results: Growth Plans, Efficiency Moves, and Market Strategy
Dalmia Bharat shared its Q4 FY25 results in April 2025. The company showed a steady performance in a challenging market. It also shared future plans to expand capacity, reduce costs, and grow in key regions. Let’s go over what the management discussed.
Economic Trends and Cement Demand
In the last quarter of FY25, India saw a rise in economic activity. This helped cement demand. Dalmia Bharat mentioned that the Indian economy could grow around 6.5% in FY25. While the global market stays uncertain, India benefits from strong local demand and manufacturing.
Cement demand grew by 7-8% year-on-year (YoY) in Q4 FY25. This growth was mainly due to higher government spending and post-festival construction. For the whole year, cement demand went up by 4-5%, which was better than the 3-3.5% seen in the first nine months.
Looking ahead, cement demand in FY26 is expected to grow by another 7-8%, in line with GDP growth.
Industry Trends and Dalmia Bharat’s Position
The cement industry is going through a lot of change. Big players are getting bigger. In FY22, the top four companies controlled 47.5% of the market. By FY25, that rose to 57%. Over 52 million tons of cement capacity changed hands last year. This figure could go up to 60% soon.
Dalmia Bharat is playing an active role in this shift. It wants to grow fast and enter new markets. The company is clearly focused on increasing its market share.
Capacity Additions and New Projects
What Was Completed in Q4
Dalmia Bharat completed two new grinding units:
- A 2.4 MTPA unit in Lanka, Assam
- A 0.5 MTPA unit in Bihar
These projects help the company improve its supply in key regions.
New Projects Announced
Dalmia Bharat plans to:
- Expand the Belgaum plant in Karnataka by 3 MTPA
- Set up a new 3 MTPA grinding unit in Pune, Maharashtra. This will be ready by the end of FY27.
Ongoing Work
The clinker unit at Umrangso in the Northeast is almost ready. It will be up and running by Q2 FY26. Once done, Dalmia Bharat will become the largest cement producer in Northeast India.
Capacity Overview
- Total cement capacity: 49.5 MTPA
- Current clinker capacity: 23.5 MTPA
- Post-Umrangso (FY26): Clinker capacity to rise to 27.1 MTPA
Capital Spending
- FY25 capital expenditure (CAPEX): ₹2,664 crores (plus ₹98 crores in renewable energy)
- FY26 CAPEX plan: ₹3,500 crores. This includes spending on Belgaum, Pune, Umrangso, land, and maintenance.
Sales, Revenue, and Volume Performance
Volumes in Q4 FY25
- Total sales: 8.6 million tons, a drop of 3% YoY.
- But if we remove tolling volumes from Jaiprakash (JP), volumes from Dalmia Bharat’s own plants grew 4% YoY.
FY25 Volume and Revenue
- Total volumes for the year: Up 2% YoY.
- Dalmia’s own plant volumes: Up 6% YoY.
- Q4 revenue: ₹4,091 crores (down 5% YoY but up 28.6% quarter-on-quarter)
- FY25 revenue: ₹13,980 crores (down 4.8% YoY)
Prices were flat overall in Q4. Gains in eastern markets were offset by weaker pricing in the south.
Product and Trade Mix
- Trade sales: 67%, slightly higher than last year’s 65%.
Cost Control and Efficiency Moves
Raw Materials
- Q4 cost per ton: ₹743, which is 4% lower than last year.
- But Tamil Nadu introduced a new mineral tax of ₹160 per ton on limestone, which will cost the company around ₹130 crores per year.
Power and Fuel
- Q4 power and fuel cost per ton: ₹945, 7% lower YoY.
- Dalmia Bharat aims for 595 MW RE capacity by FY26 (currently 267 MW).
Logistics
- Q4 logistics cost per ton: ₹1,135, down 2% YoY.
- Direct deliveries increased to 61% (from 56% YoY).
- Lead distance dropped to 277 km (from 289 km).
Cost Reduction Plan
- Dalmia Bharat wants to reduce costs by ₹150–200 per ton in two years.
- Half of that saving is expected in FY26.
- Plans include:
- Using more renewable energy
- Better heat and power usage
- Improved logistics
Profit Numbers
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
- Q4 EBITDA: ₹793 crores, up 21% YoY
- EBITDA per ton: ₹926
- Margin: 19.4% (up by 420 basis points)
- FY25 EBITDA: ₹2,407 crores, down 9% YoY
Net Profit (PAT)
- FY25 PAT: ₹699 crores, down from ₹853 crores in FY24
Depreciation and Dividend
- Q4 depreciation: ₹314 crores (4% lower YoY and 14% lower QoQ)
- FY26 depreciation expected to be around ₹1,300 crores
Government Incentives and Subsidies
Dalmia Bharat continues to receive government incentives:
- Q4 FY25 incentives: ₹99 crores accrued, ₹119 crores collected
- FY25 total: ₹336 crores accrued, ₹307 crores collected
- FY26 estimate: ₹300 crores in incentives
Receivables from the government stand at ₹743 crores.
These benefits are expected to last:
- 15–20 years in the Northeast
- Till this year for Bihar (except the new Bihar unit)
Debt and Financial Planning
Debt Position
- Gross debt at the end of FY25: ₹5,279 crores (₹629 crores higher than FY24)
- Net debt: ₹716 crores
- Net Debt/EBITDA: 0.3x
Capital Strategy
- Dalmia Bharat wants to keep Net Debt/EBITDA under 2x while it scales to 75 MTPA capacity
- The company’s stake in Indian Energy Exchange (IEX) is now a short-term investment and will be sold soon
Legal and Tax Updates
- The Tamil Nadu limestone tax remains a concern, and talks are ongoing with the government.
- Due to old losses, cash tax outgo in FY26 will stay low.
Strategic Updates and Brand Moves
Branding and Dealer Network
- Dalmia Bharat has strengthened its distribution network.
- It is now promoting itself as “Dalmia Cement as RCF Expert.”
Cement Type Strategy
- 84% of its output is blended cement.
- The company wants to reach 100% blended cement by 2026.
Safety and Management
- A new safety excellence program has started.
- Dalmia Bharat is working on a flatter organizational structure and future leadership planning.
Expansion Plan
- Utilization is at around 60% today.
- Future expansion will depend on market demand and cost advantages.
Regional Performance
South India
- Cement prices are finally recovering after over a year of decline.
East and Northeast
- Northeast is growing faster than the national average.
- Dalmia Bharat is now the top player in the region.
Price Movements
- After Q4, prices rose by ₹10–15 per ton in most areas.
- South India saw higher price hikes.
Looking Ahead: FY26 and Beyond
What to Expect
- Sales volumes in FY26 should grow in line with or better than the industry average.
- The company plans to cut costs by ₹150–200 per ton in two years (half of that in FY26).
- FY26 CAPEX will be around ₹3,500 crores.
- More expansion details will come in the next update.
- New capacity will be added based on demand and location benefits.
Dalmia Bharat is taking a balanced approach. It is growing fast, but also keeping an eye on costs and debt. The company is using government incentives and market consolidation to its advantage. New projects in key areas like Maharashtra and the Northeast will help the company grow faster.
The focus is clear — expand smartly, reduce costs, and keep financials strong. With a goal to reach 75 MTPA capacity by FY28, Dalmia Bharat looks set for steady growth.
Frequently Asked Questions (FAQs)
Q: What is Dalmia Bharat’s current cement capacity?
A: As of FY25, it is 49.5 million tons per annum (MTPA).
Q: How much is Dalmia Bharat investing in FY26?
A: The company plans to spend around ₹3,500 crores on projects and improvements.
Q: Is Dalmia Bharat affected by any legal issues?
A: ₹793 crores have been attached by the ED, but it hasn’t impacted daily operations.
Q: What’s the goal for renewable energy use?
A: Dalmia Bharat aims to reach 595 MW RE capacity by FY26.
Q: Where is Dalmia Bharat focusing its expansion?
A: New markets like Pune in Maharashtra and more presence in the Northeast.
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I’m Rahul Chaudhary, and I write about everything related to the Share Market. From Stock Trends and Share Prices to the Latest News and IPO Updates, my articles aim to provide you with valuable insights to help you navigate the world of investing. Stay tuned for expert tips and updates to keep you informed!
