Dalmia Bharat542216Earnings call transcript
Q2 FY27 call: volumes up 3% to 7.1 million tons; Belgaum clinker line lit
Q2 FY27 call: overall volumes rose 3% to 7.1 million tons; ex-Central grew 4% YoY.
By ScoutQuest · · 2 min read
- Q2 FY27 volumes
- overall volumes rose 3% to 7.1 million tons; ex-Central grew 4% YoY
- Capacity target
- Pune and Kadapa expected in FY28, taking capacity to around 67 million tons
- Cost impact
- War-related impact around INR220 per ton on variable cost; packing bags added INR100 per ton; petcoke over $180 per ton
Volume and demand
- Overall volumes rose 3% to 7.1 million tons in the quarter.
- On an ex-Central basis, volumes grew 4% year on year.
- South and West markets saw healthy momentum; East and Northeast were subdued by severe floods and heavy rainfall, with management saying demand is now picking up across these regions.
- Management said cement demand remained robust year on year, helped by government capex spending and relatively low rainfall in several parts of the country.
Capacity update
- The new clinker line at Belgaum has been lit and trial runs started ahead of schedule. Commercial production is targeted before the peak demand season in Q4.
- Pune and Kadapa are progressing as planned and are expected in FY28, taking total capacity to around 67 million tons.
- At Rewa, mining operations have restarted; the clinker line and cement mill are ramping up under trial runs.
Central India
- Management targets 35% to 40% utilization of the Central India assets by end of FY27.
- Q2 saw some initial teething issues while the company builds its network and stabilizes plant operations.
Costs and pricing
- Crude oil prices remain elevated and maritime disruptions continue; international petcoke prices have surged to about over $180 per ton.
- In the first half, war-related impact was around INR220 per ton on variable cost, with packing bags adding another INR100 per ton.
- Prices were steady in South and West, while East pricing was under pressure. September and October saw healthy price increases, helping recover part of the cost inflation.
Management change
- Effective January 1, 2027, CFO Yatin Malhotra will take additional responsibility for sales and marketing, along with finance.
- Navin Tewari, Chief Marketing Officer, will transition to a key adviser role to the MD and CEO on strategic initiatives and projects.
Guidance to track
- Commercial production from Belgaum before the Q4 peak season.
- Pune and Kadapa in FY28, with total capacity around 67 million tons.
- Central India utilization of 35% to 40% by end FY27.
- Management expects premium product share to deepen and is accelerating the rollout of Weather365 into newer markets.
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More numbers
- Overall sales volume growth3%
- Overall sales volume7.1 million tons
- Ex-Central volume growth4%
- Total capacity after Pune and Kadapa67 million tons
- Central India asset utilization target35% to 40%
- War-related variable cost impactINR220 per ton
- Packing bag cost impactINR100 per ton
- International petcoke price$180 per ton
Source: BSE · 28 Oct 2026
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