Dalmia Bharat Q3FY26 Profit Slips 46% as Cement Price Pressure Weighs on Margins

Dalmia Bharat Ltd, one of India’s top four cement producers, reported a sharp 46 per cent sequential decline in net profit to around Rs 128 crore for the December-ended quarter of FY26, reflecting sustained pressure on cement prices across key markets. The company, promoted by Puneet Dalmia, was impacted mainly by softer pricing in eastern and southern India along with higher operating costs during the quarter.

The cement major had posted a net profit of about Rs 239 crore in the September quarter. Despite the drop in profitability, revenue showed resilience, rising around 3 per cent sequentially to approximately Rs 3,506 crore compared with Rs 3,417 crore in the previous quarter. Sales volumes improved to 7.3 million tonnes, up from 6.9 million tonnes in the July to September period, supported by steady dispatches across regions.

However, the benefit of higher volumes was offset by cost pressures and weaker realisations. Total expenses increased nearly 6 per cent quarter-on-quarter to around Rs 3,362 crore. The company also flagged an additional impact of about Rs 32 crore due to the implementation of new labour codes, as disclosed in its unaudited consolidated financial statements.

Net sales realisation declined by around 4 per cent quarter-on-quarter to roughly Rs 4,794 per tonne during the December quarter, compared with Rs 4,973 per tonne in the previous quarter. Management noted that cement prices corrected sharply beyond the GST rate cut, particularly in its key eastern and southern markets, which directly affected margins.

Industry data indicated that cement prices remained under pressure across regions during the quarter, with sluggish demand in the east and a slowdown in construction activity in the south. Overcapacity in the sector continues to be a concern, with industry utilisation hovering near 70 per cent, limiting near-term pricing power.

Looking ahead, Dalmia Bharat’s management indicated that some price improvement has been visible from January onwards and expressed confidence about a gradual recovery in pricing over the medium term. The company currently has a cement capacity of about 49.5 million tonnes, making it the fourth-largest player in the domestic market, and continues to focus on cost efficiencies and volume growth to navigate near-term challenges.