How Is Dalmia Bharat Expanding Its Clinker Capacity and Strengthening Margins in Q2 FY26?
Dalmia Bharat Ltd has taken a major step forward in its capacity expansion journey with the commencement of trial production at its 3.6 million tonnes per annum Umrangso clinker line in Assam during September 2025. This project marks a critical milestone in strengthening the company’s presence across India’s Northeast region.
The Umrangso clinker line is expected to begin commercial production by Q3 FY26, taking Dalmia Bharat’s total clinker capacity to 27.1 million tonnes per annum (MTPA). The expansion aligns with the company’s strategic push to enhance regional supply and operational efficiency while meeting growing market demand.
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Alongside the Assam unit, Dalmia Bharat continues to progress on capacity additions in Belgaum and Pune. The newly commissioned clinker unit supports the company’s medium-term growth ambitions, providing scale advantages and efficient logistics connectivity in high-demand zones.
In Q2 FY26, Dalmia Bharat reported solid operational performance — Sales Volume stood at 6.9 MnT, registering a 3% QoQ growth as demand held steady across core markets. EBITDA rose to ₹696 crore, up 60% year-on-year, while EBITDA per tonne improved 56% YoY to ₹1,013/T, reflecting better cost control and pricing efficiency.
The company’s revenue climbed to ₹3,416 crore from ₹3,091 crore YoY, supported by stable realizations and a broader product mix. The balance sheet remains robust with Net Debt to EBITDA at 0.56x as of September 30, 2025 — among the lowest in the sector.
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Dalmia Bharat also commissioned 93 MW of renewable energy capacity in Q2, taking its total operational renewable portfolio to 387 MW. This supports the company’s long-term sustainability roadmap under its low-carbon strategy and enhances energy cost efficiency.
Management remains optimistic about demand revival post the GST rate cut on cement from 28% to 18%. The lower tax rate is expected to spur consumption, particularly in housing and infrastructure, providing an additional boost to the industry in FY26.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that Dalmia Bharat’s aggressive capacity expansion and consistent margin gains strengthen its position as a leading national cement player. With a strong balance sheet and renewable integration, the company is well-placed to sustain growth momentum through FY26.
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Related Queries
- ✅ How will the Umrangso clinker line impact Dalmia Bharat’s capacity?
- ✅ What are Dalmia Bharat’s Q2 FY26 key financial highlights?
- ✅ How will the GST cut affect cement sector demand?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
