Dalmia Bharat reports 34.5% YoY decline in Q3 FY25 EBITDA amid price challenges

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Limited, one of India’s top cement manufacturers, faced a challenging third quarter in fiscal year 2025, as evidenced by its consolidated financial results. The company’s performance, shaped by a dip in demand and persistent pricing pressures, offers a snapshot of broader trends in India’s construction and cement sectors. However, its continued focus on projects and underscores its long-term growth strategy.

What do Dalmia Bharat’s Q3 FY25 results reveal about India’s cement sector?

Dalmia Bharat’s financial results for Q3 FY25 reveal the extent of challenges facing the cement industry. The company’s income from operations for the quarter declined by 11.7% year-over-year (YoY) to ₹3,181 crore, compared to ₹3,604 crore in Q3 FY24. Profit after tax (PAT) dropped sharply by 75.2% YoY to ₹66 crore, primarily driven by weak pricing conditions and lower volumes.

Sales volume fell by 2% YoY to 6.7 million tonnes (MnT), reflecting subdued demand in key markets. The EBITDA margin also shrank significantly, with earnings before interest, taxes, depreciation, and amortization (EBITDA) declining by 34.5% to ₹511 crore. These results highlight the sector’s struggles with pricing pressure and increased input costs.

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How is Dalmia Bharat managing economic headwinds?

Despite the downturn, Dalmia Bharat has continued to invest in its renewable energy projects and production capacity, laying the groundwork for future growth. During the quarter, the company executed renewable energy agreements under a Group Captive model for an additional 21 MW of power, adding to the 278 MW agreements finalized earlier in FY25.

This effort aligns with the company’s RE100 goal to transition entirely to renewable energy by 2030. Additionally, a 4 MW solar power plant commissioned in West Bengal boosted the company’s operational renewable energy capacity to 252 MW.

Puneet Dalmia, Managing Director and CEO, expressed optimism about India’s economic trajectory. “The government’s focus on investment-led growth and the country’s structural economic drivers make me confident in the cement sector’s recovery,” he said.

What are Dalmia Bharat’s growth and sustainability priorities?

Dalmia Bharat’s capacity expansion plans remain a key priority despite short-term financial pressures. The company recently increased its clinker production capacity by 0.9 MnT through debottlenecking initiatives in Odisha and Andhra Pradesh. This brings the company’s total clinker capacity to 23.5 MnT.

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In addition to capacity enhancements, Dalmia Bharat has made significant strides in sustainability. The company was awarded an ESG rating of 78 by ICRA, positioning it among India’s leaders in sustainable practices within the cement sector. Dalmia Bharat has also been recognized with the National Energy Conservation Award and Tamil Nadu’s Best Employer Brand Award, reflecting its commitment to operational excellence and workforce development.

How does the Q3 FY25 performance reflect broader industry trends?

The challenges faced by Dalmia Bharat mirror broader trends in the Indian cement industry. A combination of subdued demand and pricing pressures weighed heavily on margins, exacerbated by higher raw material and transportation costs.

According to Chief Financial Officer , “Cement demand growth in Q3 fell short of expectations. However, with prices showing signs of recovery, we are confident about a stronger performance in upcoming quarters.”

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The company’s net debt to EBITDA ratio remained steady at 0.55x, indicating a robust financial position to support ongoing expansion plans.

What does the future hold for Dalmia Bharat and the cement industry?

As the Indian economy gears up for recovery, Dalmia Bharat’s focus on renewable energy and production capacity enhancements positions it to capitalize on future growth. With cement prices beginning to stabilize and demand gaining traction, the company is optimistic about improved performance in the final quarter of FY25.

Furthermore, Dalmia Bharat’s investments in clean energy and sustainability align with global trends toward decarbonization, making it a frontrunner in the transition to green manufacturing.


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