Strong overall performance: Central assets to add value over long term; maintain Buy and TP of INR2,500 as we roll forward our valuation

Research evidence excerpt

Strong overall performance: Central assets to add value over long term; maintain Buy and TP of INR2,500 as we roll forward our valuation

Global Markets Research

Dalmia Bharat DALB.NS DALBHARA IN 27 July 2026

EQUITY: CONSTRUCTION MATERIALS

RatingStrong overall performance Remains Buy

Target priceCentral assets to add value over long term; maintain Buy Remains INR 2,500

and TP of INR2,500 as we roll forward our valuation

Closing price INR 1,811 24 July 20261QFY27 results: Higher volume and pricing deliver EBITDA beat

1QFY27 EBITDA of INR8.0bn came in above our forecast and the Bloomberg consensus Implied upside +38.0%estimate by 19% and 9%, respectively. The beat was on account of better realizations and

volume growth; blended realization improved 6% q-q vs our forecast of +3% q-q. Dalmia Market Cap (USD mn) 3,518.1

reported 9% y-y volume growth, 3% above our estimate. Operating costs/t came in largely ADT (USD mn) 6.9

in line with our estimate. As a result, 1QFY27 EBITDA/t improved INR34/t to INR1,059/t

vs our estimate of a INR106/t q-q decline.

Relative performance chart2QFY27F: Costs to rise further; we forecast ~INR150/t q-q EBITDA decline

We expect 2QFY27F realizations to decline 1% q-q, as historically 2Q is seasonally weak.

Management indicated a INR70-75/t q-q increase in operating costs/t in 2Q, partly due to

the West Asia conflict; we model a INR118/t q-q increase in operating cost/t in 2Q. We

expect 4% y-y grey cement volume growth to 7.2MT in 2Q. Thus, we expect EBITDA/t to

decline ~INR150/t q-q to INR907/t.

Central assets: Long-term value accretion with near-term margin dilution

We view Dalmia’s recently acquired Central assets as strategically value accretive over

the long term. The company’s ability to commission the 2.5MT GU within ~50 days