Dalmia Bharat capacity roadmap: 75 MTPA by FY28

Spotlight on capacity moves, including JP assets

Dalmia Bharat has been in focus after references to an acquisition of 5.20 MTPA cement capacity from JP Associates, alongside a broader multi-year expansion roadmap. The company has laid out how its capacity could move from current levels to around 61.5 MTPA by end of Q2 FY28, and then to 75 MTPA by FY28. Management commentary also frames a longer runway, with a stated ambition of 110-130 MTPA by FY31. The update matters because it links capacity additions, capex guidance, and leverage metrics in one operating plan.

Where capacity stands in 2026

For 2026, the cited capacity snapshot shows total cement capacity at 49.5 MnTPA and total clinker capacity at 27.1 MnTPA. Separate disclosures also reference a rise in cement capacity from 38.6 MTPA to 44.6 MTPA in FY24, and an expectation that capacity reaches 49.5 MTPA by FY25 (excluding JP assets). Put together, the data points indicate the company has been in an active build-out phase, and is now sequencing incremental additions into FY27 and FY28.

Project execution updates: Umrangso and other sites

Dalmia Bharat commissioned a new 3.6 million tonne clinker line at Umrangso. In parallel, expansions in Belgaum, Pune, and Kadapa have been cited as progressing. A separate capacity addition plan also mentions 6 MTPA grinding capacity alongside the 3.6 MTPA clinker unit, with these units expected to be commissioned by Q4 FY27. The company has positioned these projects as steps toward expanding into newer regions and supporting a pan-India footprint.

Roadmap to Q2 FY28: 61.5 MTPA, with other estimates higher

Management commentary indicates that from FY27 to Q2 FY28, another 6.00 MnTPA of overall cement capacity expansion is planned, taking capacity to around 61.5 MnTPA by end of Q2 FY28. Other excerpts describe a broader set of projects (including Belgaum, Kadapa and support from Northeast clinker) adding 14.0-14.5 MnTPA and taking total cement capacity to around 63.5-64.0 MnTPA by FY28. These differences likely reflect varying project scopes and definitions used across notes, including whether certain assets or expansions are included.

FY28 and FY31 targets: 75 MTPA, then 110-130 MTPA

The company has reaffirmed that it is on track to reach total cement capacity of 75 MnTPA by FY28. Beyond FY28, management has repeated a long-term ambition of 110-130 MnTPA by FY31 (also referenced as FY30-31 in some notes). The strategy is described as a mix of greenfield, brownfield, and inorganic growth. One referenced initiative is the Jaisalmer project, sized at 7-8 MTPA, which is said to be in active detailing with a final decision expected in the coming months.

Capex guidance: FY26 revised lower, FY27 steps up

Capex commentary spans multiple figures, with a consistent theme of front-loaded spend followed by a larger allocation to meet the FY28 roadmap. During H1 FY26, the company said it incurred capex of about ₹1,189 crore. FY26 capex has been guided at around ₹2,700 crore in multiple notes, revised down from an earlier estimate of ₹4,000 crore due to favourable credit terms negotiated with equipment suppliers and some postponements of non-budget capex to the next year. There are also excerpts indicating FY26 capex spend could be “about” ₹3,000 crore and even “about” ₹4,000 crore, underscoring that the messaging varies across summaries.

Funding, balance sheet and cash generation signals

The expansion plan is described as being funded through internal accruals and debt, with one note sizing the 6 MTPA grinding and 3.6 MTPA clinker plan at ₹3,520 crore. Management commentary also cites annual cash generation of ₹3,000-4,000 crore. On leverage, a key disclosed metric is net debt to EBITDA at 0.6x, described as supported by a strong balance sheet. Separately, borrowings were reported at ₹4,605 crore for long-term debt (up 4% year-on-year) and ₹674 crore for short-term borrowings (up 200%).

Financial snapshot and estimates cited

Alongside operating updates, the material includes revenue figures for 9M FY26 at ₹1,703 crore, with FY26E revenue around ₹2,700 crore and FY27E around ₹4,000 crore. These numbers appear as estimates in the note. A trading snapshot also cites CMP at ₹1,710 and market capitalisation at ₹32,104 crore, while some brokerage notes reference valuation multiples such as 12x-13x EV/EBITDA on FY26E-FY27E.

Key numbers table

Market view and why the update matters

The crux of the update is execution sequencing: clinker commissioning at Umrangso, grinding additions, and regional expansions are being tied to a clear FY28 capacity destination. Capex guidance is also being positioned as flexible, with FY26 spend revised lower due to supplier credit terms and timing shifts, while FY27-28 is framed as the heavier spending period to fund the 75 MTPA plan. For investors, the disclosed leverage level (0.6x net debt/EBITDA) and stated annual cash generation range provide context for how much balance-sheet headroom exists while the build-out continues.

Conclusion

Dalmia Bharat’s latest disclosures place the company’s operating focus on commissioning and scaling capacity through FY28, while keeping a longer-term ambition of 110-130 MTPA by FY31. Near-term attention is likely to remain on execution timelines such as Q4 FY27 commissioning for new units and decision-making on projects like Jaisalmer, alongside how FY26 and FY27 capex ultimately tracks against guidance.