Dalmia Bharat Q3FY26: PAT up 94%, volumes rise 9.5%

Performance snapshot for the December quarter

Dalmia Bharat reported its results for the quarter ended December 31, 2025 (Q3FY26), showing higher volumes and improved operating metrics despite a mixed pricing environment in some regions. Cement volumes rose 9.5% year-on-year (YoY) to 7.3 million tonnes, helped by a pickup in demand after the monsoon and the festive season. Revenue from operations increased 10.2% YoY to ₹3,506 crore, indicating that volume growth more than offset pricing pressure highlighted by management. EBITDA rose 17.8% YoY to ₹602 crore, reflecting what the company described as operational efficiencies and cost discipline. Profit after tax (PAT) nearly doubled, up 93.9% YoY to ₹128 crore for the quarter.

Volumes outpaced industry expectations

The company’s Q3 volume growth of 9.5% YoY to 7.3 million tonnes was positioned as ahead of industry growth estimates cited in the provided material. Another data point in the same text describes volumes as a “substantial 10% increase” from 6.7 million tonnes last year to 7.3 million tonnes, pointing to the same underlying improvement. Stronger post-monsoon construction activity and festive-season demand were cited as key supports. Management also flagged demand recovery as an important positive signal going into subsequent quarters.

Revenue growth amid regional pricing pressure

Revenue from operations rose 10.2% YoY to ₹3,506 crore. The revenue figure marginally exceeded a consensus estimate of ₹3,456 crore mentioned in the text. However, management commentary during the January 21, 2026 earnings call noted that revenue rose about 10% YoY “despite pricing pressures in key regions.” The same call highlighted that realised prices fell about 4% quarter-on-quarter (QoQ), especially in East and South India, which shaped the near-term tone on pricing.

EBITDA, margin and estimates: a mixed picture

EBITDA increased 17.8% YoY to ₹602 crore, but this was slightly below a poll estimate of ₹619 crore cited in the article input. EBITDA margin was reported at 17.2%, improving from 16% last year, but missing a projected 17.9%. EBITDA per tonne improved to ₹823, up 7.6% YoY, indicating better unit economics even as pricing softened sequentially. The provided content also notes that margins were pressured by the QoQ price drop and higher other expenses.

PAT surged, but missed expectations

PAT for Q3FY26 rose 93.9% YoY to ₹128 crore. At the same time, the text notes that net profit was below an analyst expectation of ₹169 crore, suggesting that the market had priced in a higher bottom-line delivery. For the nine-month period, PAT surged 193% YoY to ₹762 crore, with the company attributing the improvement to higher volumes, improved margins, and tighter cost control.

Cost discipline and renewable energy progress

On the earnings call, management pointed to structural cost reduction of about ₹45 to ₹50 per tonne achieved so far, with more initiatives planned. Specific cost lines were also shared: raw material cost per tonne of production rose only 2% YoY to ₹780 per tonne, despite an additional levy referenced in the text. Power and fuel cost per tonne increased 1% YoY to ₹1,019 per tonne, despite cost headwinds. The company also said it achieved a renewable energy (RE) share of 48% on a consumption basis during the quarter, supporting its cost and sustainability agenda.

Balance sheet remains comfortable

Dalmia Bharat reported net debt to EBITDA at 0.60x as of December 31, 2025, which the company described as comfortable leverage. The low leverage metric was presented as supportive of the company’s flexibility, including the ability to pursue its growth plans while managing near-term market volatility.

Stock reaction: higher trade after results and call

On January 21, Dalmia Bharat was reported trading at ₹2,229.10 on the NSE, up 1.72% or ₹37.70 from the previous close. The stock opened at ₹2,193 and moved between an intraday high of ₹2,234.40 and a low of ₹2,171.10. The 52-week high was reported at ₹2,496.30 and the 52-week low at ₹1,601. The input also states a dividend yield of 0.40%, with a quarterly dividend of ₹2.23 per share. Separately, the text mentions the stock “currently trading 1.1% higher at ₹2,215” and that the shares delivered about a 25% return over the past 12 months.

Key numbers table

What management emphasised, and what markets will track

Management highlighted strong demand recovery and reiterated confidence in “sustainable and profitable growth,” while staying cautious on near-term pricing due to sector dynamics and overcapacity referenced in the material. The operational narrative rested on volumes, cost control, and structural savings per tonne, alongside a higher renewable share that can help reduce volatility in power and fuel costs. The miss versus some profitability expectations suggests that investors and analysts may focus on how quickly regional pricing stabilises and how other expenses trend in coming quarters.

Conclusion

Dalmia Bharat’s Q3FY26 results combined strong volume-led growth with improved EBITDA per tonne and a sharp YoY increase in PAT, even as sequential pricing softened in parts of East and South India. With net debt to EBITDA at 0.60x and ongoing cost initiatives, the next key updates are likely to come through subsequent quarterly results and further commentary on pricing and cost reductions.