Dalmia Bharat Q3 profit declines 46% as cement prices fall in east, south
NEW DELHI: Dalmia Bharat Ltd, backed by Puneet Dalmia and among the country’s top four cement manufacturers, reported a 46% sequential decline in net profit. ₹128 crore for the December-end quarter (FY3Q26) suffered from weak cement prices and rise in costs in key eastern and southern markets.
The company has reported profits so far ₹239 crore in the September quarter.
Revenues increased by 3% sequentially ₹3,506 crore ₹3,417 crore during July-September. Sales volumes increased to 7.3 million tonnes (MT) from 6.9 MT in the previous quarter.
Expenses increased by 6 percent respectively ₹3,362 crore ₹3,165 crore. The company said it expects an additional increase ₹32 crore impact arising from the implementation of new labor laws, as disclosed in the notes to the unaudited consolidated financial statements.
Net sales realizations decreased by 4% compared to the previous quarter ₹4,794 per tonne in the December quarter ₹4,973 per tonne in the September quarter ₹179 per tonne, the company said in its investor presentation.
“Prices have experienced quite an extreme correction beyond the GST rate cut, particularly in our key markets in the east and south,” said Dalmia, managing director and chief executive, during the post-results earnings call.
Last month, the company flagged “demand weaknesses in key eastern states” at an analyst meeting.
“Price hike initiatives in the eastern region did not yield results in December due to muted demand amid the recent GST rationalization,” PL Capital said in a note dated December 19, 2025.
Data from BP Equities showed continued pressure on cement prices across regions. Average prices in northern India fell 1.5% month on month. ₹It was 335 per bag in December, following a 2% drop in November and a 3.6% drop in October.
Prices fell 1.8% month-on-month as demand remained weak in the east. ₹It was 275 per bag in December, following a decline of 6.7% in November and 3.2% in October.
South India saw a slowdown in construction activity and prices fell 2.1% month-on-month. ₹It was 320 per bag in December, following declines of 2.4% in November and 4.3% in October.
Prices in the West fell by 1.4 percent monthly ₹340 per bag in December, following a 2.8% drop in October, matching the drop in November. Central India saw prices fall 2.7% sequentially ₹325 per bag in December, following declines in the previous two months.
“We are witnessing price recovery in these markets from January onwards,” Dalmia added.
He added that overcapacity in the cement sector is expected to continue and industrial usage will remain around 70%. Despite consolidation keeping price growth at low single digits, Dalmia said it is confident of price increases in the medium term.
Dalmia Bharat currently has a cement capacity of 49.5 MT, making it the fourth largest player after UltraTech Cement, Adani Group and Shree Cement.
The company is on track to achieve a capacity of 61.5 MT by the second quarter of FY28, with ongoing expansion projects in Belgaum, Pune and Kadapa. The company said that construction work in Belgaum is 86% complete, manufacturing and assembly are ongoing and large orders have been placed at all three locations.
The Belgaum grinding unit will strengthen the company’s presence in southern Maharashtra, while the Pune unit will target the untapped markets of western Maharashtra. The Kadapa unit is expected to strengthen its footprint in Andhra Pradesh, southern Karnataka and northern Tamil Nadu.
Responding to analysts’ questions, Dalmia said the company would soon finalize details for a proposed greenfield facility in Jaisalmer, Rajasthan. The project is seen as a contingency plan in case the acquisition of cement assets of debt-laden Jaiprakash Associates does not materialize.
Adani Enterprises was the firm that won the tender for the assets of Jaiprakash Associates.
