Dalmia Bharat’s fortunes tied to pricing in East, while Q3 sees demand improvement

Key Highlights

• Over the medium term, volume growth is likely to be supported by ongoing capacity additions through brownfield and greenfield projects.
• Timely execution of these expansions will be crucial to meet the expected rise in near-term cement demand. Also Read | Cement makers go premium in a commodity market.
• Will it sustain?Capacity roadmapDalmia Bharat’s total installed cement capacity stood at 49.45 million tonnes per annum (mtpa) at the end of Q2FY26, and it is targeting 75 mtpa by FY28.
• However, PL Capital, in a report dated 19 December, noted that the company remains largely a price play in the near term, given that about 60% of its capacity is in the eastern region, including the North-East, and 34% in the southern markets.“We believe Dalmia Bharat, in the near-term, remains a price play on the eastern and southern regions as intense competition from leaders continues to limit market share expansion,” the brokerage said.
• It also cautioned that the company faces the risk of missing its medium-term capacity targets due to issues related to the Jaiprakash Associates deal. Also Read | Can Dalmia Bharat’s capacity play rebuild its growth story?Pricing pressurePricing trends remain subdued and are contingent on demand improvement in the key eastern and southern markets.