NEW DELHI: Dalmia Bharat Ltd, promoted by Puneet Dalmia and among the country’s top four cement producers, reported a 46% sequential drop in net profit to ₹128 crore for the December-ended quarter (Q3FY26), hurt by weaker cement prices in its key eastern and southern markets and a rise in costs.
The company had posted a profit of ₹239 crore in the September quarter.
Revenue rose 3% sequentially to ₹3,506 crore from ₹3,417 crore in the July-September period. Sales volumes increased to 7.3 million tonnes (MT) from 6.9 MT in the previous quarter.
Expenses climbed 6% sequentially to ₹3,362 crore from ₹3,165 crore. The company said it expects an additional ₹32 crore impact from the implementation of the new labour codes, as disclosed in the notes to its unaudited consolidated financial statements.
Net sales realizations declined 4% quarter-on-quarter to ₹4,794 per tonne in the December quarter from ₹4,973 per tonne in the September quarter, a fall of ₹179 per tonne, the company said in its investor presentation.
“Prices corrected quite excessively beyond the GST rate cut specially in our key markets of east and south,” said Dalmia, managing director and chief executive, during the post-results earnings call.
Last month, the company had flagged “demand weaknesses in key eastern states” at an analyst meet.
“Due to muted demand in the recent past amid GST rationalization, attempts to hike prices in the eastern region did not fructify in December,” PL Capital had said in a note dated 19 December 2025.
Data from BP Equities showed continued pressure on cement prices across regions. In northern India, average prices declined 1.5% month-on-month to ₹335 per bag in December, following a 2% decline in November and a 3.6% drop in October.
In the east, demand remained sluggish, with prices falling 1.8% month-on-month to ₹275 per bag in December, after a 6.7% decline in November and a 3.2% drop in October.
Southern India saw a slowdown in construction activity, with prices down 2.1% month-on-month to ₹320 per bag in December, following declines of 2.4% in November and 4.3% in October.
In the west, prices slipped 1.4% month-on-month to ₹340 per bag in December, matching the decline in November, after a 2.8% drop in October. Central India saw prices fall 2.7% sequentially to ₹325 per bag in December, following declines in the previous two months.
“Price improvement in these markets are being witnessed from January onwards,” Dalmia added.
Overcapacity in the cement sector is expected to persist, with industry utilization hovering around 70%, he added. Despite consolidation, which has kept price growth in the low single digits, Dalmia said he remains confident of price increases in the medium term.
Dalmia Bharat currently has 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 reach 61.5 MT capacity by the second quarter of FY28, with expansion projects underway in Belgaum, Pune, and Kadapa. Civil work at Belgaum is 86% complete, while fabrication and erection are in progress, with major orders placed across all three locations, the company said.
The Belgaum grinding unit will strengthen the company’s presence in southern Maharashtra, while the Pune unit will target untapped western Maharashtra markets. The Kadapa unit is expected to bolster its footprint in Andhra Pradesh, southern Karnataka, and northern Tamil Nadu.
Responding to analyst queries, Dalmia said the company would soon finalize details for a proposed greenfield plant in Jaisalmer, Rajasthan. The project is viewed as a contingency plan if the acquisition of debt-laden Jaiprakash Associates’ cement assets does not materialise.
Adani Enterprises has emerged as the winning bidder for Jaiprakash Associates’ assets.