Dalmia Bharat: Can Its ₹2,850 Cr Deal Accelerate Cement Growth Across India?

Synopsis: Dalmia Bharat has strengthened its Central India expansion through a major cement asset acquisition, enhancing capacity, infrastructure, operational efficiency, and long-term growth visibility while also resolving legacy disputes.  

The shares of this mid cap company majorly engaged in the business of Manufacturing and Selling of Cement after the company performed a major acquisition of Rs. 2850 Crores enhancing its capacity and operational efficiency. 

With the market capitalization of Rs. 33,682 Crores, the shares of Dalmia Bharat Ltd were trading at around Rs. 1796 per share which is 28 percent discount from its 52-week high of Rs. 2496 per share and is trading at a P/E of 29 whereas industry P/E stands at 28.3. 

What is the NEWS

Dalmia Bharat Limited, through Dalmia Cement (Bharat) Limited, has signed a Business Transfer Agreement with Jaiprakash Associates Limited and Adani Infra (India) Limited to acquire cement assets located in Madhya Pradesh and Uttar Pradesh for an enterprise value of ₹2,850 crore. The acquisition includes 5.2 MnTPA cement capacity, 3.3 MnTPA clinker capacity, 99 MW thermal power capacity, and railway siding infrastructure at Rewa, Chunar, and Churk.

With this acquisition, Dalmia Bharat’s total cement capacity will increase to 54.7 MnTPA, while ongoing expansion projects at Belgaum, Pune, and Kadapa are expected to further raise capacity to 66.7 MnTPA by Q2–Q3 FY28. The transaction is likely to be completed within two weeks.

The deal also resolves long-pending disputes and arbitral proceedings linked to Dalmia’s earlier 2022 framework agreement with Jaiprakash Associates, which could not be completed after JAL entered insolvency. Following Adani Group’s resolution plan approval under the IBC framework, Dalmia executed a fresh agreement for the assets.

Strategically, the acquisition provides quicker access to high-potential Central India markets compared to a greenfield project, while also offering debottlenecking and brownfield expansion opportunities. The company expects the assets to support stronger EBITDA generation due to better regional pricing, operational synergies, and Dalmia’s cost leadership. Managing Director & CEO Puneet Dalmia said the company’s prior operational familiarity with these plants and their proximity to captive mines would help in faster ramp-up and long-term value creation.

About the Company and Financials

Dalmia Bharat Limited, established in 1939 and headquartered in New Delhi, is among India’s leading cement manufacturers. With an installed capacity of 49.5 MnT, including subsidiaries, the company ranks as the country’s fourth-largest cement producer by capacity. Dalmia Bharat operates across 10 states through 15 manufacturing units and is recognized globally for maintaining one of the cement industry’s lowest carbon footprints. The company is also the first cement manufacturer to join the RE100, EP100, and EV100 initiatives, underlining its commitment to clean energy transition and sustainable business practices.

Year on Year analysis: Revenue from operations has increased from Rs. 4091 Crores to Rs. 4245 Crores, up 3.7 percent. Operating profit has increased from Rs. 793 Crores to Rs. 902 Crores, up 13 percent and net profit has decreased from Rs. 439 Crores to Rs. 394 Crores, down 10 percent 

Quarter on Quarter analysis: Revenue from Operations has increased from Rs. 3506 Crores to Rs. 4245 Crores, up 21 percent. Operating profit has increased from Rs. 602 Crores to Rs. 902 Crores, up 50 percent and net profit has increased from Rs. 128 Crores to Rs. 394 Crores, up 207 percent. 

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Dalmia Bharat: Can Its ₹2,850 Cr Deal Accelerate Cement Growth Across India? appeared first on Trade Brains.