Dalmia Bharat (DALBHARA IN) – Q4FY26 Result Update – Cost-led beat; volume recovery remains the key – BUY
Published on 29 Apr 2026
Management indicated cost inflation of ~INR125-150/t going into Q1FY27, making sustainability of recent price hikes critical for margin protection. Further, subdued volume growth over the past two years suggests loss of market share, highlighting the need for stronger volume traction going forward. While upcoming capacity additions, addition of premium products and stable domestic demand should support growth, we expect DALBHARA to remain play on regional prices especially East/South. DALBHARA’s performance will hinge on its ability to drive profitable volume growth while continue executing cost optimisation initiatives. We tweak our FY27/28E EBITDA by -7.9%/+0.5% to incorporate lower volumes, higher costs and higher prices and expect 11% EBITDA CAGR over FY26-28E in inflationary environment. At CMP, the stock is trading at 11.2x/9.3x EV of FY27/FY28E EBITDA. Maintain ‘BUY’ with revised TP of Rs2,287 (earlier Rs2,250) valuing at same 11x EV of Mar’28E EBITDA.
