Dalmia Bharat (DALBHARA IN) – Q1FY27 Result Update – Steady quarter; growth outlook remains strong – BUY
Published on 24 Jul 2026
Management expects a further INR70-80/t increase in input costs in Q2FY27, making sustenance of recent price hikes critical for margin protection. While ongoing cost optimisation initiatives should partially offset cost pressures, timely execution and ramp-up of the announced capacity additions, along with integration of the JAL assets, should drive higher than industry volume growth and support gaining market share over the medium term. DALBHARA's performance will hinge on its ability to integrate JAL assets and higher volumes to distribute incremental costs while continuing to execute its expansion pipeline efficiently. We tweak our FY27/28E EBITDA by +1.8%/-0.8% incorporating incentives and higher costs and expect 10% EBITDA CAGR over FY26-28E. At CMP, the stock is trading at 9.8x EV of FY28E EBITDA. Maintain ‘BUY’ with revised TP of Rs2,079 (earlier Rs2,101) valuing at same 11x EV of Mar’28E EBITDA.
