Dalmia Bharat (DALBHARA IN) – Management Meet Update – Near-term headwinds, but set for good volume growth – BUY
Published on 20 Aug 2026
We recently interacted with the management team of Dalmia Bharat (DALBHARA) to understand its growth strategy and the current demand and pricing scenario. With its entry into central markets and ongoing capacity additions in South/West, we believe DALBHARA is well positioned for strong 11% volume CAGR over FY26-29E. Capacity is expected to reach ~70mtpa by end-FY28, with 5.2mtpa JAL assets, 12mtpa under commissioning in South/West and one expected GU in East. The long-term 110mtpa target remains directional and is expected to be calibrated as per industry demand and leverage. Demand from the Southern region remains good, which may attract further capital, while the Eastern region is expected to witness increased activities over the long term. We expect 14% EBITDA CAGR over FY26-29E. At CMP, the stock is trading at 10.4x/9.4x EV of FY28/29E EBITDA. Maintain ‘BUY’ with revised TP of INR2,173 (earlier INR2,079) valuing at same 11x EV of Sep’28E EBITDA.
