Dalmia Bharat (DALBHARA IN) – Event Update – Reclaiming the asset, Central market entry – BUY
Published on 22 May 2026
Dalmia Bharat (DALBHARA) has executed a business transfer agreement with Jaiprakash Associates Ltd (JAL; acquired by Adani Group under IBC) & Adani Infra (India) Ltd for acquisition of 5.2mtpa cement assets in Central India at an EV of INR28.5bn. After pursuing the JAL assets over 3.5 years, DALBHARA has finally carved out deal from the assets acquired by Adani group under IBC. This transaction includes 5.2mtpa cement capacity, 3.3mtpa clinker capacity, 99MW thermal power capacity & railway siding infrastructure across Rewa (MP), Chunar, Churk and Sadwa (UP). The acquired assets also provide debottlenecking opportunity of ~1.5-2mtpa cement and ~0.5-0.7mtpa clinker over time. Post acquisition, DALBHARA’s cement capacity will increase to 54.7mtpa from c. 49.5mtpa and further to 66.7mtpa by Q3FY28 led by ongoing expansions at Belgaum, Pune and Kadapa. Mgmt. highlighted that the assets are well known to Dalmia due to the earlier tolling arrangement with JAL, which should support faster integration and ramp-up. However, earlier in FY24 during tolling, the ramp up was limited & profitability was low. At CMP, the stock is trading at 11.4x/9.1x EV of FY27/28E EBITDA. Maintain ‘BUY’ with revised TP of INR2,235 (earlier INR2,287) valuing at same 11x EV of Mar’28E EBITDA due to higher capex and debt levels.
