Dalmia Bharat (DALBHARA IN) – Q2FY27 Result Update – Weak quarter amid costs inflation & demand disruption – BUY
Published on 27 Oct 2026
Q2FY27 was a challenging quarter for DALBHARA, with heavy rainfall and floods disrupting demand across East and Northeast markets. While a recovery in these regions remains important, the company’s expanding capacity base, including Central India assets, Belgaum, Pune and Kadapa, should strengthen its pan-India presence and support long-term growth. Targeted cost savings of ~INR75/t in FY27 provide an additional lever to mitigate cost pressures, while successful integration of new assets and a gradual improvement in capacity utilisation will be key to driving sustainable earnings growth. We cut our FY28/29E EBITDA by 2.3%/1.2% incorporating higher costs and expect 11% EBITDA CAGR over FY26-29E. At CMP, the stock is trading at 9.9x/8.9x EV of FY28/29E EBITDA. Maintain ‘BUY’ with revised TP of Rs1,970 (earlier Rs2,015) valuing at same 11x EV of Sep’28E EBITDA.
