India · Delayed Price · Currency is INR Birla Corporation Earnings Call Transcripts
Fiscal Year 2027
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Trade and blended cement volumes were maximized, but price softness in Central India and rising costs impacted realizations. CapEx and expansion plans remain on track, with cost pressures expected to rise in Q2. No deferral of growth guidance or major strategy shifts indicated.
Fiscal Year 2026
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Reported 4% volume growth, higher blended and premium cement share, and improved Mukutban volumes. CapEx of INR 4,000-4,500 crore is underway, with net debt expected to peak at INR 4,000 crore. Cautious outlook maintained amid volatile costs and macro uncertainties.
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Trade and premium cement sales rose, with premium volume reaching 63% and record Mukutban dispatches. CapEx for nine months was INR 300 crores, net debt INR 2,560 crores, and expansion plans target 27.6 million tons by FY 2029.
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Performance remained resilient despite regional price pressures and operational setbacks, with profitability supported by premium product focus and strong trade segment presence. CapEx guidance was revised down, and demand recovery is expected in H2, with cautious optimism for price improvement.
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Q1 FY2026 saw EBITDA per ton fall to INR 715 due to clinker shortages and subdued central region pricing, but premiumization and blended cement share improved. CapEx guidance and volume growth targets remain unchanged, with no major clinker capacity addition before 2027.
Fiscal Year 2025
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Q4 FY25 saw strong realization and profitability gains, driven by price increases in key regions and high capacity utilization. Major expansion projects are on track, with debt metrics expected to remain healthy and a focus on operational efficiency and long-term growth.
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Mukutban plant has become a key growth driver, offsetting central region pricing pressures and boosting profitability. Premium segment volumes reached 58%, and company-wide utilization averaged 91%. Guidance for 7%-8% H2 volume growth and INR 150 per ton EBITDA increase is maintained.
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Management projects 3%-4% full-year volume growth and INR 170 per ton EBITDA improvement in H2, with cautious optimism amid weak non-trade pricing and regional disruptions. CapEx revised to INR 700 crore, and coal mine operations to start Q1 FY26.
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Q1 FY25 saw lower-than-expected results due to pricing pressures and regional market disruptions, despite strong premium product performance and ongoing cost reduction efforts. CapEx and capacity expansion plans remain on track, with a focus on maintaining financial discipline and brand positioning.