Letter from the
Managing Directors

We, at Dalmia Bharat, believe that growth is not defined solely by what we build, but by the enduring value we create for the nation. This belief continues to guide how we invest, operate and scale. For more than eight decades, the story of Dalmia Bharat has been intrinsically linked to the rise of Bharat, contributing to landmark infrastructure that has shaped its progress. This belief also defines our role today as a sustainable partner to Bharat’s growth journey. From enabling mega infrastructure projects such as the Hirakud Dam, Vidyasagar Setu, and the New Pamban Bridge, to supporting critical developments such as the Dibang Hydropower Project and the Sela Tunnel in Arunachal Pradesh, our work reflects our role in enabling connectivity, resilience, and national progress.

Today’s Bharat has changed. The new and modern Bharat is bolder, faster, self-confident to forge its own path and take on the world on its own terms. And to keep pace with this New Bharat, we too are evolving. We have re-invented how we look, think, and act and this change is reflected in our adoption of a new logo. The new Dalmia Bharat reflects our commitment to align with a dynamic and ambitious nation, so that we can continue to partner with and contribute to its growth for decades to come. What remains unchanged, however, is our promise of superior quality and trust built over generations.

Supportive Macro Environment

India continues to be the fastest-growing major economy in the world, with real GDP for FY 2025–26 estimated at 7.6%. This growth momentum was driven by healthy consumption, modest inflation and strong public infrastructure spending. Furthermore, landmark structural reforms, such as GST rationalisation, further reinforced India’s economic resilience during the year.

Despite evolving geopolitical realities, India’s economic outlook remains robust driven by rising capacity utilisation in manufacturing, healthy financial institutions and corporate balance sheets and sustained momentum in services sector. Additionally, deeper integration into global supply chains and stronger trade partnerships are expected to support growth. However, elevated energy and commodity prices arising out of the West Asia conflict may pose near-term challenges.

FY 2025–26 witnessed a sustained momentum in the sector, with demand expanding by about 6% on a YoY basis. This was supported by record capital expenditure of Rs. 12.2 lakh crore by the central government and over Rs. 6 lakh crore by the state governments. Consistent resilience in urban housing coupled with improving rural demand further supported steady growth in cement consumption.

Looking ahead, we believe cement demand is poised not only to sustain its growth trajectory, but accelerate. Strong domestic fundamentals, sustained public investment and low per capita cement consumption for the country are expected to drive cement demand growth at a CAGR of 7–8% over the medium term.

The structural evolution of the sector is at a transformative stage. While the industry has historically grown at a steady pace, consolidation has accelerated significantly in recent years. The increasing share of leading players reflects a shift towards a more organised, efficient and competitive market, where scale, cost leadership and sustainability have emerged as differentiators. Furthermore, an intensified focus on cost optimisation through digitalisation, adoption of green energy and continuous innovation is expected to support margins in the years ahead.

Well Positioned in an Exciting Opportunity Landscape

Amid a rapidly evolving global landscape, Dalmia Bharat continues to be guided by operational excellence, responsible governance and sustainable value creation. These are not parallel priorities; they are the foundation of how we build and grow. We continue to evolve as an active participant in Bharat’s emergence as a global economic powerhouse.

By aligning our expansion with the momentum of a rising Bharat, we are shaping growth that is responsible in intent, disciplined in execution and sustainable in outcome. During the year, we strengthened our regional presence with the successful commissioning of the 3.6 MnTPA clinker line at Umrongso, Assam. This milestone enables clinker sufficiency for 8 MnTPA of cement capacity in the Northeast, reinforcing our position as the largest clinker-backed cement producer in this strategically important and high-growth market.

Our journey to emerge as a pan-India player remains firmly on course. As part of our Phase II expansion plan, we announced strategic investments of over Rs. 6,800 crore to enhance our cement capacity by 12.0 MnTPA, through capacity additions at Belgaum, Pune and Kadapa. The Pune grinding unit will enable our entry into the new and high-potential Western Maharashtra market, while the other expansions will strengthen our presence across identified white spaces within existing markets. Additionally, we are developing a bulk terminal near Chennai to further accelerate our penetration in the North Tamil Nadu region.

Further, we recently executed a Business Transfer Agreement with Jaiprakash Associates Limited (which has been acquired by Adani Group under the Insolvency & Bankruptcy Code) and Adani Infra (India) Limited on May 21, 2026, for acquisition of Cement Undertaking comprising plants located at Rewa (Madhya Pradesh), Churk, Chunar and Sadwa (Uttar Pradesh) with 5.2 MnTPA cement capacity and 3.3 MnTPA clinker capacity at an Enterprise Value of Rs. 2,850 crore. The asset also entails 99 MW of thermal power capacity and railway siding at Rewa and Chunar, along with a common railway siding at Churk. This acquisition will provide faster access to Central markets compared to a greenfield project and further offers expansion opportunity through debottlenecking as well as brownfield approach. Considering newer markets, relatively better prices and Dalmia Bharat’s proven cost leadership, these assets would augment EBITDA delivery and enhance overall returns for the Company.

Our expanding presence combined with increasing production capacity to 66.7 MnTPA by Q2~Q3 FY 2027-28 and continued emphasis on sustainable solutions, reflects our commitment to supporting Bharat’s infrastructure. As we scale, balance sheet remains central to our strategy. Our Net Debt-to-EBITDA ratio remained modest at 0.46x at the end of FY 2025-26, reflecting the strength of our balance sheet and commitment to long-term value creation.

Performance Driven by Discipline

For us, resilience is not merely about withstanding volatility, it is about strengthening through improving efficiencies, sharpening execution and reinforcing long-term competitiveness. Within this context, our performance reflects both resilience and discipline this year. FY 2025–26 marks Dalmia Bharat achieving highest-ever annual EBITDA of Rs. 3,083 crore, representing a 28% YoY increase. Revenue grew by 6% to Rs. 14,804 crore, while Profit After Tax increased significantly by 65% to Rs. 1,157 crore.

During the year, your Company achieved its highest-ever sales volume of 30 MnT, while delivering a four-digit EBITDA of Rs. 1,027 per ton. This performance was driven not only by improved realisations, but also by our ability to achieve the lowest cost per ton in the last five years. This performance reflects our strategic focus on improving returns from the existing assets and underscores the strength of our operating model, driven by a clear focus on cost optimisation, operational efficiency and disciplined execution across the value chain.

Reimagining the Value Chain

In FY 2025–26, we advanced our journey of embedding digital intelligence across our operations, with a clear focus on scaling adoption and deepening impact across functions. The digitisation of our supply chain and the rollout of automated procurement and vendor management platforms have reduced manual intervention, enhanced transparency, and strengthened control across the value chain. End-to-end digital platforms such as SAP and Ariba are enabling seamless workflows from requisition to payment, improving compliance and supporting scalability.

A more responsive and intelligent logistics network is also taking shape. Digital interventions across order management, freight optimisation, and fulfilment planning are improving efficiency, lowering costs, and enhancing delivery performance. The increasing use of data-driven tools and AI-led solutions is enabling better planning and sharper decision making across logistics and supply chain operations.

Advancing a Greener Future

As a partner in Bharat’s growth story, sustainability remains integral to how we build and scale. Our approach is focused on translating intent into measurable outcomes, with consistent progress across decarbonisation, energy transition and resource efficiency. Our ambition has moved beyond reducing our footprint to redefining cement’s role in a low-carbon future.

During the year, we advanced our transition towards cleaner energy, increasing our renewable energy consumption share to 46% from 36% last year. This was supported by our increase in operational renewable power capacity by 181 MW to 449 MW by the end of this fiscal year.

Our disciplined approach to sustainable growth continues to be reflected in our industry-leading environmental performance. Your Company has one of the lowest carbon footprints globally, at 466 kg CO₂ per tonne of cement, reflecting the strength of our long-term sustainability roadmap. Our contribution to a circular economy is also embedded in our product portfolio, where 82% comprises blended cement. By leveraging industrial by-products such as slag and fly ash, we are reducing clinker intensity, conserving natural resources, and enabling more sustainable construction practices. As we move forward, we remain committed to ensuring that growth is not only faster, but also more responsible and future ready.

Empowering People and Communities

Our people remain at the core of our progress, and this is reflective in one of our strategic priorities to build strong organisational culture. We are nurturing a culture anchored in trust, safety, and continuous development, supported by structured capability-building platforms and a robust learning ecosystem.

Safety continues to be a non-negotiable priority, strengthened through advanced infrastructure, immersive training, and continuous monitoring across our operations. These efforts are enabling us to build a resilient, future-ready, and increasingly diverse workforce aligned with our long-term ambitions.

Our journey is reflected in the communities we serve. Through our flagship ‘Gram Parivartan’ programme, we are enabling sustainable livelihoods, strengthening rural ecosystems, and creating long-term resilience across thousands of households. Our approach goes beyond traditional CSR, focusing on income generation, skill development, water security, and social infrastructure, thereby creating self-sustaining local economies.

Looking Ahead with Responsibility

As we look towards FY 2026-27 and beyond, Dalmia Bharat stands not just as a cement manufacturer but as a responsible and forward-looking partner in India’s growth journey. As India stands at a pivotal moment in its development trajectory, the cement sector will continue to play a critical role in enabling this transformation, and we are focused on strengthening our contribution in the years ahead.

Our emphasis will remain on scaling capacity in a calibrated manner as we progress towards becoming a pan-India player, while enhancing ROCE from our existing assets through strategic interventions. Higher asset utilisation, improving realisations driven by product premiumisation and stronger brand presence, coupled with deeper cost leadership, will continue to be the key drivers of this growth journey.

At the same time, our strategic direction will continue to be guided by a robust balance sheet, supported by healthy cash generation and disciplined capital allocation. We also remain steadfast in our commitment to the highest standards of corporate governance and fostering a strong organisational culture, which will continue to fortify our efforts as we take Dalmia Bharat from strength to strength.

We remain deeply grateful to our employees, partners and stakeholders for their continued confidence and collaboration. Their support remains central to our journey.

We are not only building for today’s demand but for Bharat’s future. As we move forward, our commitment remains clear: to build an organisation that combines strong execution with responsible growth, while contributing meaningfully to the long-term development of Bharat.

Thank you. Jai Hind.