Dalmia Bharat is actively working on new projects to reach its 75 million tonnes capacity milestone by FY28, reinforcing its ambition to emerge as a pan-India cement player.
From a modest start in 1939 with just 250 tonnes per day capacity in Tamil Nadu, the company has scaled to nearly 50 million tonnes and now serves over 23 states. The company said that all announced projects in the South and West are progressing well, with expansion forming a key strategic priority.
Strong reserves support long-term growth
Managing Director and Chief Executive Officer Puneet Dalmia told analysts at the latest earnings call that the company’s resource base remains a key strength, with 2.7 billion tonnes of limestone reserves across operational plants. In addition, virgin mines across regions are expected to support future geographic expansion, with ongoing efforts to augment reserves further.
Execution on track across key projects
Providing operational details, CFO Dharmender Tuteja said ongoing expansion projects at Belgaum, Pune and Kadapa are expected to take total cement capacity to 61.5 million tonnes over the next 18–20 months.
He noted that civil work at the Belgaum project has been completed and electrical and instrumentation work has commenced, with commissioning likely ahead of the earlier schedule. At Kadapa, ordering for key equipment has already been completed, with commissioning targeted between Q2 and Q3 of FY28. Progress at the Pune grinding unit and Chennai bulk terminal is also on track.
Profitability and ROCE take centre stage
Dalmia emphasised that maximising return on capital employed (ROCE) has become a top management priority, with significant bandwidth being deployed to improve asset efficiency.
He added that the company remains focused on profitable volume growth rather than chasing scale alone. Efforts to improve the quality of sales in select markets have already begun to reflect in profitability, even as it works toward ramping up utilisation across new capacities.
Near-term disruption, but steady progress
Dalmia acknowledged that an unexpected breakdown in East India impacted volumes during the quarter. However, he pointed to new lines commissioned in the Northeast and the upcoming Belgaum facility as key growth drivers, with a clear focus on scaling utilisation quickly.
Disciplined capex with balance sheet focus
On capital allocation, Tuteja said the company incurred a cash outflow of around ₹3,200 crore on project capex over the past two financial years.
For FY27, Dalmia Bharat has guided for total capex of ₹3,200–₹3,400 crore, of which ₹2,200–₹2,300 crore will be directed toward ongoing expansion projects. Tuteja reiterated that the company expects to maintain an annual capex run rate of ₹3,000–₹3,500 crore over the next three years.
Dalmia underlined that the balance sheet remains a key strength and that the company will continue to pursue expansion while maintaining financial prudence and high standards of corporate governance.
Renewable push gains pace
Tuteja added that the company is scaling up its renewable energy capacity, having added around 180 MW during the year. An additional 128 MW is set to be commissioned soon, taking total renewable capacity to 576 MW and increasing the share of green energy in overall consumption.
Scaling up with discipline
Dalmia Bharat’s strategy reflects a calibrated approach, aggressive expansion backed by strong reserves, disciplined capital deployment and a clear focus on improving returns.
As Dalmia and Tuteja outlined, the company’s next phase of growth will hinge on execution, faster capacity utilisation and sustained focus on profitability, even as it works toward its 75 million tonne milestone.