Dalmia BharatLtd Q1 FY27 Results (NSE: DALBHARAT)
Signal: Growth reaccelerated
The read
Revenue grew 7% YoY to ₹3,890 Cr and EBITDA margin held at 24.3%, but PAT collapsed 52% to ₹188 Cr due to ₹182 Cr one-time exceptional costs from the Jaypee acquisition (₹177 Cr). Underlying PBT before exceptional fell 13% to ₹436 Cr as higher power/fuel and raw material costs compressed gross margins by 210bps. The operating story is margin resilience despite input cost headwinds, but the bottom line is distorted by non-recurring charges.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,890 Cr | 7.0% | -8.4% |
| EBIT | ₹583 Cr | 3.9% | |
| Net profit | ₹188 Cr | -52.2% | |
| EPS | ₹10.02 | -52.2% | |
| EBIT margin | 15.0% |
P&L walk
Revenue growth of 7% was volume-driven; EBITDA margin held flat at 24.3% as gross margin compression ( -210bps) from higher power & fuel and raw material costs was offset by fixed-cost control. PAT plunged 52% due to a ₹182 Cr exceptional charge for Jaypee acquisition costs; excluding exceptional, PBT before exceptional fell 13%.
Key positives
- Revenue grew 7% YoY to ₹3,890 Cr, accelerating from 3.8% YoY in Q4FY26.
- EBITDA margin held at 24.3% (flat YoY), showing pricing discipline despite input cost pressure.
- Gross margin of 43.2% improved 240bps sequentially from Q4FY26's 40.8%, indicating some seasonal recovery.
- Jaypee acquisition closed on May 29, adding 5.2 MnTPA capacity; integration underway.
Key concerns
- PAT attributable to owners fell 52% YoY to ₹188 Cr due to ₹182 Cr one-time exceptional costs (acquisition + labour code).
- Underlying PBT before exceptional declined 13% YoY to ₹436 Cr, indicating operational deterioration.
- Gross margin contracted 210bps YoY to 43.2% as power & fuel costs (+200bps of sales) and raw material costs (+100bps) rose faster than revenue.
- Other income of ₹139 Cr (55% of PBT) inflated headline PBT; excluding it and exceptional, core operating PBT is weak.
- Pending legal disputes (Bawri Group, WBIDC incentive) remain unresolved with potential financial implications.
Earnings quality: includes other income and an exceptional item
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