Dalmia Bharat Q2 FY27 Results (NSE: DALMIASUG)
Signal: Margin expansion
The read
The key inflection is margin-led rather than top-line-led: revenue grew 7.3% YoY to ₹1,060.81 crore, but EBITDA rose 88.6% to ₹143.25 crore and EBITDA margin expanded 627bps to 13.50%, driven primarily by sugar segment profitability; the sustainability of the recovery will depend on whether the 390bps gross-margin expansion persists.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,060.81 Cr | +7.3% | +25.1% |
| EBIT | ₹108.09 Cr | +108.9% | |
| Net profit | ₹68.4 Cr | +193.4% | |
| EPS | ₹8.45 | +193.4% | |
| EBIT margin | 13.50% |
P&L walk
Revenue increased to ₹1,060.81 crore, +7.3% YoY and +25.1% QoQ, while gross margin expanded to 22.89% from 18.99% YoY and EBITDA margin rose to 13.50% from 7.23%; sugar profitability was the main operating inflection, although finance cost increased 52.2% YoY to ₹15.57 crore.
Segments
Sugar drove the consolidated operating recovery: its result rose to ₹77.85 crore from ₹19.32 crore YoY despite revenue declining 3.0%, while distillery revenue grew 30.0% and result rose 34.0% to ₹28.37 crore but softened from ₹35.29 crore QoQ.
Key positives
- Consolidated EBITDA increased 88.6% YoY to ₹143.25 crore versus revenue growth of 7.3%, with EBITDA margin expanding 627bps to 13.50%; employee cost grew 2.5% and depreciation grew 2.0%, both below revenue growth.
- Sugar segment result increased 302.9% YoY to ₹77.85 crore despite sugar revenue declining 3.0% to ₹769.00 crore, indicating a sharp improvement in segment profitability.
- Operating cash flow rose to ₹1,439.74 crore in H1FY27 from ₹806.43 crore, supported by a ₹1,262.99 crore working-capital release from inventories.
- Short-term borrowings declined to ₹77.56 crore from ₹1,280.16 crore at March 31, 2026, while consolidated CWIP increased to ₹179.55 crore from ₹46.52 crore.
Key concerns
- Consolidated finance cost increased 52.2% YoY to ₹15.57 crore, outpacing revenue growth of 7.3%, despite falling 41.4% QoQ.
- Sugar segment revenue declined 3.0% YoY to ₹769.00 crore even as its result rose 302.9%, making the profit recovery more dependent on margin and mix than volume growth.
- Foreign subsidiaries reported a combined quarterly loss of ₹2.21 crore, reducing consolidated PAT to ₹68.40 crore from standalone PAT of ₹70.61 crore.
- The quarter's operating cash generation was strongly assisted by a ₹1,262.99 crore inventory release, so the underlying recurring cash conversion requires monitoring.
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