Dalmia Bharat’s fortunes tied to pricing in East, while Q3 sees demand improvement

cement demand.Dalmia Bharat’s total installed cement capacity stood at 49.45 million tonnes per annum (mtpa) at the end of Q2FY26, and it is targeting 75 mtpa by FY28. However, PL Capital, in a report dated 19 December, noted that the company remains largely a price play in the near term, given that about 60% of its capacity is in the eastern region, including the North-East, and 34% in the southern markets.“We believe Dalmia Bharat, in the near-term, remains a price play on the eastern and southern regions as intense competition from leaders continues to limit market share expansion,” the brokerage said.

It also cautioned that the company faces the risk of missing its medium-term capacity targets due to issues related to the Jaiprakash Associates deal.Pricing trends remain subdued and are contingent on demand improvement in the key eastern and southern markets. Management said a sharp fall of ₹20–25 per bag in Q3FY26-to-date in the non-trade segment across these regions is likely to lower blended realisations by 3–4% sequentially in Q3FY26.Dalmia continues to prioritise better field-level execution over chasing volumes, particularly in the eastern region.

The non-trade segment includes bulk sales made directly to large buyers such as the government or major infrastructure and real estate companies.Dalmia Bharat’s stock has declined about 10% over the past three months. According to Emkay Global Financial Services, the pricing weakness in the non-trade segment during Q3FY26 so far is largely reflected in the current stock price.Based on recent channel checks, Emkay expects industry pricing conditions to improve from January, particularly in the east and south.