Dalmia Bharat Shares Hit 52-Week Low After Q2 Results: Should Investors Buy, Sell or Hold? Cost Pressure, Exceptional Charge and Key Levels
- October 27, 2026
- Posted by: Harsh Piplani
- Category: News
Dalmia Bharat shares fell as much as 7.3% to Rs 1,507.70 on Tuesday, 27 Oct 2026, a fresh 52-week low, after the cement maker reported a September-quarter loss of Rs 205 crore against a profit of Rs 239 crore a year earlier. At 11:59 AM the stock was at Rs 1,533.60, down 5.67% from Rs 1,625.80, on volume of about 3.74 lakh shares against 54,656 on Monday (data provider).
Quick Answer
Dalmia Bharat shares hit a 52-week low because revenue grew only 4.3% to Rs 3,563 crore while EBITDA fell 29.2% to Rs 493 crore, as power, fuel and raw material costs rose. The loss came after an exceptional charge of Rs 339 crore, mainly the impairment of three captive power plants and a discontinued brand. EBITDA per tonne was Rs 698 against Rs 1,013 a year earlier, and management says it can recover toward Rs 1,000 in Q3 if prices hold. This is educational and not a recommendation.
Dalmia Bharat shares are now about 32% below their 52-week high of Rs 2,260 (my calculation), and the Dalmia Bharat share price has fallen about 7% over the last two weeks. The key question for Dalmia Bharat shares is how much of the loss is a one-time accounting charge and how much is a real squeeze on cement margins. This article reads the quarter, the cost data, the balance sheet, valuation and the technical levels.
I could not retrieve the names or revised targets of the brokerages that cut estimates, although the headline says they lowered price targets, so I do not quote any. Where sources differ, I flag it. It is educational and not advice.
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Dalmia Bharat Q2 Results: Loss, Exceptional Charge and Margin
| Dalmia Bharat shares: Q2 FY27 | Sep 2026 | Sep 2025 | Change |
|---|---|---|---|
| Revenue from operations | Rs 3,563 crore | Rs 3,417 crore | Up 4.3% |
| EBITDA | Rs 493 crore | Rs 696 crore | Down 29.2% |
| EBITDA margin | 13.84% | 20.37% | Down about 6.5 percentage points |
| EBITDA per tonne | Rs 698 | Rs 1,013 | Down 31.1% (my calculation) |
| Net result | Loss of Rs 205 crore | Profit of Rs 239 crore | Swing to loss |
| Loss per share | Rs 11.0 | Earnings of Rs 12.6 | Negative |
The Dalmia Bharat Q2 results were hit by exceptional items of Rs 339 crore, made up of an impairment of Rs 282 crore, mainly on three captive power plants as the company shifts to lower-cost renewable power and on a discontinued brand, and Rs 57 crore for an employee separation scheme. The one-time charge is larger than the Rs 205 crore loss, which suggests the quarter would have been profitable before tax effects, but I did not retrieve an adjusted profit figure. Dalmia Bharat shares fell because the operating profit also dropped by almost a third.
For the Dalmia Bharat Q2 results, the data provider shows September 2025 revenue of Rs 3,483 crore, while the company-basis figure is Rs 3,417 crore, so growth is 4.3% on the company basis and about 2.3% on the data provider base (my calculation). For Dalmia Bharat shares, H1 FY27 shows a loss of Rs 13 crore against a profit of Rs 634 crore a year earlier.
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Cost Pressure Behind the Dalmia Bharat Share Price Fall
| Dalmia Bharat shares: cost item (per tonne) | Q2 FY27 | Change |
|---|---|---|
| Raw materials | Rs 876 | Up 10% year on year, up 6% from June |
| Power and fuel | Rs 1,224 | Up 20% year on year, up 17% from June |
| Blended fuel cost | Rs 1.66 per million kcal | Rs 1.47 in June and Rs 1.38 a year ago |
| Net sales realisation | Rs 5,042 | Up 1% year on year, down 1% from June |
| Other expenses | Rs 677 crore in total | Up 24% year on year |
The EBITDA bridge explains the margin for Dalmia Bharat shares: volume added Rs 20 crore and realisation added Rs 49 crore against a year ago, while cost increases took away Rs 272 crore. Management pointed to inflation in key raw materials, and the report says imported petcoke prices rose 20% and diesel 37% through September. A weak East and Northeast also left fixed costs under-absorbed by about Rs 100 to Rs 120 per tonne, according to the CFO on the earnings call.
The Dalmia Bharat share price also reflects volume of 7.1 million tonnes, up 3% year on year but down 7% from June, and incentives fell to Rs 25 crore from Rs 64 crore. Brokerages cited demand concerns and volume risks for Dalmia Bharat shares, which fits a quarter where volume fell sequentially.
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Balance Sheet and Outlook
| Dalmia Bharat shares: item | Detail |
|---|---|
| Gross debt | Rs 9,582 crore, against Rs 6,621 crore a year ago |
| Net debt | Rs 5,722 crore, against Rs 1,602 crore a year ago |
| Net debt to EBITDA | 2.0 times, against 0.6 times; the rise is mainly from the Central India acquisition |
| FY27 capex guidance | Rs 3,200 crore to Rs 3,400 crore, unchanged (inferred range) |
| Q3 outlook | Management expects a sequential improvement and EBITDA per tonne above Rs 1,000 if current prices hold; the CFO’s remark was not confirmed as guidance |
| Q3 fuel cost | Expected to rise a further Rs 75 to Rs 80 per tonne |
| Central India | Utilisation of 35% to 40% by end of FY27, near break-even by Q4 FY27 and Dalmia-standard EBITDA by end of FY28 |
| Capacity | About 67 million tonnes targeted by FY28; utilisation has stayed near 60% to 65% for five years |
Net debt behind Dalmia Bharat shares has risen by about Rs 4,120 crore in a year (my calculation) because of the Central India acquisition, which is why the borrowing level crossed 2 times EBITDA. The CFO said the company does not intend to go above 2.5 times. For Dalmia Bharat shares, a price rise of about Rs 15 a bag from the Q2 average could add Rs 20 to Rs 30 per tonne, so recovery in Q3 depends on prices holding while fuel costs rise.
Valuation of Dalmia Bharat Shares
| Dalmia Bharat shares: measure | Reading (data provider) | Comment |
|---|---|---|
| Price to earnings (trailing) | 32.06 | Industry level is 29.58; this was before the Q2 loss |
| Price to earnings after the loss (my calculation) | About 58 | Uses trailing EPS of about Rs 26.2 after the Rs 11.0 loss |
| Price to book | 1.70 | Book value Rs 958.52 per share |
| Return on equity | 6.34% | Before the Q2 loss |
| Market cap | Rs 30,551 crore | Data provider |
| Dividend yield | 0.56% | Small |
The data provider’s ratios were calculated before the Q2 loss, so the trailing multiple of Dalmia Bharat shares will rise as the loss feeds in. At the current price Dalmia Bharat shares trade near 1.6 times book value (my calculation), but earnings are under pressure. The valuation of Dalmia Bharat shares is therefore a bet that EBITDA per tonne recovers toward Rs 1,000 and that Central India reaches break-even.
Technical Levels for Dalmia Bharat Shares
| Dalmia Bharat shares: indicator | Reading | Meaning |
|---|---|---|
| Price at 11:59 AM | Rs 1,533.60 | Down 5.67% from Rs 1,625.80 |
| Day low | Rs 1,507.70 | A new 52-week low; the earlier low in the data was Rs 1,574.30 |
| 14-day RSI | 34.88 | Weak, close to oversold |
| 20-day EMA | Rs 1,623.94 | Price is about 5.6% below it (my calculation) |
| SuperTrend (10, 3) | Buy; lower band Rs 1,500.99, upper band Rs 1,733.97 | Price is only about 2.2% above the lower band (my calculation) |
| 52-week high | Rs 2,260 | The current price is about 32% below it (my calculation) |
For Dalmia Bharat shares, a fall below the SuperTrend lower band at Rs 1,500.99 would turn the signal negative, and the day’s low of Rs 1,507.70 sits just above it. On the upside, Dalmia Bharat shares need to recover the 20-day average of Rs 1,623.94, which is also near Monday’s close, to repair the short-term trend. These are trend readings and not targets or recommendations.
Should Investors Buy, Sell or Hold? Risks to Watch
- Fuel costs. Petcoke above USD 180 a tonne and crude above USD 100 a barrel can keep power and fuel costs rising in Q3.
- Pricing. The recovery toward Rs 1,000 per tonne needs the price rise of about Rs 15 a bag to stick.
- Central India. Break-even by Q4 FY27 depends on utilisation reaching 35% to 40%.
- Borrowing. Net debt at 2.0 times EBITDA leaves less room if margins stay weak.
- Demand. Volume fell 7% from June, and a weak East and Northeast raised fixed costs per tonne.
Conclusion: Dalmia Bharat Shares Hinge on Margin Recovery
Dalmia Bharat shares hit a 52-week low because a one-time charge and a real fall in EBITDA arrived in the same quarter. Management expects Q3 to improve for Dalmia Bharat shares and has kept its capex plan, while costs, borrowing and Central India still need to be watched. Dalmia Bharat shares may stay volatile near Rs 1,500 until EBITDA per tonne shows a clear recovery. Verify the filings and decide according to your own risk profile.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
Why did Dalmia Bharat shares hit a 52-week low?
Ans. The company reported a Q2 FY27 loss of Rs 205 crore after an exceptional charge of Rs 339 crore, and EBITDA fell 29.2% to Rs 493 crore as costs rose. The stock fell as much as about 7.3% to Rs 1,507.70 on 27 Oct 2026. It traded at Rs 1,533.60 at 11:59 AM, so check the live quote.
What was the Rs 339 crore exceptional charge?
Ans. It included an impairment loss of Rs 282 crore, mainly on three captive power plants as the company shifts to lower-cost renewable power, and a discontinued brand. A further Rs 57 crore was for an employee separation scheme at select units. These items are one-time in nature, but the operating profit also fell.
Should I buy, sell or hold Dalmia Bharat shares?
Ans. That depends on your time horizon and risk profile, and this article is not a recommendation. The positives are expected recovery in Q3 and an unchanged capex plan, while the risks are fuel costs, rising net debt and weak volume. Check the company’s filings and your own risk limits.
What happened to EBITDA per tonne?
Ans. EBITDA per tonne was Rs 698 on a reported basis against Rs 1,013 a year ago, and Rs 746 excluding Central India. Costs rose about Rs 260 per tonne, and Central India diluted the figure by about Rs 50. Management targets above Rs 1,000 in Q3 if prices hold.
Is Dalmia Bharat’s debt a concern?
Ans. Net debt rose to Rs 5,722 crore from Rs 1,602 crore a year ago, and net debt to EBITDA is 2.0 times against 0.6 times, mainly due to the Central India acquisition. The CFO said the company does not intend to exceed 2.5 times. Falling EBITDA makes this ratio more important.
What are the key technical levels for Dalmia Bharat shares?
Ans. Daily readings show an RSI of 34.88, a 20-day EMA of Rs 1,623.94 and a SuperTrend buy signal with a lower band of Rs 1,500.99 and an upper band of Rs 1,733.97. The day’s low is Rs 1,507.70 and the 52-week high is Rs 2,260. These are trend readings and not targets.
What is the outlook for the next quarter?
Ans. Management expects a sequential improvement in Q3 FY27, helped by a price rise of about Rs 15 a bag, but fuel costs may rise a further Rs 75 to Rs 80 per tonne. Central India is expected to reach near break-even by Q4 FY27. These are management expectations and not guaranteed outcomes.
Is this article investment advice?
Ans. No. It is educational and not a recommendation to buy or sell. Please check the figures against company filings and your own risk profile before you act on anything you read here.
