Birla Corporation (500335) Q4 25/26 earnings summary

Executive summary

• Achieved 4% volume growth for the year, with Q4 and full-year revenues at approximately INR 1,000 crore and INR 800 crore, respectively.

• Audited standalone and consolidated financial results for the quarter and year ended 31st March 2026 were approved, with a recommended dividend of ₹12.50 per share (125%) for FY 2025-26, subject to shareholder approval.

• Overcame operational challenges at certain plants and leveraged market tailwinds to deliver satisfactory results.

• Maintained strategic focus on blended and premium cement, increasing blended cement share from 82% to 88% and trade segment share from 70% to 77% year-over-year.

• Mukutban plant volume improved from 24.6 lakh tons to 27.7 lakh tons.

Financial highlights

• Consolidated revenue from operations for FY 2025-26 was ₹9,655.61 crore, up from ₹9,214.49 crore year-over-year.

• Consolidated net profit after tax for FY 2025-26 was ₹557.58 crore, compared to ₹295.22 crore in the previous year.

• Net debt at year-end stood at INR 2,100 crores, with peak net debt expected to reach INR 4,000 crores during the CapEx cycle.

• Dividend payout recommended at ₹12.50 per share, totaling ₹96.26 crore.

• Operating cash flow declined due to higher working capital from increased fuel inventory and delayed incentive realization (receivables ~INR 500 crore).

Outlook and guidance

• No major new capacity expansions planned beyond ongoing projects; Maihar Line 2 and associated grinding units to be completed by FY 2029, raising capacity to 27.5 million tons.

• FY 2027 CapEx guidance is INR 500 crore; total CapEx for expansion from 21.5 to 27.5 million tons is INR 4,760 crore (INR 4,300 crore net of GST).

• Management plans to opt for the new corporate tax regime from the next financial year, with deferred tax liabilities already adjusted accordingly.

• Debt/EBITDA ratio expected to remain below 2.5.

• EBITDA expected to remain in a similar range to the previous year.