Dalmia Bharat targets 130 MTPA by FY31, plans ₹4,000 cr raise

Dalmia Bharat is laying out a ten-year capacity roadmap that would more than double its current output. The company plans to raise up to ₹4,000 crore through instruments including QIPs, GDRs, and convertible debentures, with the proceeds going toward capital expenditure, debt repayment, and working capital, according to the agenda for its upcoming annual general meeting.

The board approved the fundraising on May 23, 2026. The company said it needs the capital to support both organic expansion and inorganic growth, as it evaluates acquisitions alongside greenfield and brownfield projects.

Dalmia Bharat currently operates around 49.5 million tonnes per annum of cement capacity, concentrated in eastern, northeastern, and southern India. The medium-term target is 75 MTPA. By FY31, the company wants to reach 110-130 MTPA, a range that would put it in the same league as Adani Group's Ambuja Cements, which today runs 109 MTPA. Only two Indian cement makers currently operate above 100 MTPA: UltraTech Cement at 205.5 MTPA and Ambuja.

The expansion plan is built on a demand thesis. Dalmia Bharat expects cement consumption to grow at a 6-7% compound annual rate over the next several years, driven by government infrastructure spending, private-sector investment, and housing demand tied to urbanisation. "This will create long-term volume-growth opportunity across regions," the company said in its annual report. "Our calibrated capacity expansion to 110-130 MTPA capacity by 2031 is strategically aligned with this demand growth outlook."

The Jaiprakash deal and the Phase II spend

The company recently signed an agreement to acquire cement assets from Jaiprakash Associates, including plants in Madhya Pradesh and Uttar Pradesh, for an enterprise value of ₹2,850 crore. Managing Director and CEO Puneet Yadu Dalmia and Managing Director Gautam Dalmia told shareholders the acquisition "will provide faster access to central markets compared to a greenfield project" and offers expansion room through debottlenecking and brownfield additions.

Separately, the company announced Phase II strategic investments of over ₹6,800 crore to add 12 MTPA of capacity at Belgaum, Pune, and Kadapa. Dalmia Bharat is also developing a bulk terminal near Chennai to strengthen its position in North Tamil Nadu.

The company expects its capacity to reach 66.7 MTPA by the second or third quarter of FY28. "Our expanding presence, combined with increasing production capacity to 66.7 MTPA by Q2-Q3 FY 2027-28 and continued emphasis on sustainable solutions, reflects our commitment to supporting Bharat's infrastructure," the Dalmias said.

Financial performance and product mix

Dalmia Bharat reported its highest-ever annual EBITDA of ₹3,083 crore in FY26. Revenue rose 6% to ₹14,804 crore, and profit after tax jumped 65% to ₹1,157 crore.

The company is pushing a premiumisation strategy centred on specialised Roof, Column and Foundation solutions designed to improve structural performance. It is also seeing a shift toward blended cement products, supported by higher utilisation of Portland Slag Cement and advanced formulations.

The competitive context

The Indian cement industry is consolidating through inorganic deals. UltraTech Cement holds the top spot at 205.5 MTPA. Ambuja Cements, controlled by the Adani Group, is second at 109 MTPA. Dalmia Bharat's target range of 110-130 MTPA by FY31 would place it in direct competition with Ambuja for the No. 2 slot, assuming no further capacity additions from the Adani-owned player.

The company's current Alpha Score on AlphaScala is 47 out of 100, labelled Mixed, in the Utilities sector. The score reflects the balance between the company's strong operating performance and the execution risk embedded in its ambitious expansion timeline.

Dalmia Bharat said it continues to evaluate avenues for organic and inorganic growth. The ₹4,000 crore fundraising proposal will go to shareholders for approval at the AGM.