Birla Corporation Q2 profit plunges 58.9% to ₹37 crore on higher input costs

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Higher clinker, power and fuel expenses weighed on profitability, even as cement sales volumes increased and premium product sales recorded growth

By PTI

Updated - October 31, 2026 at 07:04 PM. | Kolkata

Birla Corporation reported a 58.9 per cent fall in Q2 net profit to ₹37 crore amid higher input costs and weak cement prices.

Birla Corporation Ltd on Saturday reported a 58.9 per cent year-on-year moderation in consolidated net profit to Rs 37 crore for the September quarter, as higher input costs and weak cement prices hit margins.

The company had posted a net profit of Rs 90 crore in the same period a year ago.

Revenue rises, but EBITDA declines

Consolidated revenue rose 9 per cent to Rs 2,441 crore from Rs 2,233 crore a year earlier. Consolidated EBITDA declined to Rs 254 crore from Rs 332 crore.

Cement sales volume grew 7 per cent to 4.54 million tonnes, while realisation rose 2 per cent to Rs 4,925 per tonne, though it was marginally lower sequentially as prices weakened in core markets through July and August. Capacity utilisation was steady at 85 per cent.

Higher input costs squeeze cement margins

Clinker cost rose 13 per cent, and power and fuel cost went up 15 per cent as pet coke prices climbed 64 per cent. The cement division’s EBITDA per tonne fell to Rs 482 from Rs 712, and its EBITDA margin contracted 490 basis points to 9.8 per cent.

Blended cement made up 86 per cent of sales, while premium products grew 17 per cent to 2.38 million tonnes. The share of the trade channel rose to 82 per cent from 79 per cent.

Green power and coal mine to help contain costs

To contain costs, the company raised green power consumption to 32 per cent from 30 per cent and began extracting coal from its Bikram mine in Madhya Pradesh. The mine is expected to deliver 1.8 lakh tonnes in the second half of the fiscal.

Jute division reports higher revenue and cash profit

In the jute division, revenue rose 17 per cent to Rs 155 crore, and cash profit stood at Rs 13.01 crore against Rs 4.64 crore a year ago, despite a 26 per cent drop in production due to raw jute shortage.

For the first half, net profit fell 27.1 per cent to Rs 153 crore, while revenue rose 8.3 per cent to Rs 5,111 crore.

The company said cement realisation has begun improving from October, but cost pressure is likely to persist and weigh on profitability.

Published on October 31, 2026

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