Birla Corporation Q2 net profit at ₹90.48 crore on higher cement sales

Birla Corporation posted a consolidated net profit of Rs 90.48 crore in Q2FY26, aided by improved performance in its cement and jute divisions, even as rainfall and price pressure weighed on margins

Don't want to miss the best from Business Standard?

Birla Corporation, the flagship company of M P Birla Group, on Friday reported a consolidated net profit of Rs 90.48 crore attributable to owners in the July-September quarter (Q2 FY26) compared to a net loss of Rs 25.19 crore the previous year.

 

The company attributed the performance to improved profitability in cement and jute divisions. However, the net profit was lower than the Q1 FY26 net profit of Rs 119.57 crore.

 

Cement sales in Q2 FY26 were affected by excessive rainfall in its key markets, subdued prices, and market disruptions following GST cuts in September. Birla Corporation said in a statement it is focused on consolidating market share in key regions and registered a 7 per cent growth in cement sales by volume, driven by its portfolio of premium products.

 

Consolidated revenue in Q2 FY26 stood at Rs 2,233.44 crore, up 13.4 per cent from the previous year. In Q1 FY26, consolidated revenue was Rs 2,486.16 crore.

 

“The company was able to overcome headwinds from multiple directions to deliver a resilient performance, which boosts confidence in the robustness of our strategies,” said Sandip Ghose, managing director & chief executive officer of Birla Corporation.

 

Cement demand in northern and central India was stable in Q2 FY26, but prices in the central region dropped Rs 3-5 per bag due to intense competition. Demand in the east was weak except in Bihar, where pre-election demand gave a fillip to cement sales, the company said.

 

Demand increased in Maharashtra but it didn’t help raise prices. In Telangana, prices fell Rs 7-10 per bag.

 

Birla Corporation’s management expects cement demand to revive in the three months till December, led by government capital expenditure on infrastructure, and translate into year-on-year volume growth of 4-5 per cent in the December quarter.

 

The company’s jute division saw an improvement in operational efficiency and a sharp increase in sales volume that helped it report a cash profit of Rs 5 crore in Q2 FY26 against a loss of Rs 2 crore in the same period last year.