Birla Corp soars after strong Q4 result

Birla Corporation hit an upper limit of 20% to Rs 1270.25 after the company's consolidated net profit for the March quarter, grew 33% year-on-year (yoy) to Rs 257 crore.

"This came after three challenging quarters that had affected the entire industry. An uptick in demand and prices during the quarter led to better realization and a higher capacity utilization of 105% in the March quarter," the company said in a statement.

Though realization for the quarter at Rs 5,103 per ton was still marginally lower than the same period last year (Rs 5,178 per ton) owing to the changed geographical mix, consolidated revenue for the quarter at Rs 2,863 crore was 7% higher yoy. EBITDA per ton rose to Rs 1,014--one of the highest in recent years. It represents a growth of 5% yoy and 78% sequentially. The Cement Divisions operating profit margin was 20% for the March quarter, compared to 18.6% in the same period last year, and 14% for the full year (15.5% in FY23-24).

For the full year, the company's net profit declined 29.9% to Rs 295 crore while revenue declined 4.4% to Rs 9312 crore in the year ended March 2025 over the previous year ended March 2024. EBITDA fell 13.7% yoy to Rs 1315 crore in FY25.

Birla Corporation's cement sales by volume for the March quarter grew 8% yoy to 5.2 mt. In FY24-25, the company sold 18.1 mt of cement, compared to 17.6 mt in the previous year, up 2.5%.

Birla Corporation has reduced its net debt to Rs 2,244 crores at the end of March against Rs 3,003 crore a year earlier. The companys cost of borrowing at the end of March was 7.56%, down 35 basis points from a year earlier.

Meanwhile, the company's board approved an investment of Rs 4,335 crore to scale up the production capacity from 20 million tons (mt) to 27.6 mt by 2028-29, by expanding an integrated unit and setting up three new grinding units. The expanded capacity includes the ongoing expansion at Kundanganj, which is progressing on schedule. The company's subsidiary, RCCPL, will invest Rs 2,300 crore into its Maihar (Madhya Pradesh) unit to expand its clinker production capacity. The clinker produced at Maihar will be fed to the three new grinding units, to be set up at Prayagraj, Gaya and Aligarh, for which Birla Corporation, and its subsidiary, RCCPL, have budgeted for an investment of Rs 2,035 crore.

Separately, the companyh's board on Friday approved the re-appointment of Sandip Ghose as Managing Director and CEO for three years effective 1 January 2026. Ghose was responsible for developing the brand architecture of Birla Corporation and launched the Company in its product premiumization journey.

Birla Corporation has interest in cement and jute goods. The company and its subsidiary, RCCPL, have 10 cement plants, in eight locations, across the country, with an annual installed capacity of 20 million tons. The company produces an array of cement products, under the MP Birla Cement brand, suited to different climatic conditions as well as consumer segments. It also sells construction chemicals and wall putty.

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