Dalmia Bharat earnings estimates cut after Q3 results; shares trade lower

Dalmia Bharat's net profit for the quarter stood at ₹122 crore, compared with ₹61 crore in the corresponding period last year

Shares of Dalmia Bharat Ltd. traded with losses on Thursday after analysts cut earnings estimates for the company after it reported its December quarter earnings for the current financial year (Q3-FY26)

 

The company's stock fell as much as 1.8 per cent during the day to ₹2,190.3 per share. The stock pared losses to trade 0.7 per cent lower at ₹2,216.8 apiece, compared to a 0.49 per cent advance in Nifty 50 as of 10:33 AM. 

 

Shares of the company snapped a two-day winning streak and currently trade at 1 times the average 30-day trading volume, according to Bloomberg. The counter has risen 4 per cent this year, compared to a 3 per cent decline in the benchmark Nifty 50. Dalmia Bharat has a total market capitalisation of ₹41,527.1 crore. 

 

Dalmia Bharat Q3 results 

The company's net profit for the quarter stood at ₹122 crore, compared with ₹61 crore in the corresponding period last year. Revenue rose 10.2 per cent year-on-year (Y-o-Y) to ₹3,506 crore from ₹3,181 crore.

 

Operating performance improved, with Ebitda increasing 17.8 per cent to ₹602 crore from ₹511 crore a year earlier. The Ebitda margin expanded to 17.2 per cent from 16.1 per cent in the year-ago quarter.

Analysts on Dalmia Bharat earnings

Dalmia Bharat delivered an in-line performance in the third quarter, with recent pricing buoyancy expected to support further upside in the stock, according to Emkay Global. The brokerage noted that the stock has gained more than 10 per cent over the past month and said the rally could extend further if pricing strength continues through the remainder of Q4FY26. 

 

However, factoring in the relatively weak third-quarter earnings, Emkay Global said it has cut its Ebitda estimates for FY26, FY27 and FY28 by 4 per cent to 9 per cent. Emkay Global has maintained its 'Add' rating on the stock, while trimming its target price to ₹2,350 from ₹2,450 earlier.

 

PL Capital downgraded the stock to 'Hold' following the recent run-up in its price. The brokerage said freight costs declined due to higher direct dispatches and lower lead distances. However, raw material costs increased following the Tamil Nadu Mineral Bearing Land Act, while other expenses rose on account of higher shutdown and marketing costs. 

 

Dalmia Bharat's profitability may remain volatile due to higher exposure to under-utilised South and East markets, while net debt is expected to rise given the company's aggressive growth plans, according to Antique Stock Broking. Factoring in weak third-quarter realisations, the brokerage has cut its Ebitda estimates for FY26 to FY28 by 4-6 per cent, while retaining a target price of ₹2,370.

 

==========

 

(Disclaimer: The views and investment tips expressed by the analysts in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.)