Birla Corporation’s Profit Falls 58.58% to 37.47 Crore Rupees in Second Quarter
Key Facts
Birla Corporation’s consolidated net profit fell 58.58% year on year to 37.47 crore rupees in the second quarter of fiscal 2026-27, ended September 30, 2026, from 90.48 crore rupees in the year-earlier period, according to results announced by the company. Revenue from operations rose 9.46% to 2,415.42 crore rupees from 2,206.53 crore rupees a year earlier. The company said weak cement prices and disruption to construction activity due to heavy rain in its core markets affected quarterly results. The figures reflect a widening gap between sales growth and falling profit, amid pricing pressure and higher production costs. No documented consensus estimates were available to support describing the results as missing analysts’ expectations.
Quarterly expenses rose 13.63% to 2,389.21 crore rupees, outpacing growth in revenue from operations. Clinker costs increased 13% year on year, while energy and fuel costs rose 15%; the price of petcoke jumped 64% compared with the same period a year earlier, according to data reported by Press Trust of India. The pressure showed in the cement division’s performance, as its earnings before interest, taxes, depreciation and amortization margin fell 490 basis points to 9.8%. The division’s earnings before interest, taxes, depreciation and amortization per ton declined to 482 rupees from 712 rupees a year earlier. The company said weak cement prices and heavy rain in its core markets disrupted construction activity during the quarter, weighing on prices and activity levels as production input costs rose.
Cement sales volume grew 7% to 4.54 million tons, while the average selling price rose 2% year on year to 4,925 rupees per ton, the company said. But the average price edged down from the previous quarter, limiting the effect of volume growth on revenue and margins. Blended cement accounted for 86% of total cement sales during the quarter, while sales of premium products grew 17%. This mix points to growth in product segments highlighted by the company, but coincided with lower cement earnings per ton and a narrower margin. At group level, consolidated EBITDA was 254 crore rupees, compared with 332 crore rupees a year earlier, while net profit was 37 crore rupees versus 90 crore rupees in the year-earlier period, according to the company’s statement.
The profit decline extended into the first half of fiscal 2026-27, with net profit down 27.1% to 153.2 crore rupees while revenue rose 8.28% to 5,110.6 crore rupees, according to figures reported by Press Trust of India. The results highlight the divergence between revenue growth and continued pressure on profit during the first six months. In the jute business, revenue rose to 155 crore rupees from 132 crore rupees a year earlier, and the division posted cash profit of 13.01 crore rupees despite a shortage of raw jute and a 26% decline in production by volume. The jute business thus made a positive cash contribution in the quarter, while production fell because of constraints on raw material availability. Birla Corporation operates in cement and jute products, according to the company’s description.
The company said green energy’s share of its consumption rose to 32% in the quarter from 30% in the year-earlier period. It also began extracting coal from the Bikram mine and expects to produce 180,000 tons in the second half of the current fiscal year. Management said cement selling prices had begun improving since October as construction activity regained momentum. It added that government spending on infrastructure is likely to be the main growth driver, while cost pressures persist and could affect profitability. The investor and analyst call on the quarterly and first-half results is scheduled for November 2, 2026, according to a company notice.