Birla Corporation Reports 71% EBITDA Surge to ₹332 Cr, Net Profit Swings to ₹90 Cr in Q2 FY26

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Panipat — Birla Corporation Limited, the flagship cement manufacturer of the M.P. Birla Group, has delivered a remarkably resilient performance in the second quarter of the 2025-26 financial year (Q2/FY26). The company successfully overcame significant industry headwinds, including subdued cement demand, weak pricing, and excessive monsoon rainfall, to report a substantial turnaround in its profitability.

The company’s consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) for the September quarter jumped by 71.1% year-on-year (yoy) to ₹332 crore, against ₹194 crore in Q2/FY25. Furthermore, the company swung to a consolidated Net Profit of ₹90 crore, a dramatic recovery from the consolidated net loss of ₹25 crore recorded in the same period last year.

Financial Highlights (Consolidated: In ₹ crore)

Metric	Q2/FY 25-26	Q2/FY 24-25	Change (YoY)	H1 FY26	H1 FY25	Change (YoY)
Revenue	2,233	1,970	13.4%	4,720	4,177	13.0%
EBITDA	332	194	71.1%	710	470	51.1%
Net Profit	90	-25	Turnaround	210	7	2900%

The robust financial rebound was attributed to improved profitability in both the core Cement and the Jute divisions, underpinned by effective operational efficiency measures and a strategic focus on the premium product mix.

Cement Division: Efficiency Drives Profitability

Despite challenging market conditions—including intense competition, price drops (₹3-5/bag in Central India; ₹7-10/bag in Telangana), and disruptions from GST changes—the Cement Division demonstrated remarkable operational strength.

Volume Growth: Cement sales volume grew 7.0% yoy to 4.25 million tons (mt), driven by consolidation of market share in key markets like Madhya Pradesh and Rajasthan (7-11% volume growth).
Premium Focus: The company’s focus on the high-margin trade channel paid off, with sales through this channel rising to 79% of total sales, up from 71% yoy. Premium products, constituting 60% of trade channel sales, were the growth engine:
- Flagship brand Perfect Plus registered a 20% yoy volume growth.
- Unique Plus grew by 28% yoy (on a lower base).
Operational Excellence: The success was primarily due to sharp gains in efficiency. Although realization per ton only improved by 3.2% to ₹4,845, the EBITDA per ton surged 54.4% yoy to ₹712 (up from ₹461). The Cement Division’s operating profit margin expanded significantly to 14.7% from 9.8% a year ago. Notably, operating cost (excluding interest) declined by 2% despite unplanned operational disruptions and the need to purchase clinker.

Jute Division: A Significant Turnaround

The Jute Division, too, played a crucial role in the consolidated profit swing, staging a strong turnaround:

Cash Profit: The division reported a cash profit of ₹5 crore in Q2/FY26, reversing a loss of ₹2 crore in the same period last year.
Revenue and Volume: Revenue from Birla Jute Mills grew 71% yoy to ₹132 crore, supported by a massive 55% yoy increase in sales volume to 9,987 metric tons.
Efficiency Gains: The turnaround was driven by operational improvements, including a 17% yoy increase in average loom production and a 20% scale-back in conversion cost, which successfully mitigated a sharp 26% rise in the price of raw jute.

Commitment to Sustainability: Scaling Renewable Power

Birla Corporation is accelerating its commitment to sustainability by rapidly scaling up its use of renewable power.

Current Share: Renewable power accounted for nearly 30% of the Cement Division’s total power consumption in Q2, up from 25% yoy.
New Capacity: The company has already commenced sourcing 6 MW of wind-solar hybrid power at its Chanderia plant and 6.98 MW of renewable power at the Durgapur unit in the initial part of H2/FY26.
Future Plans: The share of renewable power is expected to rise to 32% in the second half of the year, with new approvals for an additional 9 MW of Solar BESS (Battery Energy Storage System) at Chanderia and a 5 MW solar plant at Mukutban. The Jute Division is also setting up a 2.1 MW rooftop solar plant for captive consumption, expected to be commissioned by December 2025.

Management Outlook

Shri Sandip Ghose, Managing Director & CEO, stated, “The Company was able to overcome headwinds from multiple directions to deliver a resilient performance, which boosts confidence in the robustness of our strategies.”

The management anticipates a revival in cement demand in the December quarter (Q3/FY26), driven by Government capex on infrastructure and increased rural housing spend following a healthy monsoon. The company projects a 4-5% yoy volume growth in Q3, with northern and western regions expected to lead the recovery. Realizations are expected to stabilize and gradually firm up as demand returns.

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