Birla Corporation Q1 Results: Net Profit Jumps 264%, EBITDA Grows 38% on Strong Cement and Jute Performance

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Chandigarh: Birla Corporation Limited has delivered a robust performance for the first quarter of FY 2025-26, reporting a 264% jump in consolidated net profit to ₹120 crore and a 38% increase in EBITDA to ₹379 crore. The company’s consolidated revenue for the June quarter stood at ₹2,486 crore, up 13% year-on-year, driven by higher cement sales, cost efficiencies, and a notable turnaround in its jute business.

📈 Key Financial Highlights (Q1 FY26 vs Q1 FY25):

🏗 Cement Division: Operational Performance

During the June quarter, Birla Corporation sold 4.79 million tons (mt) of cement, registering a 9.1% year-on-year growth. Despite the early arrival of the monsoon and pricing pressure in central India, the company maintained healthy volumes and improved overall realizations.

The Cement Division’s EBITDA rose to ₹364 crore, a 34% increase, with EBITDA per ton improving by 19% to ₹715. The division’s operating margin stood at 14.7%, compared to 12.5% last year.

Clinker production was down 17% to 2.44 mt, largely due to extended maintenance shutdowns. The shortfall was partially offset by third-party clinker purchases to maintain market share. To improve profitability, the company emphasized selling blended and premium cement, reducing its reliance on OPC (Ordinary Portland Cement) and the non-trade segment.

💼 Premium and Blended Cement Drive Growth

Premium cement brands like Perfect Plus and Unique Plus played a pivotal role in boosting margins:

• Perfect Plus volumes rose 19%, with strong performance in Rajasthan, Madhya Pradesh, Uttar Pradesh, Maharashtra, and West Bengal.

• Unique Plus sales surged 37%, albeit on a smaller base.

Premium cement accounted for 58% of total trade channel sales, offering significantly higher margins than standard products. Meanwhile, blended cement formed 89% of overall sales, up from 84% a year ago. States like West Bengal and Rajasthan saw sharp increases of 37% and 15%, respectively.

🧱 Regional Market Insights

Birla Corporation’s performance varied by region:

• Eastern India: Cement sales grew 18%

• Western India: Sales up 15%

• Central and Northern India: Growth of 7-8%, though demand remained muted due to seasonal and pricing pressures

Despite headwinds in the central market, the company’s focus on value-driven sales, premium products, and strategic channel mix helped maintain healthy profitability.

⚡ Cost Optimization and Green Energy

The company reported an 8.4% decline in power and fuel costs, from ₹1,019 per ton last year to ₹933 this quarter, supported by lower energy prices and greater adoption of renewable energy. Green power usage accounted for 26.9% of total consumption in the June quarter.

🧵 Jute Division: Impressive Turnaround

Birla Corporation’s Jute Division achieved a significant turnaround, posting a cash profit of ₹6.4 crore, compared to a loss of ₹3.9 crore in Q1 FY25. This improvement was backed by:

• 63% growth in domestic sales

• 133% jump in export sales (by value)

• Cost control measures and modernization of manufacturing processes

To enhance efficiency, the division has started installing new-generation looms and is setting up a rooftop solar power system, expected to reduce energy costs upon commissioning later this fiscal year.

The company’s leadership is now focused on making Birla Jute the most cost-efficient and safe jute processing facility in India.

🏭 Strategic Outlook

Managing Director and CEO Shri Sandip Ghose stated:

“With the ramp-up of our Mukutban plant and optimal use of the Chanderia expansion, we are now positioned to pursue the next phase of growth through both brownfield investments and greenfield capacity additions.”

With India’s cement demand expected to grow 4–5% pan-India, Birla Corporation is confident of strengthening its footprint across core markets by leveraging premium offerings, sustainability, and operational excellence.

🔍 Segment Highlights (Q1 FY26):

• Cement Sales Volume: 4.8 mt (up 9.1%)

• Blended Cement Share: 89% (vs. 84% in Q1 FY25)

• Trade Channel Share: 78% (vs. 72%)

• Premium Cement Share: 58% (vs. 59%)

📌 Conclusion

Birla Corporation has started FY26 on a strong note, with healthy top- and bottom-line growth, driven by operational efficiencies and strategic product focus. Its dual-engine momentum — a thriving cement business and a resurgent jute division — positions the company well to capitalize on upcoming infrastructure demand and industrial recovery.

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