Revenue for the September quarter slipped to ₹3,563 crore, 2.5% below the ₹3,646 crore consensus. Sales volume fell to 7.1 million tonnes, 2.7% shy of the 7.3 million tonnes forecast. Net sales realization ticked up 1% YoY but dipped 1% sequentially.
EBITDA dropped to ₹493 crore, 11% under the ₹552 crore estimate, and the margin contracted to 13.84% versus the expected 15.14%. EBITDA per tonne fell to ₹698, compared with ₹752 projected. The decline reflects higher fuel and power costs.
The company recorded a ₹282 crore impairment on certain assets, including three captive power plants, and a ₹57 crore charge for an employee separation scheme, contributing to the ₹208 crore net loss, a reversal from the ₹75 crore profit forecast.
HSBC downgraded Dalmia Bharat to Hold and trimmed its price target to ₹1,820 from ₹2,200, citing muted volume growth and sharp cost increases. Morgan Stanley kept an Underweight stance with a ₹1,640 target, warning that central asset integration will likely remain a drag into December. Citi cut its target to ₹1,900 after noting a 29% YoY EBITDA decline.
Shares opened 6% lower, trading around ₹1,700 on the BSE, reflecting the downgrade shock. Analysts expect the company to break even by FY27 end, but rising fuel costs and potential JPA losses could offset gains. Investors will keep an eye on the December 2026 filing for cost‑control signals.