Birla Corporation Q3 Net Profit Surges 71% to ₹53 Cr, EBITDA Up 18%
Birla Corporation's Q3 FY26 consolidated net profit rose 71% to ₹53 crore, with EBITDA up 18% to ₹312 crore. Revenue was ₹2,178 crore, down 4.1%, as cement sales volume fell 5.8% to 4.23 million tons. The company focused on blended and premium cement sales, increasing their share. The Jute Division reported a cash loss of ₹2.14 crore due to raw jute price hikes.
The strong profit growth and improved operational metrics are positive for the company. However, the decline in revenue and sales volume, coupled with challenges in the Jute Division, temper the overall impact.
The company reported a significant increase in net profit and EBITDA, along with improved EBITDA margins and operational efficiencies in the Cement Division, despite challenging market conditions. The focus on premium products and cost rationalization are positive indicators.
Birla Corporation Limited reported a consolidated net profit of ₹53 crore for the December quarter, marking a significant 71% increase compared to the same period last year. Consolidated EBITDA also saw a healthy growth of 18%, reaching ₹312 crore. The company is actively implementing measures to rationalize operating costs, optimize product and geo-mix, and enhance plant capacity utilization.
The Cement Division demonstrated improved performance with an EBITDA margin of 14.8% in the quarter, up from 11.9% year-on-year, while the overall cost of cement production decreased by 4%. Consolidated revenue for the quarter stood at ₹2,178 crore, a 4.1% decline year-on-year, attributed to a 5.8% drop in cement sales volume to 4.23 million tons, amidst an estimated 4-6% decrease in market prices.
A provision of ₹34 crore was made for the estimated impact of new labor codes introduced in November 2025, treated as an exceptional item. Despite subdued demand in October and November, the market recovered in December, driven by the B2B segment. The company maintained its focus on selling blended and premium cement in the B2C market. Sales of blended cement rose to 87% of total sales, and premium cement, particularly the Perfect Plus brand, increased its share to 63% of B2C sales. Trade channel sales also improved to 78% of total sales.
Perfect Plus and Unique Plus brands showed robust volume growth, contributing to higher realizations. The Cement Division's gross realization per ton remained stable at ₹4,754, but EBITDA per ton increased by 23% to ₹702 due to improved operational efficiencies. The company is also making substantial progress in rationalizing power and fuel costs through mix optimization and increased renewable power consumption, expanding it to 31% in the quarter. Future plans include sourcing bagasse power at Durgapur, rooftop solar at Birla Jute Mills, and a hybrid wind-solar power project at Maihar.
The Jute Division faced challenges due to a shortage and sharp price increase of raw jute, resulting in a cash loss of ₹2.14 crore for the quarter. Despite a 19% sequential drop in loom production, conversion costs were reduced by 6% year-on-year. Revenue from jute and shopping bags grew by 31% to ₹132 crore, driven by increased domestic sales and exports. The company is expanding its capacity for value-added products and food-grade items, but raw jute availability remains a near-term concern.
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