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Birla Corporation revenue increased by 7.8% YoY

ICICIdirect Research 27 Jul 2026 DISCLAIMER

News: Birla Corporation revenue increased by 7.8% YoY (-6.7% QoQ) to Rs 2646.5 crores, led by 5.4% YoY (-7.3% QoQ) increase in sales volume and improvement in realisation by 2.3% YoY (+0.7% QoQ). Capacity utilisation stood at 98% during the quarter (vs 96% in Q1FY26). Total cost/ton increased by 3.7% YoY (+6.9% QoQ) mainly due to increase in power & fuel cost and packaging cost. EBITDA/ton stood at Rs 678/ton which declined by 6.4% YoY (-27.6% QoQ). Subsequently, absolute EBITDA was down by 1.3% YoY (-32.9% QoQ) to Rs 342.3 crores. PAT stood at Rs 115.7 crore (-3.2% YoY, -60.7% QoQ)

View: Moderate volume growth of 5.2% remained as per our expectations because of limited capacity addition and already high-capacity utilisation. Operational performance was impacted due to higher costs mainly power and fuel and packaging costs. Going ahead, we believe that company’s volume CAGR over FY25-28E to remain lower-than-industry as company's next phase of expansion is expected to be commissioned in FY28-29E. Management expects some cost pressure in near term (guides Rs 70-80/ton cost increase in Q2FY27). However, company's profitability is expected to improve led by focus on operational efficiencies. Fuel cost is also expected to see some decline as company recently commissioned it's one coal mine and second is expected to be commissioned by FY28E. Longer term volume growth visibility also remains strong as the company plans to expand its capacity to 27.6 mtpa by FY29 (from 21.4 mtpa at present)

Impact: Neutral

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