Birla Corporation Limited reported a strong performance for the December quarter (Q3 FY25-26), delivering significant profit growth despite challenging market conditions and softer volume trends in key segments.
Executive Summary
Birla Corporation delivered a 71% year-on-year jump in consolidated net profit to ₹53 crore in Q3 FY25-26, driven by operational efficiencies and improved margins in the cement division, according to the company’s press release. EBITDA rose 18% to ₹312 crore, while revenue from operations moderated to ₹2,178 crore as demand remained patchy and industry pricing pressure persisted.
Management emphasized ongoing cost rationalization measures and optimisation of product and geographic mix as the company navigates subdued market conditions. Realisation per tonne in cement remained largely flat year-on-year, with blended and premium products gaining share.
Financial Highlights
Birla Corporation posted revenue of ₹2,178 crore in Q3 FY25-26, down 4.1% year-on-year. EBITDA rose 18.4% to ₹312 crore, driven by operating efficiencies, while net profit surged 71% to ₹53 crore. Cement realisation edged down to ₹4,754 per tonne, but EBITDA per tonne improved sharply to ₹702, reflecting stronger operating leverage.
Segment Performance Breakdown
Cement Division (Core Business)
- EBITDA margin expanded to 14.8% from 11.9% in the year-ago quarter.
- Overall cement realisation per tonne was largely flat, reflecting competitive pricing pressures.
- Sales mix shifts: Blended cement increased to 87% of total sales from 79% a year ago.
- Premium brand volumes grew with Perfect Plus up 19% and Unique Plus up 29% year-on-year.
- Cement volume for the quarter declined 5.8% to 4.23 million tonnes compared with prior year.
Jute Division
- Jute division trend: Despite strong sales growth, it recorded a cash loss of ₹2.14 crore due to raw material headwinds.
- The division saw higher revenue (+31%) supported by domestic and export sales.
Management Commentary
“Birla Corporation Limited registered a consolidated net profit of ₹53 crore in the December quarter, up 71% over the same period last year.”
The company highlighted cost optimization initiatives, improved blended and premium product sales mix, and efforts to boost capacity utilization across plants.