Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Dalmia Bharat Limited (NSE: DALBHARAT) Q4 2026 Earnings Call dated Apr. 28, 2026
Corporate Participants:
Prassan Goyal — Investor Relations Lead
Puneet Dalmia — Managing Director & Chief Executive Officer
Dharmender Tuteja — Chief Financial Officer
Analysts:
Amit Murarka — Analyst
Unidentified Participant
Rajesh Ravi — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Shravan Shah — Analyst
Unidentified Participant
Unidentified Participant
Indrajit Agarwal — Analyst
Unidentified Participant
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the earnings conference Call of Dalmia Bharat Limited for the quarter ended 31 March 2026. Please note that this conference call will be for 60 minutes and for the duration of this conference call, all participant lines will be in the listen only mode. This conference call is being recorded and the transcript will be put on the website of the company. After the management discussion, there is an opportunity for you to ask questions. Before I hand over the conference to the management, I would like to remind you that certain statements made during the course of this call may not be based on historical information or facts and may be forward looking statements.
These statements are based on expectations and projections and may involve a number of risks and uncertainties such that the actual outcome may differ materially from those suggested by such statements. On the call we have with us Mr. Puneet Dalmia, Managing Director and CEO, Dalmia Bharat Ltd. Mr. Dharmendra Chuteja, CFO, Dalmia Bharat Ltd Ltd. Mr. Yatin Malhotra, CFO, Dalmia Simon Bharat Ltd. And the other management of the company. I would now like to hand the conference call over to Mr. Prasanth Goel, investor Relations lead.
Thank you. And over to you.
Prassan Goyal — Investor Relations Lead
Thank you. Good evening everyone. We’re happy to welcome all of you to the FY26 annual results industry call. As you would have taken a note of omission, this time we have made a change in the way we are holding our investor call. The purpose of this change is to present our investor tech during the call and share our perspectives and insights in an endeavor to make the overall interaction richer. Looking forward to a good discussion. Handing over to Puneet sir to take this forward. Thank you.
Puneet Dalmia — Managing Director & Chief Executive Officer
Thank you Prasanth. And good evening everyone. Happy to be back with all of you. Let me start with some thoughts about the Indian economy. As we all know, the India growth story remains strong and we continue to be one of the fastest growing major economies in the world marching forward to become the third largest economy in a few years. During the year, India’s macroeconomic fundamentals have demonstrated confidence driven by robust consumption and investment demand. At the same time, supportive fiscal deficit and robust forex reserve put India on a strong footing to navigate through any of the geopolitical geoeconomic headwinds.
As India progresses to become a 5 trillion economy by 2028 and achieve the vision of Vixit Bharat by 2047. We will need substantial investments in infrastructure and we are already beginning to see strong traction on this front. From industrial corridors and affordable housing to high speed rail and smart cities, progress is visible across the country. Central and state capex has also been increasing year on year. We strongly believe that this momentum is going to accelerate in the years ahead. As India grows, so does the cement sector.
I expect the cement demand to grow at a CAGR of 7 to 8% in the medium term. Let me now touch upon costs and cement prices. As mentioned in our earlier calls, the the cost trends for the cement industry were largely flattish in the recent past. However, this situation has changed due to the West Asia conflict. The industry is seeing cost impact in three key areas power and fuel packing bags and both inbound and outbound logistics. Petco prices have sold to about $160 per ton and rupee depreciation is an added impact.
Supply crunch of bags and rising cost of PP granules has led to increase in packing costs. Fuel costs have also gone up and there might be some more increases in the pipeline. Having said that, we are taking various measures internally to mitigate the impact of rising costs to the maximum extent possible. On the price side, we have seen improvements in the month of April in most of our key markets. We are optimistic that this positive momentum on prices will continue in the near term and could may well mitigate the impact of the cost increase.
Moving on to the company overview as you are all aware, we are the fourth largest cement pair in India with almost 50 million tons of cement capacity. In financial year 26 we delivered our best ever EBITDA of rupees 3083 crore and a BAT of 1157 crore. We have a diverse product offering catering to all consumer segments and are happy to share that we are adding a new premium product to our lineup called Weather365. With this new addition we are confident of strengthening our premium product offering to the end consumers and our channel partners.
We take pride in the journey of Dalmia over decades. We began our operations in 1939 with just 250 tons per day of cement capacity in the state of Tamil Nadu and today we serve over 23 states with our cement capacity close to 50 million tons. As you are all familiar with our geographical footprint, I will not go deep into that but in this slide we have included the status of our limestone reserves. As can be seen, we have sufficient reserves across all our regions in totality we have 2.7 billion tons of limestone reserves at our operational plants.
In addition to this, we have virgin mines across the country which will support our future expansion into new geographies and we are progressively augmenting our reserves as we go along. I want to now spend some time on our strategic priorities. Maximizing ROC from all our assets has been one of the top agenda items for the company and most of the management bandwidth is being deployed to drive this capacity expansion. And becoming a Pan India player is a key strategic priority. All our announced projects in south and west are progressing well.
We are now working on new projects to reach the 75 million ton capacity milestone. We will share details of the same with all of you in the near future. Our balance sheet is our strength and as we pursue our capacity expansion journey, we would be extremely mindful of continuing to maintain a healthy balance sheet in future as well. We are committed to have the highest corporate governance and a strong organization culture. Both of these will continue to guide our actions as we take Dalmia from strength to strength.
I will now hand it over to Dharmender to take you through the progress on our operating parameters. Thank you.
Dharmender Tuteja — Chief Financial Officer
Thank you. Good evening everyone. Please pardon me for my sore throat today. Just to reemphasize what Niti just mentioned, delivering high returns on capital employed is a key strategic priority for us and we are addressing this on multiple fronts. Delivering industry leading volume growth backed up by strong value proposition for our channel partners and customers is the key to higher capacity utilization. We have recently refreshed our brand identity and have adopted a new logo keeping pace with the new Bharat of of today and tomorrow.
We are doubling down on our efforts towards premiumization at both product and price level. Various initiatives are being taken for better channel engagement and offering reliable delivery to our partners. We have also made positive stride on our cost leadership in this quarter. We delivered the lowest quarterly total cost quarter in the last five years, which demonstrates our unwavering commitment to be one of the lowest cost producers. We’ll talk a bit more about cost in the coming slides. Now let me give you a brief snapshot of our Rosie performance for ease of understanding the numbers.
We have categorized our capital employee into core cement operations and non core line items. The key components of non core line items are CWIP of about 2500crores, intangibles arising out of group restructuring, another about 2100crores. The rest is largely treasury investments partially mitigated by deferred tax liabilities in financial year 26. We have been able to improve our ROC from core cement assets by more than 200 basis points, going up from 9.9% to 12.1%. As more of our projects get commissioned, the CWIP value will keep getting converted into core cement assets and start generating strong returns.
Our ongoing expansion projects at Belgium and Pune as well as Karakpa will take our cement capacity to 61.5 million tons per annum in the next 18 to 20 months. Civil work at Delga project is complete while ENI work has started. They’re actually expecting commissioning a little ahead of our earlier announced schedule. Ordering for all key equipments at Kadapta project is already done. There have been some minor delays in Q4 26 which have also resulted in lower than planned cash outflows during the quarter.
Things are now back on track and we are confident that we will be able to commission this project somewhere between Q2 to Q3 of FY28. Progress on Pune Gu and Chennai Gul terminal are also progressing satisfactorily. Total cash outflow on account of project CAPEX has been about rupees 3200 crores in the last two financial years. With all projects picking up phase, we expect expansion linked cash outflow in FY27 to be in the range of 2200 crores with a total capex outlook for FY27B being 3200 to 3400 crores.
Moving to our performance for the year, we have closed the year with 2% volume growth and 6% revenue growth. We delivered ever highest EBITDA of 3,083 crores up 28% versus previous year. Our pack in FY26 was around 27 crores which is a jump of 65% versus previous year. Let me now cover each grid trick in the following slides. During the quarter our sales volume grew 3% y to 8.8 million tons. Trade percentage for the quarter was 67% and our premium product share was 24%. We’ll continue to drive the agenda of premarition aggressively in FY27 as well.
Revenue from operations improved driven by both realizations and volume growth. Although our realizations appear flattish, it has actually improved by about 1.7% on a QoQ basis if we adjust the one off incentive accrued last quarter amounting to Rs. 46 crores. Our incentive accruals during the quarter were rupees 45 crores. Total incentives outstanding at year end has increased to 839 crores as collections for the quarter were subdued at just Rs. 14 crores. This was due to delays and payouts by a few state governments on account of elections.
We expect this to normalize soon. Raw material cost per ton of Production reduced by 1% bioi to Rs. 734 per ton. This is despite the additional levy of mineral tax in Tamil Nadu at rupees 160 per ton. Compared to previous quarter, raw material cost has come down by 6%. Our blended ratio has improved to 83% during the quarter which led to marginal improvement in CC ratio as well, the power and fuel cost per turn of production has reduced 6% versus previous quarter. Despite cost headwinds, we have been able to mitigate inflationary pressures with mix optimization and other initiatives.
On full year basis, our cost per ton is not Share of renewable energy jumped from 39% in Q4 last year to 47% this quarter while fuel costs stood at 1.36 rupees per mill per kilo. Given the volatile environment, we will continue to focus on all big and small initiatives to keep power and fuel cost in check to the extent possible. We continue to deliver one of the lowest logistic costs in the industry and have further improved on that. During the quarter our cost declined 6% yy to rupees 10. 64 per ton.
Driven by multiple initiatives, we achieved highest ever direct dispatch share during the quarter at 65%. As we move forward, we’ll continue to balance the twin objectives of reliable service to our customers and cost excellence. During the quarter other expenses increased by 4% by 694 per tonne primarily due to increase in packing cost towards the end of the quarter. If you look at the total cost level, we have continued to deepen our position as one of the lowest cost cement producers happy to share that Q4 per ton cost is the lowest quarterly cost in the last five years for Dalmian at reported cost basis, our cost per ton since Q1FY25 has come down by Rs.
183 per ton from 3973 to 3790. If we see on adjusted basis that is after going impact of Tamil Nadu mineral cess and fuel prices, the fall is even steeper I.e. Rupees 211 per ton. On a full year basis FY26 adjusted cost is lower by Rupees 100 versus FY25. This decline is in line with the guidance we had given fewers back and as we look forward we are confident of further improving on our cost trajectory since cost reduction is a continuous journey in a very dynamic environment, we don’t want to guide the speed.
However, internally we will always keep looking to deliver rupees 50 to 100 cost takeout on an annual basis. Going forward, our EBITDA has grown to 9 and 2 crores driven by all key levers I.e. Volume realization and cost. The jump in EBITDA is 14% versus previous year and 50% versus previous quarter. EBITDA per turn was Rupees 10, 23 against the reported Q3 number of A23. However, adjusted for the one off incentives of 46 crores last quarter, EBITDA has improved by Rs. 260 per ton on a sequential basis.
As mentioned, balance sheet health is a key priority. Our net worth, our net Debt stands at 1428 crores translating to a net debt to EBITDA of 0.46 times which is well below the threshold level of 2 times as per our capital allocation framework. Sustainability is central to how we operate and grow as a company. Our net emissions has been one of the lowest among the cement companies globally at 471kg. Our DGSI score has also significantly improved to 70 this year. We continue to scale up our renewable power capacity at a strong place adding around 180 million megawatt this year.
We will also be commissioning at 128 megawatt of RE capacity soon which will take us to 576 megawatt renewable energy capacity. This will further increase our share of renewable power consumption and reinforce our commitment to sustainability. This is just a glimpse of some of the CSR interventions across our locations. We take immense pride in the impact we bring to the lives of people we touch and we’ll continue our relentless focus in this area. Talking about governance, we have a strong board construct at the company which brings diverse expertise and reputation.
The layer below the board is the executive committee with seasoned professionals bringing together diverse industry expertise and functional strengths. And some of the best teams in the industry are engaging us either as auditors or giving us assurances and ratings on various parameters. Talking about continent liabilities, our tax related liabilities have come down drastically. In FY26 there was increase in mining and neutral related matters, details of which will be covered in our annual report.
Our total contained liability as Percentage of equity is 6% which is amongst the best in the industry. Last on the key legal matters, one of the key positives this quarter has been the progress in the ED land attachment case. The alleged proceeds of crime have been substantially reduced from rupees 793 crores to R93 crores, which is nearly a 90% reduction. The ED has also ordered for the release of the entire land parcels by substituting the same with a bank guarantee of equilater amount of 93 crores.
With this, I open the floor for question answers. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, please use the raise and feature available on Zoom. When it is your turn, you will be unmuted and announced. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take our first question from Amit Murarka from Access Capital. Please go ahead. Amit, please unmute. Yes, please go ahead.
Amit Murarka
Yeah. Hi. Thanks for the opportunity. So just firstly, on the volumes like this quarter, you had some impact of the capacity, the kiln shutdown, but generally speaking, also in the last couple of years there has been continued market share loss. So what is the outlook that we can expect on volume and market share, let’s say in the coming couple of years?
Puneet Dalmia
I think as I’ve said earlier, you know, we want to look at, you know, profitable volume growth this quarter. You know, we had a sh. We had a unexpected breakdown in East India and we lost, you know, some volume on account of that. But we have commissioned new lines in Northeast and we are also going to commission our line in Benoit this year for all these new investments. Our priority remains to increase capacity utilization as fast as possible. And I think we will continue to ensure that we are able to scale up the utilizations in the right markets.
And as I said, in some markets we have to improve the quality of sales, which we have been doing. And you’ve seen that in our profitability. So, you know, it’s a work in process. And overall I think we are pretty happy with the progress that we are making.
Amit Murarka
Sure. Thank you. Just. And one more question on capacity. Like usually like there was a chart talking about 70 million tons and 110 15. So this time it’s missing. So how to read that and what’s the current targets on capacity now
Puneet Dalmia
As I said, I think our first milestone is, you know, by financial year 28 we want to be 75, you know, so we are continuing to work on that. And our long term target also remains the same as we had outlined earlier. There’s no change.
Unidentified Participant
Just to add on the yet I think Puneeji covered his opening remark that we are pretty much on our way to chase 72 to 75 million ton in the next two years by FY28. So that is pretty much a milestone that we are achieving. So it’s not missing 110, 30 million milestone. You know, we will be declaring more as we go along. So you know, even that destination as a part of being a Pan India player is pretty much.
Amit Murarka
And just the last question if I may. So there has been a lot of cost inflation due to the West Asia crisis. How are you placed to combat that? And if you could give like some guidance on the cost inflation that you expect in Q1 and Q2.
Unidentified Participant
So I mean we have done this assessment actually. You know, as you have seen our cost numbers for the quarter have been, you know, really good. I think we, there are challenges, there are headwinds as mentioned on power and fuel, on packing and little bit on logistics. Also overall, if you were to see versus Q4 to Q1, we are expecting an impact of somewhere between 125 to 150 rupees per ton. But that is, you know, what’s coming and you know, something we have to handle. We are working off on ways and means to mitigate this in terms of our fuel mix, in terms of our, you know, other initiatives and logistics to mitigate these impacts.
So we will see how the quarter pans out. Right now we are looking at a risk of 125 to 150 on the horizon and we are in the process of mitigating this.
Amit Murarka
Thanks a lot.
Operator
Thank you. Our next question is from Rajesh Ravi from HDFC Securities. Please go ahead.
Rajesh Ravi
Evening. Am I audible?
Operator
Yes.
Rajesh Ravi
Yeah. So wanted to ask in the presentation you mentioned the like to like cost, you know, opex led efficiencies. It’s 100 rupees per turn which is received achieved in FY26. Is this reading correct?
Unidentified Participant
Reduction
Rajesh Ravi
In FY26 on the efficiency basis you have achieved 100 rupees cost reduction, right?
Unidentified Participant
Yeah, yeah. On an annualized basis, year to year, 100 rupees the reduction. Yeah,
Rajesh Ravi
Annual basis.
Unidentified Participant
And
Rajesh Ravi
What more is expected or targeted for FY27?
Unidentified Participant
So you know, actually we guided roughly I think four quarter eight quarters ago, you know, on the path we have to do. We have lived that journey as we have shown. You know, if you were to look at Q4 to Q4 on a registered basis we are looking at 125, 130 rupees. As a, as an organization we are chasing cost reduction. I would say on a continuous basis. Internally we are targeting as punishi mentioned somewhere between 50 to 100 rupees take out every year. So I think that’s the way we want to see it.
We don’t want to see it like a permanent, you know, milestone. It’s a, it’s a moving target and we need to keep changing more and more as we go.
Rajesh Ravi
Understood. And the 125 to 150 cost increase expected in Q1 over Q4. Could you break it up between packaging and fuel cost? What sort of numbers you’re looking at?
Unidentified Participant
I can give you an indication. I think the entire industry is, we have the same numbers. Packing would be somewhere between 80 to 90 bucks and the balance would be straight between logistics and power of you.
Rajesh Ravi
So this power and fuel, the current inflated 30 odd or factoring in the rupee depreciation some 40% increase. If suppose the prices were to hold on at the current level, since when would that start hitting numbers?
Unidentified Participant
So a part of it has already started hitting but you know, it’s, the question is how do we respond to those increases. I think we have been able to, you know, optimize our fuel mix to make sure the impact is mitigated. And that is exactly what we look at for the one. So it is not that the high costs have not started to impact us. These are alternative ways of sourcing and the fuel mix that is basically the lever to mitigate things.
Rajesh Ravi
So can you explain work out the what was the fuel mix in Q4 and what is the at least Q4 and how you’re looking.
Unidentified Participant
We can speak offline and I can give you those numbers.
Rajesh Ravi
Sure, sure. Next question comes on the, you know the capex you have spelled out 2200 crore capex for FY27. So incremental. This is only for the ongoing project. So for full year, what sort of number total capex for FY27 we are looking at
Dharmender Tuteja
13 crores.
Rajesh Ravi
Sorry. Okay, okay.
Unidentified Participant
This is all the announced projects. There’s 30 to 3400 but as you know we mentioned we would be coming out with more announcement.
Rajesh Ravi
Okay, and one last question. I
Operator
Request you to join back the queue please as we have participants waiting for their turn. Yeah,
Rajesh Ravi
Yeah,
Operator
Y. Thank you. Next question is from Satyadeep Jain from Ambit Capital. Please go ahead.
Unidentified Participant
Hi, can you hear me?
Puneet Dalmia
Yes,
Unidentified Participant
Hi. So first question is on that 75 million done that you mentioned, can you maybe come in in the next two years? Can you talk about what options you’re looking at? Where are you in the ordering stage?
Puneet Dalmia
I think we can’t talk right now. You know, we’ll share with you whenever you know,
Unidentified Participant
But you by the end. Sorry,
Operator
We are getting some disturbance on the call.
Unidentified Participant
Just confirming that 75 million target by the end of FY28. Right?
Unidentified Participant
Yeah, we are pretty much chasing that mentioned that, you know, give or take a quarter here and there. Give or take a few million there and there. That is what we are.
Unidentified Participant
Okay, just on the ex investment. I. I know the shape. It’s also been dogged down by all these news around market coupling. But what’s your expectation on the remaining stake that you have?
Unidentified Participant
We have said that IX can occur a set for us and we have to, you know, we are waiting for the right opportunity to do that and we will do that. We’ve
Puneet Dalmia
Already liquidated half a position and I think the balance position also we will liquid as and when we find the time.
Unidentified Participant
Okay, thank you so much.
Operator
Thank you. Next question is from Pratik Kumar from Jeffries. Please go ahead. Give me a moment. Please. Kindly unmute and go ahead with your question please.
Unidentified Participant
Yeah, greeting. Congratulations for great numbers. My first question is on your clinical utilization. Can you give clinker utilization for the year and if clinker utilization in specific regions impacted volume growth for the quarter?
Unidentified Participant
We don’t share the capacity utilization for clinker and that we will not go there. I think we have made quite a lot of additional projects in this time are invested. Right, but this is something that you want. But I think we do share a CC ratio. I think that can give you an indication of.
Unidentified Participant
But that is not a factor which impacted your volume growth this quarter.
Unidentified Participant
Sorry, can you repeat your question?
Unidentified Participant
But is this not a factor which would have impacted your volume growth in peak quarter which is this quarter?
Puneet Dalmia
Yeah, we’ve already said that in our slides that you know there was about, you know, an unexpected one off breakdown which has resulted in a 3% y growth lower.
Unidentified Participant
Pratik, in quarter three we registered a 10% volume growth. I think we were able to exhibit performance a little ahead of industry. Quarter four started on a high note in the month of March. As you would have seen in our intimation stock exchange. We actually had a breakdown. We lost roughly 1.5 lakh tons of link currency, 100,000 of SE and that is the reason that you see subdued growth in quarter four. I think in the long term basis, I think we are very optimistic that we’ll get back to our sale growth momentum and you know, outperforming the industry in the coming quarter.
Unidentified Participant
Other question is on pricing. We talked about price increases in the month of April. So is enough to cover the cost inflation expected over next two quarters. How do you think about that?
Puneet Dalmia
Look, we are in a dynamic world and nobody knows what the cost inflation will be. But if I look at the first, you know, fortnight of April so far, whatever other cost increases we’ve been able to pass on through the price increase and we are quite hopeful that this will sustain so largely, you know, hopefully we should be able to protect the markets. But again, it’s a dynamic world. We’ll have to see how the, you know, prices behaves and will the energy prices cool off, will the carry on supply chains become more reliable?
We have to see all of that. But as of now, I think, you know, the impact of cost has been possible.
Unidentified Participant
Sure. Thank you. These are my questions.
Operator
Thank you. Next question is from Shravan Shah from Dalit Capital. Please go ahead.
Shravan Shah
Hi sir. Sir, is it possible to quantify both trade non trade hike in your core operations of the regions in April?
Unidentified Participant
Do you want us to share what
Shravan Shah
Cement price hike taken by you or the industry in April in your core regions?
Unidentified Participant
I think it’s a moving number. You know, it’s not that, you know, one market, one price is stable. So but overall, as you know mentioned, the prices have happened and we are looking at recovering more than the cost. But that will be absolute.
Shravan Shah
Okay. And sir, given that now for, for the expansions kappa that previously we are looking at Q2FY28 that now we are saying it could be a Q3FY28 also. And at the same time we are still not announced the next expansion to reach a 75 million ton. But still we are sticking to it. So what gives the confidence? Because that’s the one thing which is not even if when you announce and whether it will be we will be able to reach a 75 million ton. Can you, can you help us more there?
Unidentified Participant
I would just say that you have to take confidence from our confidence to do this. As I said, you know, this could be a couple of quarters here and there, a couple of million tons here and there. But just wait for us to come up with more announcements and then we’ll be able to share more details. But as of now, I think you know, one quarter, you know, we also said welcome is a little ahead of schedule.
Operator
Can you please mute your connection? There’s a lot of background noise from your line. Yeah, sorry sir, please go ahead.
Unidentified Participant
Yeah, yeah. As I said, you know, might be a little delayed. Welcome a little ahead of time. By and large the story is intact in the next 8 to 9 quarters we are looking forward to reach somewhere between 70 to 75 million
Shravan Shah
Sir on the volume growth I understand in last two years also just a 2% kind of a growth. Sir, is it possible to say that we are seeing 7, 8% kind of a industry growth for a couple of years for us for FY27 28 how one can look at will it be a still lower than the industry growth or at par or better than industry growth?
Unidentified Participant
We are aiming to deliver better than industry.
Shravan Shah
Okay and the capex for FY28 would be once we announce a broader would be the last time we said 2728 put together would be a close to 9000 odd crore. So that way one can look at
Unidentified Participant
Last time we said that for the next two years we’re looking at 3,000 to 3,500 every year. So I think that’s pretty much we are what we are saying today also three new announcements
Shravan Shah
Because that math will not tell you if we want to reach up or add another 10 odd million ton to reach that we need to do a decent capex. So at least 6,7000 crore to reach that. So
Dharmender Tuteja
Let’s wait for the next announcements. We have said this is the capex without any new announcements.
Shravan Shah
Okay. Okay. Thank
Operator
You.
Dharmender Tuteja
Thank you.
Operator
The next question is from Siddharth Mehrotra from Kotak Securities. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Just wanted some sense of the breakup of this capex guidance for 2027. So roughly just 3200, 3400 odd crores. If you could help me understand different projects, maintenance capex, any other capex such as renewables that would be very helpful. So that’s my first question.
Unidentified Participant
So I think in the day I think covered that you know 32 to 3400 is the overall guidance. Roughly 2200 to 2300 would be on account of the expansion projects. So I think balances by and large you know are regular capexes and plants. That’s the way it is and any further details we would rather avoid. I think our balance sheet will keep talking as in when we spend those.
Unidentified Participant
Okay so basically the thousand crore which is over and above the projects announced. Basically maybe we can split them half into maintenance capex and half into efficiency projects. Is that the correct way to think about it?
Unidentified Participant
Also some land options. This, this 50, 50 is not the right way but I think we can keep it at that. That the thousand road would be for our regular operations.
Unidentified Participant
This will, this will
Unidentified Participant
Be a mix. You know this is A moving thing. You know there are return capex expansion, you know, some small futuristic Capexes and maintenance capexes. We don’t want to split here beyond.
Unidentified Participant
Understood sir. And out of this total capex of like 6800 odd crores for the two announced projects already roughly what proportion of capex is the pending?
Unidentified Participant
Capex is pending?
Unidentified Participant
Yes. What proportion of this 6,800 crore of capex is spending for us pertaining to these projects which have already been announced?
Unidentified Participant
We won’t have that percentage handy. You know the way we increase so the projects keep running and the payment cycles keep coming. You know after a while. So what cash offers happened versus what is the progress done on the project are two different numbers. We won’t have that handy. But I don’t think we should worry about that. Just look at, you know the commissioning outlook for the organization. We are on track as we have said. And that’s, you know, where we would want to leave it.
Unidentified Participant
Got it. So thanks for this. Just one small sort of query. Do we sort of expect any meaningful change in fuel mix to happen over the next say two or three quarters? Like is that something which is possible and if yes, what would be the possible quantum of the shift?
Dharmender Tuteja
Can you repeat the question please?
Unidentified Participant
Sir, are we expecting a meaningful change in the fuel mix to happen? Say away from petrol maybe higher coal mix, higher efr. And if that is the case, maybe can we sort of quantify what sort of change in mix will happen? The fuel mix
Dharmender Tuteja
Situation is quite dynamic. Region to region, plant to plant. I think any kind of guidance may not hold true after that.
Unidentified Participant
But directionally, you know as pit folks get more expensive we have to look at alternate cheaper. That’s what we are doing. Wash hole and local pit folks and alternate. That’s directly what we achieve.
Unidentified Participant
Got it. Thank you. Thank you for your time. Thank you.
Operator
Thank you. Before we take the next question, would like to remind remind participants to ask a question. Please use the raise hand feature. Next question is from Jainam Shah from Insect Securities. Jam. Please go ahead with your question. Jam. We unable to hear you. Since there is no response. We’ll move on to our next question from Saket Kapoor from Kapoor and company. Please go ahead. Saket, can you please unmute your connection?
Unidentified Participant
Yeah. Namaskar sir. Hope I’m audible.
Operator
Yes.
Unidentified Participant
Yeah. Thank you sir. Firstly if you could give some color on the the capacity addition for the industry as a whole for the year ending March 26th and what is envisage as the capacity addition for the current year
Prassan Goyal
Which are in the
Unidentified Participant
In the pipeline. Yes.
Prassan Goyal
Yeah, second person here. So, so if I just you know probably talk about the entire industry. I think the civil industry is adding somewhere around 160 to 160 million. The audio
Operator
Is not very clear.
Prassan Goyal
Saket, just to repeat again I’m seeing that project industry as a whole, the cement industry was expected to add somewhere around 160 to 170 million ton of capacity between 26 to 28 and out of that around 40 odd million ton has been commissioned in 26 so far. So somewhere the balance of around 110 to 120 odd million tons of the capacity is expected in the next two years.
Unidentified Participant
And sir, in terms of the, in terms of the average utilization, if you could just give some color on how the utilization for the industry has been for a year ending March 26th.
Prassan Goyal
So as of now most of the companies are yet to announce the results so it would be a little difficult to estimate that. But broadly we have seen as a trend industry, you know somewhere operates between 65 to 70% of inflation and we believe that that can of a similar ballpark number in this year
Unidentified Participant
As, as you alluded in your presentation about the benefits that we have we have garnered out of the cost reduction exercise. But now with the, with the inflationary trends in Pet Petco prices and even industrial diesel prices being being hiked earlier. So are these gains will be bend out in, in the times to come or what should be our trajectory in terms of cost reduction per turn? I think so. We did some very good numbers last year. Where do we you see ourselves placed for the current year in terms of the inflationary trends which we are witnessing currently?
Unidentified Participant
I don’t know Circuit, how to answer this question. We have said we are chasing 50 to 100 rupee reduction internally. This is our initiatives. What happens externally is something that you will have to see and you know break in our numbers as a metric. So that’s where we’ll have to leave it for any modeling that we want to do. I think both these line items have to be models.
Unidentified Participant
Come again sir?
Unidentified Participant
I am saying we are changing internally as we said 50 to 100 rupees cost take out every year. That’s internally what you want to chase. What happens as an external impact in terms of inflation and headwinds you will have to factor in as and when they comment.
Unidentified Participant
No sir, you’re correct there. But what I was trying to make sense is how have the inflationary trends affected our gains that we have booked last time because of the cost reduction exercise. With the type of inflationary trends currently we have, how much have that being mitigated?
Unidentified Participant
I think you can look at the the right hand side of the chart where you see shown, you know, adjusted numbers for the Tamil Nadu says and Petco. That is the right way for you to understand our operations, the performance.
Dharmender Tuteja
And as covered in remarks also earlier that we expect about 120 to 150 rupees increase in the coming quarter which is imposed on us by the environment.
Unidentified Participant
Right, sir,
Operator
Thank you.
Unidentified Participant
Thank you.
Operator
Next question is from Indrajit Agarwal from clsa. Please go ahead.
Indrajit Agarwal
Hi. Hi sir, thank you for the opportunity. I have one question, actually two questions. One, how has the demand trend been in April so far? I know it’s too early, but given the price hikes across commodities, are you seeing any weakening of mainly ISB demand?
Puneet Dalmia
I think, you know, demand in April seems to be holding up, you know, in cement. We have usually seen based on our past experience that even if there is a slowdown, it takes some time to, you know, feel the slowdown in the industry because the existing projects keep getting completed, the new projects could get effort and similarly, you know, when the economy picks up for acceleration, maybe. So I think it’s too early to decide whether there’s a slowdown or not in April. I think the effects in my view will get, you know, visible in probably a couple of quarters.
So in month to month ak, I don’t think we can conclude anything. I think maybe H2 will be the real test of, you know, what’s going to happen. It’s too early to say. Right.
Unidentified Participant
But as Puneetji mentioned, for the full year we’re looking at a decent demand. So we are hopeful. And anyhow, we had a little lower base also last year in quarter one and quarter two on account of high. Let’s see. We are optimistic on the demand scenario.
Indrajit Agarwal
Sure. And we are confident of growing ahead of the industry for F27, right?
Unidentified Participant
Yes.
Indrajit Agarwal
My second question is on availability of key raw materials like let’s say Pet Coke, which is imported or PVC granules. Are you seeing any issues with that? Pricing aside, but is availability of some of these raw materials are concerned now
Dharmender Tuteja
The cost has gone up and supply disruptions we have been able to overcome through timely interventions. We have not faced issues in terms of availability. I don’t foresee that problem to come. But cost cannot be controlled at this.
Indrajit Agarwal
Sure. And one more if I may, what would be the sensitivity of freight cost to diesel price increase? Let’s say if there’s a 5% diesel price increase, pump price increase for how much could the freight cost go up?
Unidentified Participant
Typically I think if you have to do the formula every 5,000 jump to 15 rupees per ton for roughly that’s the ballpark.
Indrajit Agarwal
So 5% rise in diesel price is 50 rupees per turning cost 51
Unidentified Participant
5.
Indrajit Agarwal
Yeah, yeah, one thing. Right. Thank you. That’s all from my side.
Unidentified Participant
And just to the first point, I think the situation in March was a little tough for the industry. I think we take a lot of pride in the way we have been able to navigate the month of March and you know, without, you know, taking too much pressure on cost at the same time ensuring regular supply. I think we have played this game well and I’m confident.
Indrajit Agarwal
No, this is very helpful. Thank you so much.
Operator
Thank you. Next question is from Harsh Mittal from MK Global. Please go ahead. Harsh, please unmute yourself. Yes, please go ahead.
Unidentified Participant
Thank you. Thank you for the opportunity. First question is that in the slide number 11 we have mentioned that our lime is more than 48 years in the southern region. So sir, as per public data we have seen that Dalia has been selected as the preferred bidder in multiple mines in Tamil Nadu in the month of February this year. So does this reserves include the reserves born recently?
Unidentified Participant
Yes. Yes sir, sure.
Unidentified Participant
What would be the quantum of the results which we added if you can share that data?
Unidentified Participant
Quantum? I don’t have it offhand much.
Unidentified Participant
Okay, second question. Sir, our cement and clinker there is a mismatch in the particularly in the northeast region. So do. Do we expect any grinding capacity addition in the east region as part of your 72 to 75 million tons plan?
Unidentified Participant
Yes, I think you can expect that little bit for more announcements. But yes, you are right and we might be looking at a granting capacity
Unidentified Participant
Any the size of the grinding capacity. Sorry, if you can, will it be 2 million ton? 3 for any capacity. If you can just share,
Unidentified Participant
I would suggest let’s wait for the opportune time to have a chat.
Unidentified Participant
Sure sir. Thank you. These were my questions.
Operator
Thank you. Next question is from Rajesh Ravi from HDFC Securities. Please go ahead.
Rajesh Ravi
Two questions. One, if I am I audible?
Dharmender Tuteja
Yes. Yes.
Rajesh Ravi
Yeah. So if I look at the change in the assets on the annual basis I see a number of, you know, much higher number of around 3, 500 crores. Whereas in the Capex outflow has been close to 2000 crore for the full year. Could you reconcile why there is a sharp difference of 1500 crore between the two numbers?
Unidentified Participant
I think There is one more line item that you need to look at the other financial liabilities. A lot of CBIPs that we have incurred during the year is still standing as payable in our books. And that is actually one reason that, you know the, the guidance we gave earlier in terms of the cash outdoor capex is much lower in this quarter. And you know, as you were, you know, we all know towards the end of, you know, this entire geopolitical situation started. So I think we have just differed our cash flows a bit and that is sitting in a liability.
Then that should get sorted in the next couple of a few months and quarters.
Rajesh Ravi
Understood. So this 3,300crore capex outflow which you’re targeting for FY27, that includes this one or this will be over and above the, you know, thousand crore odd or whatever number which is sitting as liabilities in FY26N.
Dharmender Tuteja
Yeah. Next year number includes the liability of this year which will get paid up next year.
Rajesh Ravi
Okay. So in fresh capex amount would be much lower. Is this understanding correct? For FY27
Unidentified Participant
This would be cycling. So you might. We would actually see the opening closure in a similar way.
Rajesh Ravi
Okay. Okay. And last question from my end would be on the recent, you know, news going on there is sfios, you know, filed has tried to reopen the mutual fund case and I think MCO MCA has initiated or have instructed relevant bodies to reinvestigate. Could you please throw some light if there is any progress or you have as a company received any notice from the relevant authorities?
Unidentified Participant
Yes, we can’t be responding to Dumas. If there’s anything that has to be reported will be reported in the proper manner right now. So nothing has come at a company
Rajesh Ravi
Level.
Dharmender Tuteja
We
Unidentified Participant
Have
Dharmender Tuteja
Not received any communications.
Rajesh Ravi
Okay, understood. That’s, that’s nice. Yeah, that’s all from my end. Thank you.
Operator
Thank you. Next question is from Hiten Borisha from Sequent Investment. Please go ahead. Please unmute your audio.
Unidentified Participant
Am I audible now?
Operator
Yes, please go ahead.
Unidentified Participant
Yeah, sorry, I was on mute. Yeah. So I have only one question. Most of the questions have been answered. So sir, you mentioned we have took a price IP in April which all the cost has been passed on. So if you can quantify what is the total price we have took in April so far
Puneet Dalmia
We are still in the middle of April. I think we’ve already said that. You know, so far we have been able to pass on the cost increase through price size and hopefully we should be able to maintain it and there should be no margin compression.
Unidentified Participant
Okay. Okay, thank you.
Operator
Thank you. Ladies and gentlemen, we request you to limit your questions to two at a time please. Next question is from Shravanshah from Dalit Capital. Please go ahead.
Shravan Shah
Hi sir. Our CC ratio if I Look at last two years of almost it has. Has declined from 1.7 to now 1.6. So any specific reason and will it remain here or. We will try to increase.
Puneet Dalmia
I think again it’s a dynamic situation. We will take a call market to market. But our long term goal is to increase the CC ratio and you know, so quarter on quarter I don’t think we can look at this discussion and our endeavor will be to improve it.
Shravan Shah
Yeah. Because I. I look at for last two years. So in two years it has from FY24 till FY26. In almost three years it has declined. That’s what I asked here. I am not looking at on Q. No issues last sir, incentive for FY27 in terms of book would be around 200 crore.
Unidentified Participant
Yes
Unidentified Participant
Please.
Shravan Shah
Okay. Okay. Got it sir. Thank you. And all the best.
Puneet Dalmia
Thank you.
Operator
Thank you ladies and gentlemen. We’ll take that as the last question for today. I now hand the conference over to Mr. Puneet Dalmia for closing comments over to you.
Puneet Dalmia
Thank you. I think we’ve had a, you know, very good year in terms of profitability and a fourth quarter also. We’ve done the highest ever EBITDA over 900 crore this quarter and we’ve got 3000 crores for the first time. Our capex is ongoing. We are, you know, very optimistic about the future of the Indian economy. And we will continue to invest behind the growth in India. There will be headwinds along the way. And I’ve always said that this is not a straight road to paradise. There will be bumps along the way.
We will navigate those bumps as we’ve shown resilience over the last 80 years. You know, we’ve never been more excited about the future as we are now. And I’m also very happy that our executive committee and our team is coming together very well. So thank you for your interest and I look forward to continuing this conversation in the coming quarters. Thank you.
Operator
Thank you members of the management team. On behalf of Dalmia Bharat Limited that concludes this conference. Thank you for joining us and you may now exit the meeting. Thank you.