Birla Corporation Q1 FY27 Results: Revenue Rises 7.4% To ₹2,669 Crore

In Q1 FY27, Birla Corporation's revenue increased 7.4% year-on-year to ₹2,669 crore from ₹2,486 crore. However, Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) declined 3.6% to ₹365 crore, while cash profit fell 3.2% to ₹298 crore.

Net profit also slipped 3.3% to ₹116 crore, compared with ₹120 crore in the corresponding quarter last year. The decline in earnings came despite higher sales, as rising power and fuel costs weighed on margins.

For the cement division, realisation improved 1.8% year-on-year to ₹4,947 per tonne, but EBITDA per tonne dropped 5.6% to ₹675, pulling the EBITDA margin down by 110 basis points to 13.6%.

Birla Corporation: Q1 FY27 Business Performance

Cement sales volume rose 5.4% year-on-year to 5.05 million tonnes, supported by healthy demand from the trade channel in Maharashtra, Uttar Pradesh, Bihar and Rajasthan. Capacity utilisation remained high at 98%, while sales through the trade channel increased to 82% of total volumes from 78% a year ago.

The company continued to strengthen its product mix during the quarter. Eco-friendly blended cement accounted for around 88% of total sales, while premium-grade cement accounted for 62% of sales. Premium cement volumes also increased by 18% compared with the previous year. Its most popular product line, 'Perfect Plus', had 24% higher sales.

Cement demand has recovered slightly since the second half of May, but manufacturers have been undercutting each other by rolling back some of the price increases implemented during the first few weeks. In an effort to cope with increasing energy expenses, Birla raised the share of the company's renewable power from 31% to 33%. During the quarter, it also commissioned a 5 MW solar power plant at Mukutban, which is expected to reduce carbon dioxide emissions by around 5,000 tonnes annually.

The company's jute business had another difficult quarter as record-high raw jute prices and supply shortages affected operations. Production declined 27% year-on-year after the division reduced working days. However, higher domestic and export sales helped Birla Jute Mills report a cash profit of ₹4.28 crore, although this was lower than ₹6.41 crore in the year-ago period.

Birla Corporation expects cement demand to remain subdued until the monsoon season ends, with recovery likely from September as government infrastructure spending and private construction activity gather pace.

How Did The Market React?

Since the results were announced on Saturday, the market reaction is yet to be seen. However, on 24 July, Birla Corporation's share price ended the day at ₹956.60 on the National Stock Exchange.

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