Kolkata, October 31: Cement major Birla Corporation Limited has reported a 58.9% decline in net profit for Q2 FY27, as the company has struggled with lower realilsations and inflated input costs. The company’s net profit declined to ₹37 crore for the quarter ended September 30, 2026 from ₹90 crore reported in the same period last year despite cement sales growing 7% year on year (YoY) to reach 4.54 million tonnes (mt) during the quarter.
The MP Birla Group’s flagship company has seen its EBTIDA decline 32.3% during the quarter to ₹482 per ton, as against ₹712 per ton reported last year. Even as the company maintained its capacity utilization for the quarter, the unprecedented increase in clinker prices, power, fuel and coke have affected its profitability. To mitigate this, Birla Corporation scaled up the use of green power and started extracting coal from its captive mine in Madhya Pradesh to keep costs in check, but that hasn’t worked as expected.
Over the quarter, the company has expanded sales of blended cement, which has accounted for 86% of total cement sales, with volumes growing 4% YoY from states like Maharashtra, Uttar Pradesh, Rajasthan and Bihar. Sales from its newly commissioned production facilities were encouraging as well, with its Kundanganj and Mukutban facilities rising 80% and 8% respectively.
With construction activities gaining momentum in October, realisations have started to improve, the company said in a regulatory filing. However, cost pressures are expected to persist, impacting the company’s overall profitability.
