Birla Corporation Limited Posts 7% Revenue Growth in June Quarter as Cement Sales Hit 5.05 Million Tons

Birla Corporation Limited Posts 7% Revenue Growth in June Quarter as Cement Sales Hit 5.05 Million Tons​

Kolkata, July 25: Birla Corporation Limited achieved a cement sales volume of 5.05 million tons (mt) during the June quarter, marking a 5% year-on-year increase. The company's revenue for the quarter reached Rs2,669 crore, representing a 7% growth compared to the same period last year. While operational metrics show solid increases in certain segments, the net profit stood at Rs116 crore, reflecting subdued realization from cement sales and rising power and fuel costs.

The company maintained a high capacity utilization rate of 98%, driven by sustained gains in the trade segment across key states including Maharashtra, Uttar Pradesh, Bihar, and Rajasthan. The performance across various financial metrics for the Cement Division during the first quarter of FY26-27 is presented below:


Cement demand saw moderate growth in the June quarter, bolstered by Government infrastructure spending and momentum gained from the second half of May. However, intense market competition necessitated rolling back price hikes introduced earlier in April-May.

The company continued its strategic focus on expanding premium products. Eco-friendly blended cement constituted 88% of total sales volume, registering a 5% growth. Sales of premium products grew by 18% year-on-year (yoy), with the flagship brand, Perfect Plus, showing specific growth of 24%.

Sales from Kundanganj and Mukutban units of RCCPL Private Limited, a wholly owned material subsidiary of Birla Corporation Limited, increased by 26% and 12%, respectively, compared to the same period last year.

In terms of costs, realization from cement sales stood at Rs 4,947 per ton, up almost 2% yoy. Conversely, EBITDA per ton was 6% lower at Rs 675, largely due to a 5% increase in power and fuel costs. The Cement Division's EBITDA margin for the quarter settled at 13.6%, which is a decline of 110 basis points from the previous year period.

To mitigate the rise in energy prices, the company increased green power consumption to 33% for the quarter from 31% at the end of the last fiscal year. Birla Corporation Limited has commissioned a 5-MW solar power plant at Mukutban and is enhancing solar generation capacity at Birla Jute Mills from 2.1 MW to 2.6 MW.

Operational details regarding cement production and sales mix for the quarter are as follows:


Looking ahead, the company expects cement demand to remain subdued until August, with a recovery anticipated from September, supported by continued Government spending and private sector construction activities. Given capacity overhang and intense competition, further price hikes are deferred until the end of monsoons, and realization is expected to remain weak in the near term.

Jute Division Performance​

The Jute Division also faced challenges during the quarter due to record-high raw jute prices and acute supply shortages. Consequently, production was rationalized by reducing working days, leading to a decline of 27% year-on-year and 8% sequentially in production. Despite this operational constraint, the division reported a cash profit of Rs 4.28 crore, down from Rs 6.41 crore in the previous period. This was balanced by an 18% yoy increase in domestic sales revenue and 13% yoy growth in overseas sales.

Company Overview​

Birla Corporation Limited is a flagship company of the MP Birla Group, established in 1919. The organization has interests in both cement and jute goods. Its subsidiary, RCCPL Pvt Ltd, holds ten cement plants across eight locations nationwide, possessing an annual installed capacity of 21.4 million tons. Under the MP Birla Cement brand, the company produces a range of cement products and construction chemicals suited to various climatic conditions and consumer segments.

BIRLACORPN Stock Price Movement​

On Friday, Birla Corporation Limited shares edged higher to close at ₹956.60, gaining 1.81% in the session. The stock saw a daily trading range between ₹939 and ₹979 amid a volume of 199,139 shares.