Birla Corporation Targets Growth in Cement Volumes and Strong Margins for FY26

Birla Corporation, the flagship firm of the Birla Group, is aiming for steady growth in the upcoming financial year 2025-26 (FY26). In an interview with CNBC TV-18, the company’s senior management said that they expected cement volumes to grow by 6–8%. The volumes will reach 19 to 19.5 million tonnes, up from around 18.1 million tonnes.

At 2:30 PM, Birla Corporation share price was up 3.38% and was trading at ₹1311.70.

Cement Demand Trends and Growth Outlook

While cement demand has cooled slightly since March 2025, year-on-year demand remains strong. The CFO of Birla Corporation told CNBC TV-18 that the company aims to match or outperform the overall industry's projected growth rate of 6–8% in FY26.

Financial Performance of Birla Corporation in Q4FY25

For the January–March 2025 quarter (Q4FY25), Birla Corporation reported:

• Revenue: ₹2,815 crore
• Profit: ₹257 crore
• Operating Margin: 18.99%

The company has also achieved an EBITDA per tonne of over ₹1,000, driven by stable realisations, reduced input costs, and internal efficiency measures. These include fuel mix changes and operational improvements worth ₹150 per tonne.

Regional Sales Mix of Birla Corporation and Realisations

Birla Corporation’s sales mix across India is:

• Central: 50%
• North: 18–19%
• East: 18–19%
• West: 13%

Prices improved in all regions, with stronger gains in the North and East. Realisations have remained stable on a blended basis compared to Q4.

Future Outlook of Birla Corporation

As per CNBC TV-18 news reports, the company expects incentives around ₹100 crore for FY26, with a boost expected from the Kundanganj Line 3 operations. Capex plans are in place for ₹1,000 crore this year.

Managing Debt and Investments

Birla Corporation expects to end FY26 with net debt of ₹3,000 crore. However, it focuses more on the debt-to-EBITDA ratio, aiming to keep it below 2. The company holds non-core investments worth ₹600 crore, which it does not plan to sell for now.

Conclusion

As per news reports, Birla Corporation is on track for healthy volume growth and improved margins in FY26. With stable prices, better efficiency, and manageable debt levels, the company is confident in its future performance. 
 
Read more on: Birla Corporation Shares Surge 20% on May 12, 2025 After Strong Q4 FY 2025 Results 
 
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