Dalmia Bharat Swings to Q2 Loss, Revenue Rises 4.3% Year-on-Year

Dalmia Bharat Limited swung to a loss in the second quarter of the current fiscal year, reporting a consolidated net loss of Rs 205 crore for the July-September period. The quarter ended in September 2026, covering fiscal year 2026-27. A year earlier, the company had earned a net profit of Rs 239 crore in the same quarter.

The company identified two main reasons for the decline: a fall in the value of certain assets and one-time exceptional expenses related to a separation programme for employees.

Despite the loss, revenue from operations grew 4.3 percent year-on-year to Rs 3,563 crore, up from Rs 3,417 crore in the corresponding quarter of the previous year. Revenue growth, however, did not translate into stronger operating performance.

EBITDA, which measures earnings before interest, tax, depreciation and amortisation, dropped 29.2 percent year-on-year to Rs 493 crore from Rs 696 crore. The EBITDA margin consequently fell to 13.84 percent, against 20.37 percent in the same quarter last fiscal.

The company's regulatory filing showed an impairment loss of Rs 282 crore for the quarter. This followed a fresh assessment of the recoverable economic value of some assets. The loss was primarily linked to three captive power plants, and it signals a move toward a higher share of low-cost renewable energy. The charge also included a write-down in the value of a brand that has been shut down.

Dalmia Bharat also introduced a separation scheme for eligible employees at select units. The scheme resulted in a one-time expense of Rs 57 crore during the quarter.

In total, these two factors caused one-time exceptional expenses of Rs 339 crore in the September quarter, which significantly affected profitability.

The board of directors, meeting on October 26, approved an interim dividend of Rs 4 per equity share of Rs 2 face value, amounting to 200 percent of the face value.