Birla Corporation slips after muted Q1 performance
Revenue for the first quarter of FY27 rose by 7.8% year-on-year (YoY) to Rs 2,646.45 crore.
EBITDA fell by 3.6% to Rs 365 crore in Q1 FY27 from Rs 379 crore in Q1 FY26. EBITDA per ton for Q1 FY27 was Rs 675, down 5.6% YoY.
Profit before tax in Q1 FY27 stood at Rs 115.73 crore, down by 3.2% from Rs 119.57 crore in Q1 FY26.
In June 2026 quarter, the company said that it had maintained high capacity utilization of 98% and scaled up cement sales in the June quarter to 5.05 million tons (mt), thanks to sustained gains in the trade segment in States such as Maharashtra, Uttar Pradesh, Bihar and Rajasthan. Cement revenue for the period under review was Rs 2,515.17 crore, up 7.4% YoY.
Cement demand grew moderately in the June quarter, gaining momentum from the second-half of May, thanks largely to Government spending on infrastructure. But cement prices remained under pressure: price hikes introduced in April-May had to be rolled back in June amid intense competition for market share.
Going forward, cement demand is expected to remain muted until the end of the monsoons in August and recover from September, boosted by Government spending and construction activities in the private sector.
Even with energy prices edging upward, further price hikes have been deferred till the end of monsoons, and it is expected that realization will remain weak in the near term. Given the capacity overhang and intense competition among manufacturers, meaningful recovery in cement prices could be expected only in the December quarter.
Birla Jute Mills faced another challenging quarter with raw jute prices shooting to a record high. Coupled with acute shortage, disruption in supply of raw jute forced the division to rationalize production by reducing working days.
Consequently, production during the quarter declined 27% YoY and 8% sequentially. The business has reported revenue of Rs 131.25 crore for Q1 FY27, up 9.2% YoY.
Birla Corporation is the flagship company of the MP Birla Group. The company has interest in cement and jute goods.
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