Birla Corporation Ltd

NCD redemption

• Fully redeemed 2000 Series VI NCDs on maturity date 18 August 2026.
• Aggregate outstanding face value ₹80,00,00,000; original face value ₹10,00,000 per NCD; outstanding ₹4,00,000.
• Interest paid on redemption ₹7,40,00,000.
• Post-redemption outstanding NCDs ₹20 crore under different ISINs; ISIN for redeemed NCDs: INE340A07084.

ESG Rating Disclosure

• ESG rating of 63 assigned by ESG Risk Assessments & Insights Limited.
• Company states it did not engage the rating firm and rated independently.
• Rating based on publicly available information.
• Information received on 17 August 2026 around 10:25 PM IST.
• Information uploaded on Birla Corporation website.
• Disclosure published on 18 August 2026.

GST ITC demand against RCCPL

• RCCPL, a wholly owned Birla Corporation subsidiary, received a demand-cum-show-cause notice.
• The notice concerns alleged wrongful ITC availed for FY 2020-21 and 2022-23.
• The claimed amount is ₹10,30,06,338, plus applicable penalty and interest.
• Intimation was received on 11 August 2026 around 12:57 p.m. IST.
• There is no material impact on RCCPL's finances or operations.
• RCCPL asserts the notice lacks merit and will respond within the timeline.
• RCCPL has previously received a favourable order in a similar matter.

Operational snapshot

• Mukutban volume: 7.5 lakh tons.
• Total lead distance: 335 km.
• Mukutban lead distance: about 400 km.
• KCal cost: INR 1.64.
• Capex for Q1: INR 120 crores.
• Net debt: INR 2,300 crores.
• Incentive accrued: INR 33 crores.
• Packaging cost per ton: INR 269 this quarter.
• Last quarter packaging: INR 191 per ton.
• WHRS capacity: 43-44 MW; target around 50 MW.
• Maihar Line 2 adds 17-18 MW WHRS.
• Kundanganj Line 2 included in INR 4,800 crores capex.
• On track for 25 mt capacity; FY29 target 27.6 mt.

Guidance and outlook

• Capex guidance for the year: INR 900 crores.
• Debt exit guidance around INR 2,000 crores; no change.
• FY28 capex expected to rise to about INR 2,500 crores.
• Full-year EBITDA outlook is too early to comment.
• Bikram coal volumes: 1.2 lakh tons this year.
• Next year volumes: 3.5 lakh tons; one-third CPP via Bikram.
• FY28 capex near INR 2,500 crores.
• Net debt/EBITDA target: 2.5x.
• No deferral of capacity expansion; utilization >90% and growth constrained.
• No price war; focus on trade and blended cement; not shifting to non-trade.

Capex and projects

• Maihar clinker project: EC and pre-project activities ongoing.
• Kundanganj Line 2 included in INR 4,800 crores capex; activity started.
• FY28 capex jump to around INR 2,500 crores.
• Total incentive for Mukutban and Kundanganj: INR 130-135 crores.

Q&A highlights

• Mukutban volume: 7.5 lakh tons; lead distance 335 km.
• Capex for Q1: INR 120 crores; net debt: INR 2,300 crores.
• Incentive accrued: INR 33 crores.
• Q2 cost to rise by INR 70-80 per ton sequentially.
• Realization rose by INR 80 per ton excluding incentives.
• Capex for year: INR 900 crores; on track.
• Incentives total for Kundanganj and Mukutban: INR 130-135 crores.
• Bikram coal: 1.2 lakh tons this year; 3.5 lakh next year.
• One-third CPP coal to be met by Bikram.
• Packaging per ton: INR 269 this quarter; INR 191 last quarter.
• Higher other expenses due to mining and packaging; YoY up 8-9%.

Meeting Details

• Date and time: 25 July 2026, concluded at 4:17 p.m. IST.
• Type and mode: group investor conference call; mode not specified.
• Event/organiser: Investors/Analyst conference call on quarterly results.
• Purpose: discuss unaudited standalone and consolidated results for quarter ended 30 June 2026.
• Recording availability: audio recording available on company website.

Financial highlights

• Revenue for the quarter: Rs 2,669 crore, up 7% YoY.
• Net profit: Rs 116 crore, down 3.3% YoY.
• Realisation per ton: Rs 4,947, up 1.8%.

Operational metrics

• Cement sales by volume: 5.05 mt, up 5% YoY.
• Capacity utilization: 98% in the quarter.
• Trade channel share: 82% of cement sales, up from 78%.

Segment performance and volumes

• Premium cement volume grew 18% YoY.
• RCCPL unit sales: Kundanganj up 26%, Mukutban up 12% YoY.

Outlook and market

• Demand to remain muted till monsoon end; recovery from September with infra spend.
• Realizations expected to be weak near term; further price hikes deferred till monsoons end.

Jute division performance

• Jute division cash profit: Rs 4.28 crore.
• Jute production declined 27% YoY due to raw jute price surge and supply disruptions.
• Domestic jute sales up 18% YoY; overseas up 13% YoY.

Financial results approved

• Standalone unaudited results for quarter ended 30 June 2026 approved.
• Consolidated unaudited results for quarter ended 30 June 2026 approved; eight subsidiaries not reviewed.
• Results accompanied by Limited Review Reports from statutory auditors.
• Standalone: total income 1,466.73 crore; net profit after tax 40.75 crore; EPS 5.29.
• Consolidated: total income 2,646.45 crore; net profit after tax 115.73 crore; EPS 15.03.

Key operational and regulatory items

• Commenced commercial production at Bikram Coal Mine from 22 June 2026.
• ₹100 crore debentures secured by first charge on cement division assets; asset cover 3.22x.
• Exercise of Section 115BAA option; tax liability computed at concessional rates.
• Incentives under WBIS/WBSS: provision of ₹69.29 crore (DHTC) and ₹28.58 crore (DCW) for time value.
• Birla Vinoleum unit closure reclassified from 'Others' to 'Unallocable' segment from 1 April 2026.

Governance and audit disclosures

• Audit Committee reviewed results on 24 July 2026; Board approved on 25 July 2026.
• Consolidated results include disclosures reflecting group structure and segment data.
• Results have been reviewed by statutory auditors.

Meeting Details

• Board meeting on 25 July 2026 to consider standalone and consolidated unaudited results.
• Time and venue for the meeting are not disclosed.

Key Agenda Items

• Approval of standalone and consolidated unaudited financial results for quarter ended 30 June 2026.

Other Notes

• Notice confirms meeting date; no additional items disclosed.

Rating action

• Long-term bank facilities ₹740.44 crore: CARE AA; Stable.
• Long-term/Short-term facilities ₹1,010 crore: CARE AA; Stable / CARE A1+.
• Outlook: Stable.
• Rationale: strong linkage with parent Birla Corporation; capacity expansion to 11.21 MTPA by 2026.
• Capex plans may moderate metrics; gearing improved to 0.93x as of Mar 2026.
• RCCPL contributed ~57% of BCL's consolidated profitability in FY26.
• Sensitivity: Positive if parent’s credit improves; Negative if BCL deteriorates.
• Debt program risk: large capex could push gearing above 3x.
• Material changes since last rating: Outlook unchanged; rating reaffirmed.
• FY26 financials: TOI ₹4,643 crore; PBILDT ₹838.63 crore; PBILDT margin 18.06%.
• Liquidity: Adequate; GCA ₹649 crore; cash ₹56 crore; liquid investments ₹617 crore; repayments ₹440-600 crore FY27-29.