| Dalmia Bharat Green Vision Limited | ||||
| Rating reaffirmed at 'Crisil AA+ / Stable' | ||||
| Rating Action | ||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||
| 1 crore = 10 million | ||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has reaffirmed its ‘Crisil AA+/Stable’ rating on the long-term bank facilities of Dalmia Bharat Green Vision Ltd (DBGVL).
The rating continues to factor in the strong operational, managerial and financial support from the parent, Dalmia Cement (Bharat) Ltd (DCBL; ‘Crisil AA+/Stable/Crisil A1+'), on an ongoing basis. Furthermore, the parent has provided unconditional and irrevocable corporate guarantee for a few bank facilities of the company.
DBGVL is critical to DCBL because of the company’s share of around 12% in the parent’s capacity in the southern region, high operational linkages between the entities and investment of Rs 1,360 crore in the form of equity and unsecured loan by the parent and group companies as on March 31, 2026. Both these entities have common leadership and high managerial integration. DCBL is the fourth-largest cement player (by capacity) in India, with operational capacity of 49.5 million tonne per annum (MTPA). It has a diversified presence with capacities in the east (44% of total capacity), south (34%), northeast (16%) and west (6%).
Under DBGVL, DCBL commissioned a 2.0 MTPA grinding capacity in Sattur, Tamil Nadu, in August 2023 at cost of Rs 686 crore and is in advanced stage of implementing railway siding. The company has ramped up operation in the first nine months of fiscal 2026; utilisation is expected to increase to 60% in fiscal 2026 from 51% in fiscal 2025 and improve to 65-70% over the medium term. Better fixed cost absorption should lead to Ebitda (earnings before interest, tax, depreciation and amortisation) per tonne improving to Rs 550-650 in fiscals 2026 and 2027.
The company is expected to undertake capital expenditure (capex) of Rs 800-900 crore between fiscals 2027-2028 for setting up a greenfield grinding facility of 3 MTPA in Pune and maintenance capex. Owing to the large capex, the financial risk profile of DBGVL will remain modest. |
Analytical Approach Crisil Ratings has considered the standalone business and financial risk profiles of DBGVL.
Also, Crisil Ratings has applied its parent notch-up framework to factor in the support from the parent, DCBL, considering the entities have operational and financial linkages, and common management.
DCBL and Dalmia Bharat Ltd (DBL; ‘Crisil AA+/Stable/Crisil A1+') are together referred to as DCBL in this rating rationale. |
Key Rating Drivers - Strengths Strong support from the parent, DCBL DBGVL is a wholly owned subsidiary of DCBL and receives strong operational, managerial and financial support from the parent. Group had invested Rs 1,360 crore in DBGVL as on March 31, 2026. The management is common with the parent. Furthermore, DCBL has provided unconditional and irrevocable corporate guarantee for some bank facilities of DBGVL. This underscores the strong financial linkages between the parent and the subsidiary. DBGVL has only grinding capacity and its clinker requirement is met through the parent’s Dalmiapuram plant, highlighting their operational linkages. The clinker for the proposed grinding unit in Pune is likely to be sourced from DCBL’s Karnataka plant.
Strategic importance to the parent The satellite grinding unit of DBGVL enables the parent to market its cement in Tamil Nadu and adjacent states. It also enables balancing of capacities at the parent level and rationalisation of cement movement, leading to lower freight cost and realisation of synergy at a consolidated level.
DBGVL augments the market position of DCBL in the southern region. At the consolidated level, the capacity in the southern region increased to 17 MTPA as on December 31, 2025, from 12.1 MTPA as on March 31, 2023, aided by the greenfield plant in DBGVL and completion of brownfield and debottlenecking expansion of 2.9 MTPA. |
Key Rating Drivers - Weaknesses Modest financial risk profile The financial risk profile of DBGVL is modest owing to the large debt-funded capex for commissioning 2 MTPA grinding capacity and railway siding. The company is expected to undertake debt-funded capex of Rs 844 crore over fiscals 2027-2028 to increase grinding capacity by 3 MTPA. The capex is entirely funded through unsecured loan from group companies. However, the company is expected to fund the proposed capex with external debt. Accordingly, the net debt to Ebitda ratio is expected to remain modest and net cash accrual to total debt ratio is expected below 0.1 time over the next two fiscals.
Susceptibility to volatility in input cost and cyclicality in the cement industry Capacity addition in the cement industry tends to be sporadic because of the long gestation period for setting up a facility and numerous players adding capacity during the peak of a cycle. This led to unfavourable price cycles for the sector. Decline in cement prices in fiscal 2025 impacted the profitability of cement players. Moreover, the profitability remains vulnerable to volatility in input prices, including raw material, power, fuel and freight. Realisation and profitability are also affected by demand, supply, offtake and regional factors. |
Liquidity Strong Liquidity is strong and primarily reflects the liquidity of the parent, DCBL.
Cash and equivalent at DCBL, on a consolidated basis, stood at Rs 3,758 crore as on December 31, 2025, and is supported by the investment in Indian Energy Exchange (IEX), valued at Rs 1,293 crore as on that date. DCBL had unutilised fund-based bank limit of Rs 1,169 crore to meet any short-term liquidity mismatch. The net cash accrual of DCBL and surplus liquidity will sufficiently cover debt obligation and equity requirement for the capex. |
Outlook Stable The outlook on the long-term bank facility of DBGVL reflects the rating outlook on the parent.
DCBL will continue to benefit from its strong market position, healthy operating efficiency and comfortable liquidity. |
Rating sensitivity factors Upward factor
Downward factors
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About the Company DBGVL is a wholly owned subsidiary of DCBL and has set up a cement grinding facility with installed capacity of 2 MTPA in Sattur in August 2023. |
About the parent DCBL is the fourth-largest cement manufacturer in the country with installed capacity of 49.5 MT as on December 31, 2025. The company has presence across the east (capacity of 21.6 MTPA), south (17.0 MTPA), northeast (8 MTPA) and west (2.9 MTPA). It also has captive thermal power plants of 212 megawatt (MW), group captive renewable power of 200 MW, solar power plants of 136 MW and a waste heat recovery system of 73 MW.
DBL is the listed holding company of the cement business of the DBL group. It owns 100% stake in DCBL, which is the main operating company and houses the entire cement business of the group. DBL also owns 100% in DPL (non-operational company). At a standalone level, DBL derives revenue by providing management services to group companies.
DPL is a non-operational company. Its assets mainly include a part of the group’s investment in the equity shares of IEX (listed entity).
The investment of the DBL group in IEX was valued Rs 1,293 crore as on December 31, 2025. The group has categorised the investment as non-core and classified it under current assets in the balance sheet. All the group entities have common management and treasury operations.
For fiscal 2025, the operating income of DBL was Rs 13,989 crore, as against Rs 14,702 crore in the previous fiscal. The Ebitda per tonne decreased to Rs 823 in fiscal 2025 from Rs 920 in fiscal 2024, and profit after tax (PAT) stood at Rs 697 crore, compared with Rs 849 crore. |
Key Financial Indicators of DBGVL (standalone; Crisil Ratings-adjusted numbers)
Key financial indicators of DCBL* (consolidated; Crisil Ratings-adjusted numbers)
*Excludes DBL |
Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||
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*This RR was updated on April 28, 2026
Annexure: List of instruments and names of regulators of the instruments As required by SEBI CRA Circular dated Feb 10, 2026, a list of activities or instruments falling under the purview of various FSRs, along with the names of respective FSRs, is being disclosed below:
* Includes securitisation transactions involving assignee payout, acquirer's payout. ~ The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In PRs subsequent to issuance(s), Crisil Ratings Limited shall separately capture the rated quantum details along with names of respective regulators. ^ Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions. # There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. @ These ratings were assigned during regulatory regime prior to introduction of SEBI CRA Circular dated Feb 10, 2026 and the investor side regulators have accordingly been included.
Note: Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
Criteria Details
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