Birla Corporation Share Price Soars 26% in 2 Days After Q4 Results Beat Estimates

Market Performance

Birla Corporation's share price has witnessed a sharp surge of 26.2% in just two trading sessions, driven by strong Q4FY25 earnings.

• The stock jumped 20% on Monday, followed by another 5.2% rise on Tuesday.
• This bullish momentum came after the company reported better-than-expected financial results for the March quarter.

Previously under pressure, the stock had declined 46% from its all-time high of ₹1,802 (February 2024) but has shown a strong recovery in recent months.

• In March, the stock gained 8%,
• So far in May, it's already up 24%.

Q4 Results Spark Rally

Birla Corporation delivered a comprehensive turnaround in Q4FY25, outperforming across all primary metrics:

• Volume: Up 8% YoY
• Revenue: Up 6% YoY
• EBITDA: Up 13% YoY
• Net Profit: Up 33% YoY

The company's net profit rose to ₹257 crore, compared to ₹193 crore in the same period last year.

Additionally, operational efficiency improved significantly:

• Cost per tonne dropped by 4% YoY to ₹4,345
• EBITDA/tonne reached ₹1,017, up 85% QoQ and 4% YoY

Revenue and Profitability Highlights

Revenue

• Strong cement demand contributed to a 6% YoY increase in Q4FY25 revenue.

EBITDA

• EBITDA rose 13% YoY to ₹530 crore.
• Beat consensus estimates by over 30%, according to JM Financial.

EBITDA Margins

• Marked improvement in margins, supported by better realization and lower costs.

Net Profit

• Net profit climbed to ₹257 crore, up 33% YoY.

Company Expansion and Strategy

Birla Corporation has laid out aggressive growth plans to support long-term volume expansion:

• Cement production capacity to be scaled up to 27.6 MTPA by FY29
• Capex outlay of ₹4,330 crore to fund the expansion
• Near-term boost from 1.4 MTPA Kundanganj plant becoming operational in Q2FY26
• Ongoing ramp-up at Mukutban unit to aid further volume gains

In Q4, the company also entered the ready-mix concrete (RMC) business, starting in Uttar Pradesh, with plans to expand the segment and support premium cement sales.

Financial Position and Leadership Update

• Net debt reduced by ₹8,000 crore YoY to ₹22,400 crore
• Leverage has improved, supporting profitability and expansion

Additionally, the board extended the term of Mr. Sandip Ghose, MD & CEO, for another three years from January 26.

Summary

Birla Corporation's impressive Q4FY25 results have ignited a sharp rally in its share price, marking a potential turnaround for the cement major.

With double-digit growth across financial metrics, improving operational efficiency, and firm capacity expansion plans, the company is positioning itself for sustained growth.

The foray into RMC and debt reduction further solidified its strategy, helping restore investor confidence after a year-long slump.