Birla Corporation Ltd witnessed a sharp 20% surge in its stock price on Monday following the announcement of its strong Q4 results, marking a significant recovery in investor sentiment.
Five Factors Driving the Rally
- Robust Earnings Performance – Birla Corp’s net profit jumped 32.8% year-on-year to ₹256.6 crore, up from ₹193.3 crore in the same quarter last year. Revenue from operations rose 6.1% to ₹2,815 crore, while consolidated revenue increased 7% to ₹2,863 crore.
- Improved Operating Margins – The company reported an EBITDA of ₹534 crore, reflecting a 13.1% year-on-year growth. EBITDA margin improved to 19%, up from 17.8% in Q4FY24. Additionally, EBITDA per tonne surged to ₹1,014, marking its highest level in 18 quarters.
- Strong Cement Sales & Realisations – Cement sales volumes rose 8% year-on-year to 5.2 million tonnes, with realisation per tonne improving 7% sequentially to ₹5,103.
- Debt Reduction & Expansion Plans – Birla Corp successfully reduced its net debt to ₹2,244 crore, down from ₹3,003 crore last year. The company also announced a ₹4,330 crore capital expenditure plan to expand cement capacity from 20 MTPA to 27.6 MTPA by FY29, including a greenfield cement grinding unit in Bihar.
- Dividend Announcement & Investor Confidence – The board proposed a final dividend of ₹10 per share (100% of face value) for FY25, further boosting investor sentiment. Analysts remain bullish, with 18 out of 21 analysts maintaining a “buy” rating on the stock.
Following the announcement, Birla Corp shares hit their upper circuit limit of ₹1,268.80, reversing year-to-date losses and pushing the stock into positive territory for 2025.
