Birla Corporation Stock Hits 20% Upper Circuit After Strong Q4 Numbers and Expansion Greenlight
Birla Corporation’s shares saw a sharp rally on Monday, hitting the 20% upper circuit limit, after the cement manufacturer posted a strong performance in its March quarter earnings and laid out plans for expansion.Birla Corporation reported a net income of ₹256.6 crore for the fourth quarter of FY25, a significant increase from ₹193.3 crore during the same period last year — a rise of nearly 33%. Birla Corporation share price after hitting upper circuit, trading at 1270 at BSE.
The board of Birla Corporation also proposed a final dividend of ₹10 per share for the fiscal year 2024–25. If approved at the upcoming Annual General Meeting, the payout will be made within a month.
Operationally, Birla Corporation demonstrated solid improvements. Earnings before interest, tax, depreciation, and amortization (EBITDA) per tonne reached ₹1,014, one of the highest in recent quarters. This reflects a year-on-year rise of 5% and a 78% increase compared to the previous quarter, suggesting better pricing, demand, and cost efficiency. The company’s cement division posted an operating margin of 20%, compared to 18.6% last year and 14% for the full fiscal year.
Strong operational cash flow also helped the company bring down its net debt to ₹2,244 crore, significantly lower than ₹3,003 crore at the end of FY24.
Despite its stock dropping around 13% over the past 12 months, Birla Corp’s recent financial momentum has shifted sentiment. Technical data indicates a neutral outlook, with its Relative Strength Index (RSI) at 45, suggesting the stock isn’t currently overbought or oversold.
On the revenue front, operating income rose 6.1% year-over-year to ₹2,815 crore, up from ₹2,654 crore. Quarterly EBITDA stood at ₹534 crore, up from ₹472 crore in the previous year’s corresponding quarter. The EBITDA margin expanded to 19%, improving from 17.8%.
The company attributed its improved showing to higher sales volumes, robust demand, and better capacity utilization — which reached 105% in March. While the average realization per tonne dropped slightly to ₹5,103 from ₹5,178, overall consolidated revenue rose 7% year-on-year to ₹2,863 crore.
Looking to scale operations, the board has cleared a capital investment proposal to set up a new cement grinding facility in Gaya, Bihar. This greenfield unit, with a projected capacity of 2.8 million tonnes annually, will be developed in phases.
Additionally, the company plans to raise up to ₹200 crore through the issuance of non-convertible debentures (NCDs) via private placement. The fundraising will remain within the borrowing ceiling approved by shareholders.
The positive earnings surprise and future expansion roadmap sparked a strong market reaction. At the open, Birla Corp shares jumped 20% to ₹1,270.25 on the Bombay Stock Exchange and stayed locked at that level by 9:41 AM. This rally pushed the company’s market cap to ₹9,781 crore.
Birla Corporation – Q4 Consolidated Financial Summary
| Key Metrics | Q4 FY 2024-25 (₹ Cr) | Q4 FY 2023-24 (₹ Cr) |
|---|---|---|
| Revenue from Operations | 2,814.91 | 2,654.44 |
| Other Income | 48.23 | 25.69 |
| Total Income | 2,863.14 | 2,680.13 |
| EBITDA (approx)* | 534.32 | 472.34 |
| Profit Before Tax (PBT) | 328.20 | 273.06 |
| Profit After Tax (PAT) | 256.60 | 193.34 |
| Total Comprehensive Income | 118.76 | 232.95 |
| EPS (Basic & Diluted) | ₹33.32 | ₹25.10 |
| EBITDA Margin | 19% | 17.8% |
| Net Profit Margin | 9.27% | 7.42% |
| Capacity Utilization (March) | 105% | Not disclosed |
| Dividend Announced | ₹10/share (100%) | ₹10/share (100%) |
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