Cement Products Q2 FY2026 Sector Insights

Cement - Products Sector Analysis: A Deep Dive into BirlaNu Limited's Performance and Strategic Landscape

**Summary:** This comprehensive analysis delves into the "Cement - Products" sector, primarily through the lens of BirlaNu Limited (formerly HIL Limited), a prominent player with a nearly 80-year legacy in home and building solutions. The sector, as evidenced by BirlaNu's performance, is navigating a dynamic and challenging market environment characterized by sluggish demand, soft pricing, and global macroeconomic headwinds. Despite these challenges, BirlaNu demonstrates resilience and strategic agility, focusing on profitability levers, cost discipline, digital transformation, and inorganic growth through acquisitions like Clean Coats Pvt. Limited. The company's Q2 FY26 results show signs of improving profitability, particularly in EBITDA, driven by operational efficiencies and strategic initiatives, even as revenue growth remains modest or negative in some segments. BirlaNu's strong brand portfolio, extensive distribution network, and commitment to innovation and sustainability position it to capitalize on a gradually improving demand landscape, aiming for accelerated growth and enhanced customer engagement.

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A. INDUSTRY OVERVIEW & MARKET LANDSCAPE

The "Cement - Products" sector, as represented by BirlaNu Limited, encompasses a broad range of materials and solutions essential for home and building construction and renovation. This sector is foundational to infrastructure development and housing, directly influenced by economic growth, government spending on infrastructure, and consumer sentiment towards real estate and home improvement.

**Total Addressable Market Size and Growth Rates:** While specific market size figures for the entire "Cement - Products" sector are not provided in the extract, BirlaNu's operations across various product categories offer insights into the market's breadth. The company's vision to be a leading global provider of innovative, sustainable Home & Building solutions, with an implied target of $1 billion in revenue, suggests a substantial and growing addressable market. However, current market conditions, as noted by BirlaNu's management, indicate a challenging environment with "market continuing to provide headwinds" and a "sluggish demand scenario." This suggests that while the long-term potential is significant, short-to-medium term growth rates may be subdued due to prevailing economic conditions. For instance, the Roofs segment experienced an estimated 4-5% decline in market uptake, indicating contraction in specific sub-segments.

**Market Structure and Segmentation (by product, geography, customer type):** BirlaNu's product portfolio provides a clear segmentation of the market: * **Roofs:** Primarily focused on roofing solutions, likely including fiber cement sheets or similar products (e.g., Charminar brand). This segment faced a 5% revenue decline in Q2 FY26 and an estimated 4-5% market uptake decline, suggesting maturity or specific challenges. * **Walls:** Encompasses building blocks and panels (e.g., BirlaNu Aerocon). This segment showed strong growth, with an 18% revenue increase in Q2 FY26, indicating robust demand for modern walling solutions. * **Pipes and Construction Chemicals:** Includes pipes and fittings (e.g., BirlaNu Leakproof Pipes) and construction chemicals. This segment experienced a 6% revenue decline in Q2 FY26, with pipes segment volumes dropping ~9% and revenue declining ~11%, attributed to decadal low resin pricing, extended monsoons, muted government spending, and liquidity challenges. The acquisition of Clean Coats Pvt. Limited significantly expands BirlaNu's presence in high-performance coatings and specialty chemicals, adding 275+ products and unlocking global market access across 27+ countries. This highlights the strategic importance and growth potential of the construction chemicals sub-segment. * **Floors:** Primarily focused on flooring solutions (e.g., Parador brand). This segment demonstrated 11% revenue growth in Q2 FY26, despite facing a "challenging global macroeconomic backdrop" and "subdued consumer sentiment and tariff-related uncertainties." This suggests resilience or strong brand positioning within the flooring market. * **Putty:** BirlaNu Trucolour Putty is another product, indicating a presence in surface preparation materials.

**Geographic Distribution and Regional Dynamics:** BirlaNu operates globally, with 33 manufacturing facilities across India, Germany, and Austria, and a global sales presence across 80+ countries. This indicates a diversified geographic footprint. * **India:** The Indian market faces "soft pricing across all product categories (3-7% decline for products in India)" and "sluggish demand scenario." However, the India Walls segment showed strong volume growth and revenue increase. The Pipes segment in India was particularly affected by monsoons, government spending, and liquidity issues. * **International (e.g., Parador in Europe):** The Floors segment (Parador) operates in a "challenging global macroeconomic backdrop" with "subdued consumer sentiment and tariff-related uncertainties." Despite this, Parador achieved 11% YOY revenue growth and a significant 720 bps improvement in operating margins, suggesting effective strategic management in a tough environment. The acquisition of Clean Coats further expands BirlaNu's global market access in construction chemicals to 27+ countries.

**Key End Markets and Applications:** The products cater to a wide array of end markets: * **Residential Construction:** Roofing, walling, flooring, pipes, and construction chemicals are fundamental to new home construction and renovation. * **Commercial Construction:** Similar products are used in commercial buildings, offices, and retail spaces. * **Infrastructure Projects:** Pipes and construction chemicals are crucial for public infrastructure, water management, and specialized construction. * **Industrial Applications:** Specialty chemicals and coatings can have industrial uses beyond traditional building. * **Renovation and Repair:** Many products serve the aftermarket for maintenance, repair, and overhaul (MRO).

**Market Maturity and Lifecycle Stage:** The sector appears to be in a mature stage for traditional products like roofs, where market uptake is declining. However, segments like walls (with strong growth) and construction chemicals (with strategic acquisition and high-value potential) suggest growth opportunities and innovation-driven expansion. The focus on "eco-friendly building materials" and "innovative launches" indicates a shift towards sustainability and value-added products, pushing certain sub-segments into growth or early maturity phases. Digital transformation initiatives also point to an industry adapting to modern business practices and customer engagement.

**Industry Value Chain and Ecosystem:** The value chain involves: 1. **Raw Material Sourcing:** Inputs like cement, fibers, resins, chemicals, and wood (for flooring) are procured. 2. **Manufacturing:** Production at facilities like BirlaNu's 33 plants. 3. **Distribution:** Extensive networks are crucial, with BirlaNu boasting 30,000+ retail points and 21k+ channel partners worldwide. 4. **Sales & Marketing:** Brand building (Charminar, BirlaNu Aerocon, BirlaNu Leakproof Pipes, Topline, Parador) and digital engagement are key. 5. **Application/Installation:** Often involves skilled labor (plumbers, painters, applicators), which BirlaNu supports through skill development programs (targeting 8500+ this year). 6. **End-Users:** Homeowners, builders, contractors, and industrial clients.

The ecosystem also includes technology providers for digitalization, innovation hubs for R&D, and regulatory bodies for certifications (GRIHA, IGBC, GreenPro) and compliance.

B. FINANCIAL & ECONOMIC PROFILE

This section focuses on the financial performance of BirlaNu Limited, providing insights into the economic profile of a leading player in the Cement - Products sector. The data covers Q2 and H1 FY26, with comparisons to FY25.

**Industry Aggregate Revenue Scale and Growth Trajectory (BirlaNu Specific):** BirlaNu, as a global leader, provides a proxy for the scale within the sector. * **Q2 FY26 Consolidated Revenue:** INR 810 Cr, showing a modest 5% YOY growth from INR 774 Cr in Q2 FY25. This indicates some revenue expansion despite market headwinds. * **H1 FY26 Consolidated Revenue:** INR 1,862 Cr, reflecting a slight (1)% YOY decline from INR 1,881 Cr in H1 FY25. This suggests that the first half of the fiscal year was challenging, with Q1 likely experiencing more significant revenue pressures that offset Q2's growth. * **Q2 FY26 Standalone Revenue:** INR 479 Cr, a (1)% YOY decline from INR 481 Cr in Q2 FY25. * **H1 FY26 Standalone Revenue:** INR 1,206 Cr, a (4)% YOY decline from INR 1,256 Cr in H1 FY25. The standalone figures, which exclude subsidiaries, show a more pronounced revenue contraction, implying that consolidated growth was partly supported by subsidiary performance (e.g., Parador's 11% growth in Floors).

**Profitability Levels Across Companies (BirlaNu Specific):** BirlaNu's profitability metrics show a significant turnaround in Q2 FY26, driven by strategic initiatives and cost discipline, despite revenue challenges. * **Q2 FY26 Consolidated EBITDA:** INR 4 Cr, a remarkable 118% YOY growth from INR -22 Cr in Q2 FY25. This represents a substantial improvement from a negative EBITDA position, indicating effective cost management and operational leverage. The MD & CEO noted a 330 bps EBITDA expansion YOY in Q2. * **H1 FY26 Consolidated EBITDA:** INR 63 Cr, a 20% YOY growth from INR 52 Cr in H1 FY25. This sustained growth in EBITDA for the half-year period underscores the positive impact of profitability levers. * **Q2 FY26 Consolidated PBT:** INR -49 Cr, a 36% YOY growth from INR -76 Cr in Q2 FY25 (excluding non-operating income). While still negative, the reduction in loss is a positive sign. * **Q2 FY26 Consolidated PAT:** INR -43 Cr, a 24% YOY growth from INR -56 Cr in Q2 FY25 (excluding non-operating income). Similar to PBT, the net loss has significantly narrowed. * **H1 FY26 Consolidated PBT:** INR -44 Cr, a 20% YOY growth from INR -54 Cr in H1 FY25 (excluding non-operating income). * **H1 FY26 Consolidated PAT:** INR -44 Cr, a (1)% YOY growth from INR -44 Cr in H1 FY25 (excluding non-operating income). The PAT for H1 FY26 remained flat YOY, indicating that while PBT improved, other factors (like tax adjustments or non-operating items) might have influenced the final PAT.

**Segment-wise Profitability (Q2 FY26 PBT):** * **Roofs:** INR 13 Cr PBT (49% growth from INR 9 Cr in Q2 FY25). This segment showed strong PBT growth despite revenue decline, suggesting improved efficiency or cost control. EBITDA expansion of 180 bps was noted. * **Walls:** INR 10 Cr PBT (50% growth from INR 7 Cr in Q2 FY25). This segment showed strong PBT growth, aligning with its revenue growth. Operating margins expanded by 110 bps. * **Pipes and Construction Chemicals:** INR -13 Cr PBT (17% growth from INR -15 Cr in Q2 FY25). While still negative, the loss reduced, with a 110 bps EBITDA improvement. * **Floors:** INR -29 Cr PBT (40% growth from INR -48 Cr in Q2 FY25). This segment significantly reduced its losses, with operating margins improving by 720 bps, indicating successful restructuring and cost discipline (Parador).

**Return Profiles (ROCE, ROE, ROIC) by company:** Specific ROCE, ROE, or ROIC figures are not provided. However, the improvement in PBT and PAT, even from negative territory, suggests a positive trend towards better returns on capital. The focus on "profitability levers" and "value enhancement exercise with BCG" indicates a strategic drive to improve these return metrics.

**Working Capital Characteristics and Cash Conversion Cycles:** While detailed working capital metrics are not explicitly stated, the balance sheet data provides some clues: * **Standalone Current Assets:** INR 632 Cr (30.09.2025) vs INR 669 Cr (31.03.2025) - a decrease. * **Standalone Current Liabilities:** INR 612 Cr (30.09.2025) vs INR 643 Cr (31.03.2025) - a decrease. * **Consolidated Current Assets:** INR 1,090 Cr (30.09.2025) vs INR 1,107 Cr (31.03.2025) - a slight decrease. * **Consolidated Current Liabilities:** INR 1,206 Cr (30.09.2025) vs INR 1,136 Cr (31.03.2025) - an increase. The decrease in standalone current assets and liabilities might suggest some working capital optimization. However, the increase in consolidated current liabilities could be due to various factors, including increased payables or short-term borrowings, which would need further investigation to understand the cash conversion cycle. The acquisition of Clean Coats (INR 110.19 Cr consideration) would also impact cash flows and potentially working capital.

**Capital Intensity Requirements:** The sector appears to be capital-intensive, given BirlaNu's 33 manufacturing facilities and ongoing green-field projects (e.g., new OPVC facility in Patna, Designer Boards facility in AP). The non-current assets on the balance sheet reflect this: * **Standalone Non-current Assets:** INR 1,365 Cr (30.09.2025) vs INR 1,360 Cr (31.03.2025) - a slight increase. * **Consolidated Non-current Assets:** INR 1,875 Cr (30.09.2025) vs INR 1,819 Cr (31.03.2025) - a notable increase, likely reflecting investments in new facilities, capacity expansion, and the Clean Coats acquisition. This indicates continuous investment in fixed assets is required for growth and maintaining competitive edge.

**Revenue Quality (recurring vs one-time, contract length):** The nature of building materials suggests a mix of project-based (one-time for large constructions) and recurring (for ongoing renovations, smaller projects, and retail sales). The extensive distribution network and focus on customer engagement imply a strategy to foster recurring demand through brand loyalty and widespread availability. The acquisition of Clean Coats, adding 275+ products, could diversify revenue streams and potentially increase recurring sales through a broader product offering.

C. COMPETITIVE STRUCTURE & DYNAMICS

The "Cement - Products" sector is characterized by a mix of established players and regional specialists. BirlaNu Limited, with its long history and diverse portfolio, stands out as a significant competitor.

**Number of Players and Market Concentration:** While specific numbers for the entire sector are not provided, BirlaNu's status as a "global leader in home and building solutions" and its extensive network (30,000+ retail points, 21k+ channel partners, 80+ countries) suggest a fragmented market with a few dominant players. The presence of strong regional brands and local manufacturers would also contribute to the competitive landscape. The acquisition of Clean Coats indicates a strategy to consolidate and expand market share in specific, high-growth sub-segments like construction chemicals.

**Market Share Distribution (with specific percentages):** No specific market share percentages are provided for BirlaNu or its competitors. However, BirlaNu's installed capacities (Roofs: 1.1 million MT, Walls Blocks: 1.3 million CuM, Walls Boards & Panels: 2.3 lakh MT, Pipes & Fittings: 100k+ MTPA, Putty: 250k+ MTPA, Floors: 15 million SQM) indicate substantial production capabilities across its segments, suggesting a significant share in its operating markets.

**Competitive Intensity Assessment (Porter's 5 Forces style) - Inferred from BirlaNu's data:** * **Threat of New Entrants (Moderate to High):** While the capital intensity (33 manufacturing facilities, greenfield projects) and extensive distribution network (30,000+ retail points) act as barriers, certain sub-segments like specialty chemicals might have lower entry barriers for niche players. BirlaNu's focus on innovation and eco-friendly materials could also attract new entrants with specialized technologies. * **Bargaining Power of Buyers (High):** The "soft pricing across all product categories (3-7% decline for products in India)" and "lower realizations" in the Roofs segment indicate that buyers have significant pricing power. This is exacerbated by a "sluggish demand scenario" and "muted government spending," forcing companies to compete on price. * **Bargaining Power of Suppliers (Moderate):** Decadal low resin pricing (Pipes segment) suggests that for some raw materials, suppliers might have lower bargaining power currently. However, for specialized chemicals or high-quality inputs, supplier power could be higher. * **Threat of Substitute Products (Moderate):** The sector constantly evolves with new materials and construction techniques. BirlaNu's focus on "eco-friendly building materials" and "innovative launches" is a proactive measure against potential substitutes. For example, different types of roofing or walling materials can substitute each other. * **Rivalry Among Existing Competitors (High):** The "market continuing to provide headwinds" and the need for "relentless sales push" point to intense competition. Companies are likely vying for market share in a challenging demand environment, leading to pricing pressures. BirlaNu's strategic initiatives like digital transformation and customer engagement are aimed at strengthening its position amidst this rivalry.

**Entry Barriers and Competitive Moats:** * **Brand Recognition:** Strong brands like Charminar, BirlaNu Aerocon, BirlaNu Leakproof Pipes, Topline, and Parador, coupled with a nearly 80-year legacy, create significant brand loyalty and trust. BirlaNu is recognized as a Superbrand 2025 and Most Trusted BRANDS of India 2024-2025. * **Extensive Distribution Network:** 30,000+ retail points and 21k+ channel partners globally are a formidable barrier for new entrants and a key competitive advantage. * **Manufacturing Scale and Efficiency:** 33 manufacturing facilities and significant installed capacities provide economies of scale and cost advantages. * **Product Innovation & Diversification:** Continuous innovation, focus on eco-friendly materials, and a broad product portfolio (Roofs, Walls, Pipes, Floors, Putty, Coatings, Specialty Chemicals) reduce reliance on single product lines and cater to diverse customer needs. * **Global Presence:** Sales across 80+ countries and manufacturing in India, Germany, and Austria provide geographic diversification and access to different markets. * **Talent & Culture:** A 5,000+ strong workforce with a high employee engagement score (94) and recognition as a "Best Workplace" indicates a strong organizational foundation.

**Pricing Power Dynamics and Pricing Trends:** The sector currently faces significant pricing pressure. BirlaNu reported "soft pricing across all product categories (3-7% decline for products in India)." This indicates that companies have limited pricing power due to sluggish demand and intense competition. Lower realizations were also noted in the Roofs segment. This trend suggests a buyer's market, where cost efficiency and value proposition become paramount for maintaining profitability.

**Differentiation Strategies Employed:** BirlaNu employs several differentiation strategies: * **Brand Strength:** Leveraging established and trusted brands. * **Product Innovation:** Focus on "innovative launches" and "eco-friendly building materials." * **Sustainability:** Holding certifications like GRIHA, IGBC, GreenPro, appealing to environmentally conscious customers. * **Global Reach:** Offering solutions across diverse geographies. * **Integrated Solutions:** Providing a comprehensive range of home and building solutions, from roofs to floors and chemicals. * **Digital Transformation:** Enhancing customer engagement and operational efficiency through digitalization. * **Customer & Channel Partner Engagement:** Connecting with 10,000+ retailers and 15,000+ influencers, and skill development for applicators.

**Consolidation Trends and M&A Activity:** BirlaNu's 100% acquisition of Clean Coats Pvt. Limited for INR 110.19 Cr (enterprise value INR 92.5 Cr) is a clear example of consolidation and strategic M&A activity within the sector. This acquisition adds 275+ products in high-performance coatings and specialty chemicals, unlocking global market access. This move suggests that companies are looking to grow inorganically, diversify their product offerings, and strengthen their position in high-growth niches. This trend could continue as players seek to gain scale, expand capabilities, and achieve synergies.

**Competitive Advantages of Each Player (BirlaNu Specific):** BirlaNu's competitive advantages are multifaceted: * **Legacy and Trust:** Nearly 80 years of experience (since 1946) and association with the US$ ~3 billion CKA Birla Group (165+ years legacy) instill significant trust. * **Comprehensive Portfolio:** A wide range of products across roofs, walls, pipes, construction chemicals, and floors. * **Global Footprint:** Manufacturing and sales presence across multiple continents and 80+ countries. * **Robust Distribution:** One of the most extensive networks in the industry. * **Innovation & R&D:** 3 innovation hubs and a focus on new product development and eco-friendly solutions. * **Operational Excellence:** Digitalization of core systems, platform development, and data analytics to drive efficiency. * **Strong Human Capital:** A large, engaged, and diverse workforce recognized for its management and workplace culture.

D. OPERATIONAL CHARACTERISTICS

BirlaNu Limited's operational characteristics highlight its scale, manufacturing capabilities, and strategic focus on efficiency and innovation.

**Capacity and Utilization Trends Across Companies (BirlaNu Specific):** BirlaNu possesses substantial installed capacities across its key product segments: * **Roofs (Charminar):** 1.1 million MT * **Walls (BirlaNu Aerocon):** Blocks 1.3 million CuM, Boards & Panels 2.3 lakh MT * **Pipes & Fittings (BirlaNu Leakproof Pipes):** 100k+ MTPA * **Putty (BirlaNu Trucolour Putty):** 250k+ MTPA * **Floors (Parador):** 15 million SQM

While specific utilization rates are not provided, the "sluggish demand scenario" and "soft pricing" across categories suggest that utilization might be below optimal levels in some segments, contributing to the pressure on profitability. However, the strong volume growth in the India Walls segment implies higher utilization for those specific product lines. The new OPVC facility in Patna and the green-field project in AP indicate ongoing capacity expansion, anticipating future demand growth and strengthening market position. This suggests a long-term view on capacity planning, even amidst current headwinds.

**Production Economics and Cost Structures:** The improvement in EBITDA margins despite revenue challenges points to effective cost management and favorable production economics in certain areas. * **Cost Discipline:** "Sustained cost discipline" is explicitly mentioned as a driver for profitability improvement, particularly for Parador (Floors segment), which saw a 720 bps improvement in operating margins. * **Raw Material Costs:** "Decadal low resin pricing" in the Pipes segment, while impacting realizations, could also offer cost advantages if managed effectively. However, the overall "soft pricing" environment suggests that raw material cost benefits might be passed on to customers or offset by other cost pressures. * **Operational Efficiency:** The "comprehensive value enhancement exercise with BCG" signifies a strategic focus on optimizing cost structures and improving operational efficiency across the board. Digitalization of key operations (core systems, platform development, data layer enhancement, analytics) is a critical initiative aimed at enhancing efficiency and reducing operational costs.

**Supply Chain Structure and Dependencies:** BirlaNu's global footprint (manufacturing in India, Germany, Austria; sales in 80+ countries) implies a complex and diversified supply chain. * **Raw Material Sourcing:** Likely involves both domestic and international suppliers, depending on the product and location of manufacturing. * **Logistics:** An extensive network is required to move products from 33 manufacturing facilities to 30,000+ retail points and 21k+ channel partners worldwide. * **Vulnerabilities:** The mention of "extended monsoons" impacting the Pipes segment highlights regional supply chain vulnerabilities, particularly those dependent on weather-sensitive logistics or seasonal demand. Global macroeconomic backdrops and tariff-related uncertainties (Parador) also indicate potential disruptions or cost impacts on international supply chains.

**Technology Landscape and Innovation Pace:** BirlaNu places a strong emphasis on technology and innovation: * **Digital Transformation:** A core strategic initiative, focusing on "Customer Focused, Innovation, Excellence, Sustainability, Technology and People as key drivers." This includes core systems digitalization, platform development, data layer enhancement, and analytics. * **Innovation Hubs:** The company operates 3 innovation hubs, underscoring its commitment to R&D and new product development. * **Product Innovation:** "Several innovative launches across categories planned for the remainder of the year" and a focus on "developing eco-friendly building materials" demonstrate a proactive approach to staying competitive and meeting evolving market demands. * **Digital Footprint Expansion:** Significant investment in digital marketing and customer engagement, with 59.5M+ views & interactions, 25.8M+ reach, and growing follower counts across social media platforms. This indicates leveraging technology for market reach and brand building.

**Operational Efficiency Benchmarks:** While specific benchmarks are not provided, the significant YOY EBITDA growth (118% consolidated Q2, 20% consolidated H1) and margin expansion in various segments (330 bps consolidated Q2, 720 bps for Parador, 110 bps for India Walls, 110 bps for Pipes and Construction Chemicals, 180 bps for Roofs) serve as internal benchmarks for improved operational efficiency. The "value enhancement exercise with BCG" is a clear indication of a drive towards achieving best-in-class operational efficiency.

**Key Performance Indicators (company-specific and industry averages):** BirlaNu tracks various KPIs: * **Financial:** Revenue, EBITDA, PBT, PAT, segment-wise performance. * **Operational:** Capacity utilization (implied by volume growth/decline), cost of goods sold (implied by margin improvements), manufacturing efficiency. * **Market & Sales:** Retail points, channel partners, global sales presence, volume growth (e.g., India Walls), market uptake (e.g., Roofs). * **Innovation:** Number of innovative launches, R&D spend (implied by innovation hubs). * **Digital Engagement:** Views, reach, follower/subscriber counts, website visitors. * **Human Capital:** Employee engagement score (94), training hours (5,100+ till Q2), number of people trained (480+ till Q2). * **Sustainability:** Certifications (GRIHA, IGBC, GreenPro). * **CSR:** Beneficiaries reached in mental health and skill development programs.

**Asset Efficiency Metrics:** The balance sheet shows an increase in non-current assets (INR 1,875 Cr consolidated as of 30.09.2025 vs INR 1,819 Cr as of 31.03.2025), reflecting capital investments. To assess asset efficiency, metrics like Asset Turnover Ratio would be needed, which are not explicitly provided. However, the management's focus on profitability and value enhancement suggests an underlying drive to improve returns from these assets.

E. GROWTH DYNAMICS & DRIVERS

The growth dynamics of the "Cement - Products" sector, as observed through BirlaNu Limited, present a mixed picture of challenges and strategic opportunities.

**Historical Growth Trajectory (3-5 year view with specific rates):** Specific historical growth rates beyond the current and previous fiscal year are not provided. However, BirlaNu's nearly 80-year legacy (since 1946) and its evolution into a "global leader" imply a strong historical growth trajectory. The recent performance indicates a period of deceleration or even contraction in some areas, with H1 FY26 consolidated revenue showing a (1)% YOY decline. This suggests that the current market environment is more challenging than previous periods.

**Current Growth Rates and Acceleration/Deceleration:** * **Consolidated Revenue:** Q2 FY26 saw 5% YOY growth, an acceleration from the H1 FY26 (1)% YOY decline. This indicates a sequential improvement in revenue performance. * **Standalone Revenue:** Q2 FY26 saw (1)% YOY decline, while H1 FY26 saw (4)% YOY decline, indicating continued deceleration or contraction at the standalone level. * **EBITDA:** Consolidated EBITDA showed significant acceleration, with 118% YOY growth in Q2 FY26 and 20% YOY growth in H1 FY26, indicating strong profitability recovery. * **Segment-wise:** * **Roofs:** (5)% decline in Q2 FY26 revenue, indicating deceleration. * **Walls:** 18% growth in Q2 FY26 revenue, showing strong acceleration. * **Pipes and Construction Chemicals:** (6)% decline in Q2 FY26 revenue, indicating deceleration. * **Floors:** 11% growth in Q2 FY26 revenue, showing acceleration despite global headwinds.

**Volume vs Price Contribution to Growth:** * **Volume:** Strong volume growth was observed in the India Walls segment, contributing significantly to its 18%+ revenue growth. Conversely, Pipes segment volumes dropped ~9%, contributing to its revenue decline. The Roofs segment also saw an estimated 4-5% decline in market uptake, implying volume contraction. * **Price:** "Soft pricing across all product categories (3-7% decline for products in India)" indicates that pricing has been a headwind, negatively impacting revenue growth and realizations. Lower realizations were specifically noted in the Roofs segment. Overall, in the current environment, volume growth is a mixed bag across segments, while pricing is generally a negative contributor to revenue growth. Profitability improvements are therefore more attributable to cost discipline and operational efficiency rather than pricing power.

**Organic vs Inorganic Growth Components:** * **Organic Growth:** Driven by "relentless sales push," "strong volume growth" (e.g., India Walls), "innovative launches," and expansion of existing facilities (new OPVC facility in Patna, green-field project in AP). The 11% growth in Parador (Floors) is also organic, driven by restructuring and cost discipline. * **Inorganic Growth:** The 100% acquisition of Clean Coats Pvt. Limited for INR 110.19 Cr is a significant inorganic growth driver. This acquisition immediately adds 275+ products and unlocks global market access, contributing to revenue diversification and future growth in the high-value Construction Chemicals segment. It is expected to be "margin accretive from day one."

**Geographic Expansion Opportunities and Progress:** * **Global Presence:** BirlaNu already has a global sales presence across 80+ countries and manufacturing in India, Germany, and Austria. * **Acquisition-led Expansion:** The Clean Coats acquisition "unlocks global market access across 27+ countries" for high-performance coatings and specialty chemicals, representing a significant geographic expansion in a new product category. * **Domestic Expansion:** New manufacturing facilities in Patna (OPVC) and Andhra Pradesh (Designer Boards) indicate continued domestic geographic expansion and market penetration.

**Product/Service Innovation Pipeline:** * **Planned Launches:** "Several innovative launches across categories planned for the remainder of the year" highlight a robust innovation pipeline. * **Eco-friendly Materials:** A strategic focus on "developing eco-friendly building materials" aligns with global sustainability trends and opens new market opportunities. * **New Product Categories:** The green-field project in AP to produce "Designer Boards and other products" indicates diversification into new product categories. * **Acquisition-driven Product Expansion:** Clean Coats adds 275+ products in high-performance coatings and specialty chemicals, significantly expanding BirlaNu's product portfolio.

**Adjacent Market Opportunities:** * **Construction Chemicals & Coatings:** The acquisition of Clean Coats firmly positions BirlaNu in the "fast-growing, high-value Construction Chemicals segment," which is an adjacent market with significant potential. * **Specialty Chemicals:** The addition of specialty chemicals through Clean Coats further diversifies BirlaNu into higher-margin, specialized industrial and building applications. * **Digital Solutions:** Digitalization efforts, including platform development and data analytics, could lead to new service offerings or enhanced customer experiences, creating value in adjacent digital spaces.

**Customer Acquisition and Penetration Trends:** * **Extensive Network:** BirlaNu's 30,000+ retail points and 21k+ channel partners are crucial for broad market penetration. * **Digital Engagement:** Expanding digital footprint with 59.5M+ views & interactions and 25.8M+ reach aims to acquire new customers and deepen engagement. Growing social media followers (Instagram 9,691, Facebook 53K, YouTube 4K, LinkedIn 50K) indicates successful digital outreach. * **Influencer & Retailer Connection:** Connecting with 10,000+ retailers and 15,000+ influencers directly supports customer acquisition and market penetration. * **Skill Development:** Training 8500+ plumbers, painters, and applicators this year (1,265 covered till Q2) not only supports the ecosystem but also ensures proper application of products, enhancing customer satisfaction and repeat business.

F. RISK LANDSCAPE

The "Cement - Products" sector, and BirlaNu Limited specifically, faces a multitude of risks stemming from macroeconomic factors, market dynamics, and operational challenges.

**Industry-wide Systematic Risks:** * **Economic Downturns:** The sector is highly sensitive to the overall economic health. A "sluggish demand scenario" and "market continuing to provide headwinds" directly reflect broader economic challenges. * **Inflation/Deflation:** While "soft pricing" indicates deflationary pressure on realizations, input cost inflation could squeeze margins. "Decadal low resin pricing" for pipes is currently a benefit but could reverse. * **Interest Rate Fluctuations:** Higher interest rates can impact construction activity by increasing borrowing costs for developers and homebuyers, thus dampening demand. * **Geopolitical Instability:** Global sales presence across 80+ countries and manufacturing in multiple regions expose BirlaNu to geopolitical risks, trade tensions, and supply chain disruptions. "Tariff-related uncertainties" for Parador highlight this.

**Cyclicality and Economic Sensitivity:** The construction sector is inherently cyclical, closely tied to economic cycles. * **Housing Market:** Demand for building materials is directly linked to new housing starts and renovation activity. * **Infrastructure Spending:** Government spending on infrastructure projects is a significant driver, and "muted government spending" (Pipes segment) poses a risk. * **Consumer Sentiment:** "Subdued consumer sentiment" (Parador) directly impacts discretionary spending on home improvement and new purchases.

**Regulatory and Policy Risks by Geography:** * **Environmental Regulations:** Increasing focus on "eco-friendly building materials" implies evolving environmental regulations. While BirlaNu is proactive with certifications (GRIHA, IGBC, GreenPro), stricter norms could increase compliance costs or require significant R&D investments. * **Building Codes:** Changes in building codes and standards can necessitate product redesigns or new certifications. * **Trade Policies:** Tariffs and trade barriers (mentioned for Parador) can impact international operations, increasing costs or limiting market access.

**Technology Disruption Threats:** * **New Materials:** Emergence of entirely new, superior, or significantly cheaper building materials could disrupt existing product lines. BirlaNu mitigates this by focusing on innovation and R&D. * **Construction Techniques:** Advances in modular construction, 3D printing, or other innovative building methods could alter demand for traditional products. * **Digitalization:** While BirlaNu is embracing digital transformation, failure to keep pace with technological advancements in manufacturing, logistics, or customer engagement could lead to competitive disadvantage.

**ESG and Sustainability Challenges:** * **Environmental Impact:** Manufacturing building materials can be energy-intensive and generate waste. Pressure to reduce carbon footprint, water usage, and waste generation is increasing. BirlaNu's focus on sustainability (Greenpro award) is a positive, but ongoing compliance and investment are required. * **Social Responsibility:** Labor practices, community engagement (CSR initiatives like Live Love Laugh Foundation, Skill Development), and supply chain ethics are under scrutiny. * **Governance:** Adherence to high corporate governance standards is crucial for investor confidence.

**Supply Chain Vulnerabilities:** * **Raw Material Price Volatility:** Fluctuations in prices of key raw materials (e.g., resins, cement, fibers) can impact cost structures and profitability. * **Logistics Disruptions:** Natural disasters ("extended monsoons" impacting Pipes), geopolitical events, or infrastructure failures can disrupt the movement of raw materials and finished goods. * **Supplier Concentration:** Over-reliance on a few suppliers could create risks if those suppliers face issues.

**Competitive Threats (new entrants, substitutes):** * **Intense Competition:** "Soft pricing" and "relentless sales push" indicate high competitive intensity. * **New Entrants:** Niche players with innovative products or business models could challenge established players. * **Substitutes:** Alternative materials or construction methods can erode demand for existing products. * **Market Share Erosion:** Aggressive strategies by competitors could lead to loss of market share, especially in a sluggish demand environment.

**Customer Concentration Risks:** While not explicitly mentioned, if a significant portion of revenue comes from a few large contractors or government projects, changes in their purchasing patterns or project cancellations could pose a risk. BirlaNu's extensive retail network suggests a diversified customer base, mitigating this risk to some extent.

G. CAPITAL ALLOCATION & INVESTOR RETURNS

BirlaNu Limited's capital allocation strategy reflects a balance between organic growth, strategic acquisitions, and operational efficiency improvements, all aimed at enhancing shareholder value.

**Capex Trends and Requirements (growth vs maintenance):** * **Growth Capex:** * **Acquisition:** The 100% acquisition of Clean Coats Pvt. Limited for a total consideration of INR 110.19 Cr (enterprise value INR 92.5 Cr) is a significant growth capital allocation. This move is strategic, aiming to enter the "fast-growing, high-value Construction Chemicals segment" and unlock global market access. It is expected to be "margin accretive from day one." * **New Facilities:** Investment in a "New OPVC facility in Patna" and an "Ambitious green-field project in AP to produce Designer Boards and other products" indicates ongoing capital expenditure for capacity expansion and diversification into new product lines. These are clear examples of growth-oriented capex. * **Maintenance Capex:** While not explicitly detailed, with 33 manufacturing facilities, there would be ongoing maintenance capex requirements to ensure operational continuity and efficiency. * **Balance Sheet Reflection:** The increase in consolidated non-current assets from INR 1,819 Cr (31.03.2025) to INR 1,875 Cr (30.09.2025) reflects these capital investments, including the Clean Coats acquisition and new facility developments.

**R&D Investment Levels as % of Revenue:** Specific R&D expenditure as a percentage of revenue is not provided. However, the presence of "3 Innovation hubs" and a stated focus on "Product Innovation" and "developing eco-friendly building materials" strongly implies significant ongoing investment in R&D. This investment is crucial for maintaining a competitive edge, launching "several innovative launches across categories," and adapting to evolving market demands for sustainable solutions.

**Dividend Policies and Payout Ratios:** No information regarding dividend policies or payout ratios is provided in the extracted data.

**Share Buyback Programs:** No information regarding share buyback programs is provided.

**M&A Activity and Strategy:** * **Strategic Acquisition:** The acquisition of Clean Coats is a key M&A activity. The strategy behind this acquisition is clear: * **Product Diversification:** Adds 275+ products in high-performance coatings and specialty chemicals. * **Market Entry/Expansion:** Entry into the high-value Construction Chemicals segment. * **Geographic Reach:** Unlocks global market access across 27+ countries. * **Profitability:** Expected to be margin accretive from day one. This indicates a strategy of inorganic growth to complement organic efforts, targeting high-growth, high-margin segments.

**Cash Generation and Free Cash Flow Profiles:** * **EBITDA Growth:** The significant YOY EBITDA growth (118% in Q2 FY26 consolidated, 20% in H1 FY26 consolidated) suggests improving operational cash generation. * **PBT/PAT:** While PBT and PAT are still negative at the consolidated level, the reduction in losses indicates a positive trend towards improved net cash flow from operations. * **Working Capital:** Changes in current assets and liabilities (as discussed in Section B) would impact cash flow from operations. The decrease in standalone current assets and liabilities might indicate some working capital efficiency, while the increase in consolidated current liabilities needs further analysis. * **Free Cash Flow:** Without detailed cash flow statements, it's difficult to ascertain free cash flow. However, the ongoing capex for new facilities and acquisitions implies significant cash outflows for investing activities. The management's focus on "profitability levers" and "value enhancement" is ultimately aimed at improving cash generation and free cash flow.

**Capital Efficiency Improvements:** * **Profitability Initiatives:** The "comprehensive value enhancement exercise with BCG" is a direct effort to improve capital efficiency by optimizing operations, cost structures, and asset utilization. * **Margin Expansion:** The substantial improvement in EBITDA margins across various segments (e.g., 720 bps for Parador, 180 bps for Roofs) demonstrates improved efficiency in converting revenue into operating profit, which is a key aspect of capital efficiency. * **Strategic Acquisitions:** Acquiring margin-accretive businesses like Clean Coats is a way to deploy capital efficiently to generate higher returns. * **Digital Transformation:** Digitalizing operations is expected to lead to better resource utilization, reduced waste, and improved productivity, thereby enhancing capital efficiency.

H. FUTURE OUTLOOK & PROJECTIONS

The future outlook for the "Cement - Products" sector, as articulated by BirlaNu Limited's management, is cautiously optimistic, balancing current market challenges with strategic initiatives for long-term growth and profitability.

**Industry Growth Projections (with timeframes):** While specific industry-wide growth projections are not provided, BirlaNu's management anticipates a "gradually improving demand landscape." This suggests an expectation of a recovery from the current "sluggish demand scenario" and "market continuing to provide headwinds." The focus on "accelerate growth across categories" implies an internal projection for increased market share and overall revenue expansion as conditions improve. The implied target of $1 billion in revenue for BirlaNu suggests a significant growth ambition, likely over a medium-term horizon.

**Management Guidance Across Companies (BirlaNu Specific):** BirlaNu's management provides clear guidance and a positive outlook: * **Profitability Improvement:** "We are confident of further improvements in profitability, with the many initiatives underway." This is a strong statement, reinforced by the "comprehensive value enhancement exercise with BCG." * **Market Navigation:** "BirlaNu is well positioned to maintain momentum and navigate a dynamic market environment with resilience and precision." This indicates confidence in their strategic framework and operational capabilities. * **Strategic Priorities:** "Our priorities remain clear – accelerate growth across categories, enhance customer engagement, and strengthen execution capabilities to capture opportunities in a gradually improving demand landscape." This outlines the key areas of focus for the near to medium term. * **Vision:** "To be a leading global provider of innovative, sustainable Home & Building solutions." This long-term vision guides all strategic decisions and investments. * **Implied Revenue Target:** $1 billion (likely revenue), signaling significant growth ambition.

**Emerging Opportunities and Whitespace:** * **Construction Chemicals:** The acquisition of Clean Coats positions BirlaNu strongly in the "fast-growing, high-value Construction Chemicals segment," which is a significant emerging opportunity. * **Eco-friendly Building Materials:** The focus on "developing eco-friendly building materials" taps into the growing demand for sustainable construction, representing a key whitespace. * **Digitalization of Customer Experience:** Expanding digital footprint and enhancing customer engagement through technology offers opportunities to capture new customer segments and improve loyalty. * **Tier 2/3 Market Penetration:** While not explicitly stated, the extensive distribution network and new facilities in regions like Patna and AP suggest opportunities in expanding reach to emerging markets within India. * **Global Market Access:** Leveraging the Clean Coats acquisition to expand into 27+ new countries for coatings and specialty chemicals.

**Transformation Themes and Inflection Points:** * **Sustainability Transformation:** The shift towards eco-friendly products and sustainable practices is a major transformation. * **Digital Transformation:** Digitalizing core operations and customer engagement is a fundamental shift in business processes and market interaction. * **Portfolio Transformation:** Strategic acquisitions like Clean Coats indicate a transformation towards a more diversified, high-value product portfolio. * **Profitability Inflection:** The significant turnaround in EBITDA in Q2 FY26 suggests an inflection point in profitability, moving from losses to positive growth.

**Long-term Structural Trends (5-10 year view):** * **Urbanization and Infrastructure Development:** Continued urbanization, especially in emerging economies, will drive long-term demand for building materials. * **Sustainability Imperative:** Increasing environmental awareness and regulations will make sustainable and green building materials a standard, not a niche. * **Technological Advancement:** Automation in manufacturing, smart building materials, and digital integration in construction will reshape the industry. * **Premiumization:** Growing disposable incomes and aspirations will drive demand for higher-quality, aesthetically pleasing, and specialized building solutions. * **Consolidation:** The trend of M&A activity is likely to continue, leading to a more consolidated industry structure with larger, more diversified players.

**Potential Disruptions on the Horizon:** * **Climate Change Impacts:** Extreme weather events could disrupt supply chains, damage infrastructure, and alter demand for certain products (e.g., more resilient roofing). * **Material Science Breakthroughs:** Revolutionary new materials could render existing products obsolete. * **Economic Volatility:** Persistent global economic instability could prolong demand sluggishness. * **Geopolitical Shifts:** Trade wars, protectionism, or regional conflicts could severely impact global operations.

**Expected Margin Evolution:** Management's confidence in "further improvements in profitability" and the "value enhancement exercise with BCG" strongly suggest an expectation of continued margin expansion. The 330 bps EBITDA expansion in Q2 FY26 and the 720 bps improvement in Parador's operating margins are indicative of this positive trajectory. As demand improves and cost discipline continues, BirlaNu aims for sustained growth in profitability. The acquisition of Clean Coats, being "margin accretive from day one," is also expected to contribute positively to the overall margin profile.

I. COMPANY-BY-COMPANY PROFILES

BirlaNu Limited (formerly HIL Limited)

**Company Name and Brief Description:** BirlaNu Limited, formerly known as HIL Limited, is a pioneer and global leader in home and building solutions, with a legacy spanning nearly 80 years since 1946. Part of the US$ ~3 billion CKA Birla Group, the company offers a comprehensive portfolio of products across roofs, walls, pipes, construction chemicals, and floors, marketed under strong brands like Charminar, BirlaNu Aerocon, BirlaNu Leakproof Pipes, Topline, and Parador. BirlaNu is committed to innovation, sustainability, and digital transformation, serving customers through an extensive global network.

**Scale Metrics (revenue, capacity, market share):** * **Revenue (H1 FY26 Consolidated):** INR 1,862 Cr (a (1)% YOY decline from H1 FY25). * **Revenue (Q2 FY26 Consolidated):** INR 810 Cr (a 5% YOY growth from Q2 FY25). * **Installed Capacity:** * Roofs (Charminar): 1.1 million MT * Walls (BirlaNu Aerocon): Blocks 1.3 million CuM, Boards & Panels 2.3 lakh MT * Pipes & Fittings (BirlaNu Leakproof Pipes): 100k+ MTPA * Putty (BirlaNu Trucolour Putty): 250k+ MTPA * Floors (Parador): 15 million SQM * **Global Presence:** 33 manufacturing facilities across India, Germany, and Austria; sales presence in 80+ countries. * **Distribution Network:** 30,000+ retail points and 21k+ channel partners worldwide. * **Workforce:** 5,000+ strong workforce from 30+ nationalities. * **Market Share:** Not explicitly stated, but implied to be significant given its "global leader" status and extensive capacities.

**Financial Performance Summary (growth, margins, returns):** * **Q2 FY26 Consolidated Highlights:** * Revenue: INR 810 Cr (5% YOY growth) * EBITDA: INR 4 Cr (118% YOY growth from INR -22 Cr), with 330 bps EBITDA expansion. * PBT: INR -49 Cr (36% YOY growth from INR -76 Cr, excluding non-operating income). * PAT: INR -43 Cr (24% YOY growth from INR -56 Cr, excluding non-operating income). * **H1 FY26 Consolidated Highlights:** * Revenue: INR 1,862 Cr ((1)% YOY decline). * EBITDA: INR 63 Cr (20% YOY growth from INR 52 Cr). * PBT: INR -44 Cr (20% YOY growth from INR -54 Cr, excluding non-operating income). * PAT: INR -44 Cr ((1)% YOY growth from INR -44 Cr, excluding non-operating income). * **Segment Performance (Q2 FY26):** * Roofs: Revenue INR 191 Cr ((5)% decline), PBT INR 13 Cr (49% growth), 180 bps EBITDA expansion. * Walls: Revenue INR 155 Cr (18% growth), PBT INR 10 Cr (50% growth), 110 bps operating margin expansion. * Pipes and Construction Chemicals: Revenue INR 155 Cr ((6)% decline), PBT INR -13 Cr (17% growth), 110 bps EBITDA improvement. * Floors (Parador): Revenue INR 309 Cr (11% growth), PBT INR -29 Cr (40% growth), 720 bps operating margin improvement. * **Overall:** Demonstrating strong profitability recovery (EBITDA growth) despite mixed revenue performance and negative PBT/PAT, driven by operational efficiencies and cost discipline.

**Strategic Priorities and Focus Areas:** 1. **Profitability Enhancement:** Prioritized action on profitability levers, sustained cost discipline, and a comprehensive value enhancement exercise with BCG. 2. **Accelerated Growth:** Across categories, driven by relentless sales push, volume growth, and strategic acquisitions. 3. **Customer Engagement:** Enhancing engagement through digital transformation, connecting with retailers and influencers, and skill development programs. 4. **Strengthened Execution:** Improving operational capabilities to capture opportunities in a dynamic market. 5. **Innovation & Sustainability:** Developing eco-friendly building materials and launching innovative products. 6. **Digital Transformation:** Digitalizing core systems, platform development, data layer enhancement, and analytics. 7. **Inorganic Growth:** Strategic acquisitions like Clean Coats to expand portfolio and market access.

**Competitive Advantages and Positioning:** * **Legacy & Trust:** Nearly 80 years of experience, part of the CKA Birla Group. * **Global Leadership:** Pioneer and global leader in home and building solutions. * **Strong Brands:** Charminar, BirlaNu Aerocon, BirlaNu Leakproof Pipes, Topline, Parador. * **Extensive Network:** 30,000+ retail points, 21k+ channel partners, 80+ countries. * **Diversified Portfolio:** Comprehensive range of products across multiple building material categories. * **Innovation Focus:** 3 innovation hubs, commitment to eco-friendly products. * **Operational Scale:** 33 manufacturing facilities. * **Talent & Culture:** High employee engagement, recognized as a "Best Workplace."

**Key Metrics and KPIs specific to the company:** * EBITDA growth and margin expansion (e.g., 330 bps consolidated Q2). * Segment-wise revenue and PBT growth/decline. * Digital footprint metrics (views, reach, followers). * Employee engagement score (94). * Training hours and people trained. * CSR beneficiaries reached. * Capacity utilization (implied by volume trends).

**Management Outlook and Guidance:** * Confident of further improvements in profitability. * Well-positioned to maintain momentum and navigate dynamic market. * Priorities: accelerate growth, enhance customer engagement, strengthen execution. * Vision: To be a leading global provider of innovative, sustainable Home & Building solutions. * Implied target: $1 billion revenue.

**Recent Developments and Initiatives:** * **Acquisition:** Completed 100% acquisition of Clean Coats Pvt. Limited for INR 110.19 Cr, adding 275+ products and global market access in construction chemicals. * **Manufacturing Expansion:** New OPVC facility in Patna; green-field project in AP for Designer Boards. * **Digital Transformation:** Ongoing digitalization of core systems, platform development, data layer enhancement, and analytics. * **Product Innovation:** Several innovative launches planned, focus on eco-friendly materials. * **Value Enhancement:** Initiated a comprehensive value enhancement exercise with BCG. * **Awards & Recognition:** Superbrand 2025, Most Trusted BRANDS of India 2024-2025, Best Workplaces™ in Manufacturing INDIA 2025, etc.

J. TABLES

Table 1: BirlaNu Limited - Consolidated Financial Highlights

| Metric | Q2 FY26 (INR Cr) | Q2 FY25 (INR Cr) | YOY Growth (%) | H1 FY26 (INR Cr) | H1 FY25 (INR Cr) | YOY Growth (%) | | :---------------------- | :--------------- | :--------------- | :------------- | :--------------- | :--------------- | :------------- | | Revenue | 810 | 774 | 5% | 1,862 | 1,881 | (1)% | | EBITDA | 4 | -22 | 118% | 63 | 52 | 20% | | PBT (excl. non-op income) | -49 | -76 | 36% | -44 | -54 | 20% | | PAT (excl. non-op income) | -43 | -56 | 24% | -44 | -44 | (1)% |

*Note: PBT & PAT for Q2 FY25 and H1 FY25 exclude non-operating income of INR 82 Cr and INR 71 Cr (net of tax) respectively, arising from the sale of assets.*

Table 2: BirlaNu Limited - Standalone Financial Highlights

| Metric | Q2 FY26 (INR Cr) | Q2 FY25 (INR Cr) | YOY Growth (%) | H1 FY26 (INR Cr) | H1 FY25 (INR Cr) | YOY Growth (%) | | :---------------------- | :--------------- | :--------------- | :------------- | :--------------- | :--------------- | :------------- | | Revenue | 479 | 481 | (1)% | 1,206 | 1,256 | (4)% | | EBITDA | 17 | 10 | 69% | 78 | 91 | (14)% | | PBT (excl. non-op income) | -5 | -13 | 61% | 33 | 45 | (26)% | | PAT (excl. non-op income) | -3 | -11 | 69% | 25 | 32 | (22)% |

*Note: PBT & PAT for Q2 FY25 and H1 FY25 exclude non-operating income of INR 82 Cr and INR 71 Cr (net of tax) respectively, arising from the sale of assets.*

Table 3: BirlaNu Limited - Q2 FY26 Segment Performance

| Segment | Revenue (INR Cr) | Q2 FY25 Revenue (INR Cr) | YOY Growth (%) | PBT (INR Cr) | Q2 FY25 PBT (INR Cr) | YOY Growth (%) | | :---------------------------- | :--------------- | :----------------------- | :------------- | :----------- | :------------------- | :------------- | | Roofs | 191 | 200 | (5)% | 13 | 9 | 49% | | Walls | 155 | 131 | 18% | 10 | 7 | 50% | | Pipes and Construction Chemicals | 155 | 165 | (6)% | -13 | -15 | 17% | | Floors | 309 | 278 | 11% | -29 | -48 | 40% |

Table 4: BirlaNu Limited - Balance Sheet (Standalone)

| Metric | As of 30.09.2025 (INR Cr) | As of 31.03.2025 (INR Cr) | | :---------------------- | :------------------------ | :------------------------ | | Shareholder's funds | 1,269 | 1,267 | | Non-current liabilities | 116 | 119 | | Current liabilities | 612 | 643 | | Total Equity & Liabilities | 1,997 | 2,029 | | Non-current assets | 1,365 | 1,360 | | Current assets | 632 | 669 | | Total Assets | 1,997 | 2,029 |

Table 5: BirlaNu Limited - Balance Sheet (Consolidated)

| Metric | As of 30.09.2025 (INR Cr) | As of 31.03.2025 (INR Cr) | | :---------------------- | :------------------------ | :------------------------ | | Shareholder's funds | 1,179 | 1,211 | | Non-current liabilities | 580 | 579 | | Current liabilities | 1,206 | 1,136 | | Total Equity & Liabilities | 2,965 | 2,926 | | Non-current assets | 1,875 | 1,819 | | Current assets | 1,090 | 1,107 | | Total Assets | 2,965 | 2,926 |

Table 6: BirlaNu Limited - Installed Capacities

| Product Segment | Brand | Installed Capacity | | :-------------------------- | :------------------ | :---------------------- | | Roofs | Charminar | 1.1 million MT | | Walls (Blocks) | BirlaNu Aerocon | 1.3 million CuM | | Walls (Boards & Panels) | BirlaNu Aerocon | 2.3 lakh MT | | Pipes & Fittings | BirlaNu Leakproof Pipes | 100k+ MTPA | | Putty | BirlaNu Trucolour Putty | 250k+ MTPA | | Floors | Parador | 15 million SQM |

Table 7: BirlaNu Limited - Digital Footprint (Q2 FY26)

| Metric | Value | | :-------------------------- | :------------------ | | Views & Interactions | 59.5M+ | | Reach | 25.8M+ | | Follower/Subscriber Count (Q1 FY26) | 111,954 | | Follower/Subscriber Count (Q2 FY26) | 117,104 | | Instagram Followers | 9,691 | | Facebook Followers | 53K | | YouTube Subscribers | 4K | | LinkedIn Followers | 50K | | OTT Views | 5 Cr+ | | YouTube Views | 1.6 Cr+ | | Meta Views | 55 L+ | | Website Visitors | 7.41 L+ |