A)Business Overview

Dalmia Bharat Refractories Ltd. (DBRL) continued its strategic journey in FY 2024–25 with a dual focus on:

• Strengthening its core magnesia carbon refractory business

• Reviving the newly acquired tyre business of Birla Tyre through CIRP (in partnership with Himadri Specialty Chemicals)

Despite operational challenges, DBRL has shown resilience and aims to capitalize on industry tailwinds across steel, automotive, and infrastructure sectors.

B) Financial Highlights (Consolidated)

📌 EBITDA margin improvement reflects better cost management, operating efficiency, and possibly higher margin mix from mag-carbon exports.

C) Key Business Developments

1️⃣ Magnesia Carbon Refractories (Core Business)

• Focused investment and production at Salem plant aligns with “Make in India” vision.

• Global subsidiaries (OCL Global & OCL China) ensured uninterrupted service to international clients.

• Global outlook remains favorable with increasing demand from:

  • Steel production via Electric Arc Furnaces (EAF)

  • Advancements in eco-friendly and nano-carbon refractory technologies

• Risks remain from raw material volatility and price competition.

2️⃣ Tyre Business Revival

• Acquired through Insolvency Process jointly with Himadri Specialty Chemical.

• Revival efforts included:

  • Upgrading production infrastructure

  • Building leadership and workforce alignment

• Labour unrest at manufacturing facilities slowed progress.

• Company is adopting structured dialogue mechanisms to build long-term workforce stability.

3️⃣ Proposed Acquisitions

• Progress made toward acquiring Dalmia Magnesite Corporation and Govan Travels (divisions of Dalmia Bharat Sugar).

• Deal pending NCLT approval; expected to strengthen DBRL’s asset base and diversify operations.

D) Industry Tailwinds

 Refractory Market:

• Technavio projects steady global growth till 2028.

• Key growth drivers:

  • Eco-friendly refractories

  • Rise in EAF steel manufacturing

  • Nano-carbon advancements

Tyre Market:

• Global market to cross $250 Bn by 2026 (Statista)

• India is the 2nd largest 2W tyre producer; poised for strong growth in:

  • Replacement cycle

  • EV-compatible tyres

  • Low-rolling-resistance segment (due to sustainability push)

F) UnlistedZone View

DBRL is positioning itself as a diversified industrial play spanning high-growth verticals — refractories and tyres. Key positives include:

• Strong operating leverage visible from EBITDA growth

• Strategic alignment with EV and green steel themes

• Focused revival and expansion strategy

However, the execution risks in the tyre business and competition in refractories require close monitoring.

🔚 Conclusion

DBRL’s FY25 performance suggests a company in transition with upside potential, especially if:

• Tyre division stabilizes post labour unrest

• Proposed acquisitions materialize

• Global demand trends in steel and mobility remain strong

Investors in the unlisted space should track DBRL’s progress on regulatory clearances, revival of its tyre plant, and margin consistency before re-rating the company.

📌 For any queries regarding DBRL’s unlisted shares or market valuation trends, connect with the UnlistedZone research desk.