Dalmia Bharat Subsidiary Buys Stake in Renewable Project

Dalmia Cement (Bharat) Limited (DCBL), a subsidiary of Dalmia Bharat Ltd, is set to acquire a 41% stake in Oyster Green Hybrid Five Private Limited for about ₹17.35 crore. This Special Purpose Vehicle (SPV) is developing a 21.6 MW wind and 14 MWp solar hybrid power project designed to supply captive power to DCBL's Kadapa plant in Andhra Pradesh. The deal, signed April 29, 2026, is anticipated to conclude within four months.

Boosting Sustainability Goals

The acquisition aligns with Dalmia Bharat Group's sustainability targets, including its RE100 commitment to use 100% renewable electricity by 2030 and its goal to be carbon negative by 2040. Sourcing renewable power through captive projects helps lower operating costs and reduce the company's carbon footprint.

Past Renewable Investments

Dalmia Bharat has actively expanded its renewable energy portfolio. In March 2026, DCBL bought a stake in Ventora Energy Private Limited for wind power. Earlier, it invested in solar SPVs in 2025 and 2026 for captive power. The company also made a significant move in December 2022 by acquiring cement assets from Jaiprakash Associates Limited for ₹5,666 crore, broadening its presence in Central India and strengthening its position as a national cement player.

Impact on Operations

This deal diversifies Dalmia Bharat's energy mix and strengthens operational resilience. It advances the company towards its RE100 and carbon negativity objectives.

Potential Risks

The acquisition is subject to standard conditions that could delay or prevent its completion. Dalmia Bharat and its subsidiaries have faced regulatory challenges, including a ₹9.20 crore penalty in February 2025 for ineligible input tax credit (ITC) claims. The Serious Fraud Investigation Office (SFIO) has also recommended prosecution against key individuals for alleged financial irregularities. Additionally, an asset attachment order under the Prevention of Money Laundering Act (PMLA) for land worth ₹377.26 crore is currently under legal challenge.

Peer Comparison

Major competitors like UltraTech Cement and Shree Cement are also investing heavily in renewable energy. UltraTech has 555 MW of green capacity and targets 100% renewable electricity by 2050. Shree Cement uses about 56% renewable energy, one of the highest rates in India's cement sector, with substantial solar capacity.

Key Figures

As of FY 2025, Dalmia Bharat had 136 MW of solar capacity and 72 MW from Waste Heat Recovery Systems (WHRS).

Looking Ahead

Investors will monitor the successful completion of the Oyster Green Hybrid Five acquisition. Further updates on Dalmia Bharat's renewable energy investments and progress toward its sustainability goals will be watched. The resolution of the company's ongoing regulatory and legal issues will also be significant.