DCM Shriram gains after Q1 PAT rises 13% YoY to Rs 113 cr

DCM Shriram advanced 1.65% to Rs 1,411 after the company's consolidated net profit increased by 13.04% to Rs 113.38 crore in Q1 FY26, compared to Rs 100.30 crore posted in Q1 FY25.

Revenue from operations (excluding excise duty) grew 13.42% year-on-year (YoY) to Rs 3,248.63 crore for the quarter ended 30 June 2025.

Profit before tax (PBT) in Q1 FY26 stood at Rs 170.16 crore, up 7.47% from Rs 158.33 crore reported in the same quarter last year. Profit before depreciation, interest, and tax (PBDIT) stood at Rs 326 crore, registering a growth of 19% YoY.

During the quarter, revenue from the Chemicals & Vinyl segment stood at Rs 1,113.78 crore, up 32.28% year-on-year (YoY). The Fenesta Building Systems segment recorded revenue of Rs 248.40 crore, up 21.19% YoY, while revenue from Shriram Farm Solutions (SFS) rose 28.94% YoY to Rs 349.64 crore.

The Fertiliser segment posted revenue of Rs 18.86 crore, up 18.86% YoY, and the Bioseed segment registered revenue of Rs 284 crore, marking a 30.15% YoY growth. In contrast, revenue from the Sugar & Ethanol segment declined 11.70% YoY to Rs 1,017.34 crore.

The company reported a one-time negative impact of around Rs 36 crore during the quarter due to the retrospective levy of duty on ethanol exported outside the state of Uttar Pradesh.

Annualized return on capital employed (ROCE) stood at 13.2%, while net debt remained stable at Rs 1,481 crore, reflecting financial prudence and a strong capital structure.

On the strategic front, the company made notable progress in executing its capital expenditure roadmap. In Q1 FY26, it completed the acquisition of a 53% stake in DNV Global to strengthen backward integration in its Fenesta business. Additionally, the company signed a definitive agreement for the 100% acquisition of Hindusthan Speciality Chemicals (HSCL). This acquisition aligns with its forward integration plans for ECH into epoxy, marking the beginning of its journey into advanced materials. The acquisition is expected to be completed by Q2 FY26.

Ajay Shriram, chairman & senior managing director and Vikram Shriram, vice chairman & managing director, said, Global growth is hovering just above what many analysts consider a recessionary threshold. Trade tensions - particularly new and higher tariffs in major economies, policy unpredictability and geo-politics are dampening investor confidence, slowing investment and causing supply chain disruptions. Financial market volatility has increased sharply in 2025, contributing to a precarious economic climate. India is consolidating its place as the fastest-growing large economy, having recently become the worlds fourth largest, and is projected to continue this trajectory with policies aimed at attracting investment and fostering innovation.

Global caustic soda supply chain is disrupted owing to tariff related headwinds and geo-political conflicts, keeping international prices range bound. The business witnessed volume led growth with improved margins. The company has accelerated its entry into advanced materials through its proposed acquisition of 100% stake in Hindusthan Specialty Chemicals.

Sugar and Ethanol business is stable but facing margin pressures. Lower than expected stock levels should fundamentally support prices of Sugar. Recent retrospective levy of export fee from 2018 on Ethanol sold outside the state of UP, is a regressive step by the state government. A comprehensive review and reform of the sugar policy framework is essential to ensure financial viability for both farmers and manufacturers.

Fenesta continues to advance its growth trajectory in the core business while strategically broadening its portfolio and revenue platforms. The acquisition of a majority stake in a hardware company is a strategic step towards building a growth pipeline. The business is focusing on delivering value and service to its customers along with a higher wallet share in home space.

With a strong emphasis on innovation and digital connectivity, Shriram Farm Solutions is enhancing its scale and product portfolio of differentiated offerings while deepening its engagement with the farming community.

Backed by a robust balance sheet, were advancing into adjacent business areas, leveraging both organic and inorganic opportunities, and embedding sustainability at every stage to secure responsible, long-term growth.

DCM Shriram is a diversified and integrated business entity with an extensive and growing presence across the Agri-Rural value chain and the Chemicals & Vinyl industry. The company also has an innovative value-added business, Fenesta Building Systems. Access to captive power at all key manufacturing units enables the businesses to optimize their competitive edge.

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