DCM Shriram Q1 FY26: 12% Revenue Growth and 19% PBDIT Surge Signal Strategic Strength

22 July 2025, New Delhi: DCM Shriram Ltd, a diversified conglomerate with a strong presence across the agri-rural value chain, chemicals, and the vinyl industry, announced its financial results for the first quarter ended June 30, 2025 (Q1 FY26). The company demonstrated robust operational performance, supported by its long-term strategic focus and disciplined execution amid ongoing global economic headwinds.

For Q1 FY26, DCM Shriram reported consolidated revenues of ₹3,455 crore, marking a 12% year-on-year growth. Profit before depreciation, interest, and tax (PBDIT) stood at ₹326 crore, reflecting a 19% increase over the previous year. Net profit (PAT) rose 13% to ₹114 crore, despite a one-time adverse impact of approximately ₹36 crore due to a retrospective levy imposed on ethanol exports outside Uttar Pradesh.

The company’s annualized Return on Capital Employed (ROCE) stood at 13.2%, and net debt remained stable at ₹1,481 crore, highlighting sound financial management and a strong capital position.

Leadership Commentary

In a joint statement, Mr. Ajay Shriram, Chairman & Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman & Managing Director, said, “Despite rising global uncertainties, DCM Shriram continues to navigate the economic environment with agility and foresight. While global growth remains subdued amid trade tensions, tariff hikes, and geopolitical instability, India is emerging as the fastest-growing large economy. Our focus remains on leveraging this momentum through strategic investments, policy engagement, and innovation.”

They noted that the global caustic soda market continues to face supply-side disruptions, keeping prices range-bound. Nevertheless, DCM Shriram’s Chemicals business recorded volume-led growth supported by improved margins. The company is also advancing its entry into the advanced materials segment through the acquisition of Hindusthan Specialty Chemicals Ltd (HSCL), furthering its forward integration into epoxy production.

The Sugar and Ethanol business remains stable but continues to face margin pressure. The leadership criticized the retrospective export duty imposed by the Uttar Pradesh government on ethanol, calling it a regressive move that underscores the need for urgent policy reform to sustain long-term viability for both farmers and manufacturers.

Fenesta, the company’s windows and doors business, maintained its growth momentum while expanding into new segments. The acquisition of a majority stake in a hardware company will help diversify its portfolio and improve customer value.

Shriram Farm Solutions also recorded notable progress by expanding its product portfolio and enhancing digital outreach to strengthen its connection with farmers. The business is focusing on innovation, farmer engagement, and differentiated offerings to scale its agri-input operations sustainably. “Our strong balance sheet allows us to pursue new opportunities—both organic and inorganic—while embedding sustainability and resilience into every facet of our operations,” the leadership added.

Strategic and Operational Highlights – Q1 FY26

• Completed Acquisition: Acquired 53% stake in DNV Global Pvt. Ltd. to support backward integration for Fenesta’s product line.
• Forward Integration in Chemicals: Signed definitive agreement to acquire 100% of Hindusthan Specialty Chemicals Ltd. (HSCL), marking a strategic step into advanced materials through epoxy manufacturing.

Key Upcoming Milestones:

• Commissioning of a 52,000 TPA Epichlorohydrin (ECH) plant by Q2 FY26
• Completion of a 68 MW renewable energy joint venture with JSW Renewables at the Kota complex
• Commissioning of Aluminium Extrusion facility within FY26
• Launch of Aluminium Chloride and Calcium Chloride plants by FY27

Outlook

DCM Shriram’s investment strategy continues to prioritize strengthening its core businesses, expanding into adjacent verticals, and driving sustainability. With capital-efficient expansion, strategic acquisitions, and deep market engagement, the company is well-positioned to capture future growth across chemicals, agri-inputs, infrastructure, and advanced materials.

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