DCM Shriram Limited announced its financial results for the second quarter and half year ended September 30, 2026. The company reported a 22% year-on-year increase in net revenues for Q2 FY27, reaching INR 3,977 crore. This growth was primarily driven by strong performances in the Chemicals, Vinyl, Fertilizer, and Fenesta businesses. The PBDIT for the quarter stood at INR 319 crore, while the company also announced an interim dividend of 200%.
DCM Shriram Reports Strong Q2 FY27 Performance
DCM Shriram Limited has announced its financial results for the second quarter (Q2) and the first half (H1) of the financial year 2027, ending September 30, 2026. The company showcased robust top-line growth, with net revenues (net of excise duty) for Q2 FY27 reaching INR 3,977 crore, an increase of 22% compared to INR 3,272 crore in Q2 FY26. This growth was attributed to the strong performance across its key business segments, including Chemicals, Vinyl, Fertilizer, and Fenesta Building Systems.
Financial Highlights
Profit Before Depreciation, Interest, and Taxes (PBDIT) for Q2 FY27 was reported at INR 319 crore, a decrease from INR 408 crore in Q2 FY26. This dip was primarily due to higher input costs in the Chemicals segment and lower earnings from the Agri input businesses. Notably, the previous year’s quarter included a one-time positive impact of INR 76 crore from a government incentive in the chemicals business and INR 15.5 crore in the Sugar business.
The company’s net debt stood at INR 917 crore as of September 30, 2026, compared to INR 773 crore in the previous year. Return on capital employed for September 2026 was 12%, down from 15% in the prior year. The Board of Directors also approved an interim dividend of 200%, amounting to INR 62.38 crore.
Segmental Performance
Chemicals
The Chemicals business reported a significant revenue increase of 47% year-on-year. Caustic soda volumes grew by 2%, with ECU prices rising by 6%. New products, including Hydrogen Peroxide and Aluminium Chloride, contributed positively to the top line. However, PBDIT for the segment declined to INR 158 crore from INR 254 crore due to increased input costs, partially offset by better realisations and volumes. The prior year’s figure included a one-time INR 76 crore incentive from the Government of Gujarat.
Vinyl
Revenues in the Vinyl segment rose by 20% year-on-year, driven by higher volumes and realisations in both PVC and Carbide. PVC volumes increased by 29% and prices by 25%, while Carbide volumes and prices were up 15% and 16% respectively. PBDIT was higher at INR 51 crore compared to INR 12 crore last year, due to improved volumes and realisations, despite higher input costs.
Sugar & Ethanol
The Sugar & Ethanol business saw a 10% year-on-year revenue increase. Domestic sugar prices were up 14%, although volumes decreased by 6%. Ethanol volumes saw a 24% rise. PBDIT for the segment was INR 62 crore, up from INR 33 crore last year. The previous year’s PBDIT included a positive impact of INR 15.5 crore from an upward revision of power tariff.
Fenesta Building Systems
Fenesta Building Systems reported a 22% revenue increase year-on-year, with the project vertical leading the growth. PBDIT was up 15% at INR 49 crore, though margins were slightly lower due to a change in product mix, elevated input costs, and higher fixed expenses for new revenue platforms.
Shriram Farm Solutions
Revenues in Shriram Farm Solutions declined by 10% year-on-year due to lower volumes in the Seed and Specialty Plant Nutrition verticals. PBDIT for the quarter was lower at INR 78 crore compared to INR 106 crore last year. The challenging Kharif season, influenced by El Nino conditions, impacted demand for agriculture inputs.
Fertilizer
Fertilizer revenues surged by 40% year-on-year, primarily driven by a 46% increase in realisations due to higher gas prices. PBDIT increased by 25% to INR 25 crore, benefiting from better margins and improved energy efficiency. Outstanding fertilizer subsidy stood at INR 446 crore as of September 30, 2026.
Bioseed
The Bioseed segment experienced lower revenue due to severe El Nino conditions weakening industry demand. PBDIT for the quarter was negative INR 41 crore, against negative INR 7 crore last year, reflecting lower volumes and higher provisions for doubtful debts.
Outlook and Strategic Initiatives
DCM Shriram highlighted its focus on optimizing cost management, driving operational reliability, and advancing forward integration through new product lines and capacity expansions. The company is also committed to its sustainability roadmap, integrating ESG principles into its operations. Key projects nearing completion include facilities for Aluminium Chloride, Calcium Chloride, and an aluminium extrusion plant.
The company expressed confidence in India’s long-term growth potential and the resilience of its diversified businesses, despite a challenging global operating environment marked by geopolitical uncertainty and volatile energy costs.
Source: BSE
