DCM Shriram reported a 13% year-on-year increase in net revenues for Q3 FY26, driven by the Chemicals, Sugar & Ethanol, Fenesta, and Shriram Farm Solutions businesses. PBDIT increased by 4% year-on-year. The company is actively engaging with the government regarding MIP for the PVC industry and is seeing a positive impact from China’s removal of VAT benefits. Focus remains on sustainable growth and value creation.
Financial Performance
For Q3 FY26, DCM Shriram’s net revenues reached Rs 3,811 crores, up from Rs 3,367 crores in Q3 FY25. This represents a 13% increase year-on-year. PBDIT for the quarter was Rs 560 crores, compared to Rs 537 crores in the same period last year, a 4% increase. Profit after tax stood at Rs. 213 crores after adjusting for an exceptional item related to new labor codes.
Segmental Performance
Chemicals
The Chemicals business saw a 30% revenue increase, driven by higher caustic soda volumes and contributions from new projects. However, PBDIT was down by 8% due to increased fixed costs. The company is working on stabilizing new plants and expanding its sales network for Epichlorohydrin (ECH), including exports.
Sugar & Ethanol
The Sugar & Ethanol business reported a 15% increase in revenue. Both domestic sugar and ethanol volumes increased. PBDIT for the segment was Rs 204 crores, up from Rs 112 crores last year, aided by a reversal of provision related to retrospective duty on ethanol exports.
Fenesta Building Systems
Fenesta’s revenues increased by 28% year-on-year, led by the project vertical. However, PBDIT decreased due to product mix and higher fixed costs from investments in growth platforms.
Shriram Farm Solutions
Shriram Farm Solutions reported a 7% revenue increase, supported by research wheat and specialty nutrients. PBDIT was down mainly due to moderation in research wheat margins.
Strategic Initiatives and Outlook
The company is actively pursuing a Minimum Import Price (MIP) with the government for the PVC industry and expects positive impacts from China’s removal of VAT benefits on PVC. Major investments in the chemical segment are nearing completion, positioning the company for future growth. The company anticipates healthy profitability from the epoxy resin business starting in FY27. DCM Shriram remains focused on sustainable growth, operational efficiency, and value creation across all its businesses.
Source: BSE
