DCM Shriram’s Q2 FY’26 earnings call highlighted an 11% year-on-year revenue increase to ₹3,272 crore, driven by Chemicals, Fenesta, and Shriram Farm Solutions. PBDIT rose by 74% to ₹408 crore. The company discussed segment performance, expansion plans, and sustainability initiatives. Focus remains on operational efficiency, strategic acquisitions, and navigating market challenges across its diverse businesses.
Financial Performance Overview
DCM Shriram reported a strong financial performance in Q2 FY’26. Key highlights include:
- Net revenues (net of excise duty) reached ₹3,272 crore, an 11% increase compared to ₹2,957 crore in Q2 FY’25.
- PBDIT increased significantly by 74% to ₹408 crore, up from ₹235 crore in the same quarter last year.
Segmental Performance
Chemicals
- Reported a 50% year-on-year revenue increase, propelled by a 22% rise in caustic soda volumes due to new capacity utilization.
- PBDIT surged by 195% due to lower input prices and improved operating efficiencies.
- Benefited from a ₹76 crore subsidy from the Government of Gujarat related to previous projects.
Vinyl
- Revenues increased by 15% year-on-year, driven by higher volumes.
- PBDIT was lower at ₹12 crore compared to ₹16 crore last year due to lower prices.
Sugar and Ethanol
- Revenue (net of excise duty) decreased by 6% year-on-year.
- PBDIT increased to ₹33 crore from ₹14 crore last year.
- Benefited from a ₹15.5 crore positive impact due to upward revision of power tariff by UPPCL.
Fenesta Building Systems
- Revenues increased by 28% year-on-year, driven by project verticals.
Shriram Farm Solutions
- Revenues increased by 27% year-on-year.
- PBDIT increased by 47% due to better margins in research wheat.
Fertilizer
- Revenues decreased by 8% year-on-year.
Strategic Initiatives and Outlook
- Acquired Hindusthan Speciality Chemicals Limited (HSCL) to accelerate growth in advanced material segments.
- Board approved acquisition of Salt works with a capacity of 2.1 lakh metric tons per annum in Gujarat for ₹175 crore, meeting around 13% of total salt demand.
- Commissioned a 35,000 tons per annum Epichlorohydrin (ECH) facility at Bharuch.
- Expanding aluminum chloride and calcium chloride capacities at Bharuch.
Sustainability Focus
- Actively exploring opportunities to increase renewable energy usage.
- Tied up approximately 68 megawatts of power for Kota site.
Source: BSE
