DCM Shriram has announced its audited financial results for the quarter and year ended March 31, 2026. The company reported a significant performance, leading to a recommended final dividend of 200% (Rs. 4 per share). For the full year, total dividend aggregates to 560% (Rs. 11.20 per share). Additionally, the Board approved a major Rs. 101 crore capital investment by Hindusthan Specialty Chemicals Ltd to expand its formulated resins capacity.
Robust Annual Financial Performance
DCM Shriram delivered strong financial results for the fiscal year ended March 31, 2026. The company achieved a total revenue of Rs. 13,995.33 crore, reflecting substantial growth compared to the previous year. Profit after tax for the full year stood at Rs. 837.55 crore, marking a significant increase from the Rs. 566.53 crore reported in the previous fiscal year.
Dividend Payout and Shareholder Value
In recognition of the company’s strong financial health, the Board of Directors has recommended a final dividend of Rs. 4 per equity share (face value of Rs. 2 each). Combined with two interim dividends of Rs. 3.60 per share each, declared in October 2025 and January 2026, the total dividend for the 2025-26 financial year aggregates to Rs. 11.20 per share, representing a 560% payout.
Strategic Capacity Expansion
The company is aggressively pursuing growth in its Advanced Materials portfolio. The Board has approved a Rs. 101 crore capital expenditure plan for its wholly owned subsidiary, Hindusthan Specialty Chemicals Ltd (HSCL). This investment aims to augment the capacity of Formulated Resins by 36K TPA, bringing the total capacity to 50K TPA. To support this growth, the company will provide financial assistance of up to Rs. 100 crore to HSCL through a mix of equity and debt.
Operational Highlights
During the quarter ended March 31, 2026, the company successfully commissioned the balance capacity of 17,000 TPA of Epichlorohydrin (ECH) at its Jhagadia chemical complex in Gujarat. With this addition, the total capacity of the ECH plant has reached 52,000 TPA, further strengthening the company’s manufacturing footprint and operational efficiency.
Capital Restructuring
The Board has also approved the cancellation of 39,00,000 forfeited equity shares, a legacy move concerning shares originally forfeited in 2005. This proposal is subject to necessary shareholder approvals, highlighting the company’s commitment to cleaning up its capital structure.
Source: BSE
