DCM Shriram Ltd, a diversified company with operations in agriculture, chemicals, and construction materials, has reported solid financial results for the quarter ending June 30, 2025 (Q1 FY26), despite global economic challenges.
Key Financial Highlights:
-
Revenue rose 12% year-on-year to ₹3,455 crore.
-
Operating profit (PBDIT) increased by 19% to ₹326 crore.
-
Net profit grew 13% to ₹114 crore.
-
A one-time loss of ₹36 crore was recorded due to a new export duty on ethanol sold outside Uttar Pradesh, applied retroactively.
-
Return on capital (ROCE) stood at 13.2%.
-
Net debt remained steady at ₹1,481 crore, reflecting strong financial discipline.
Management’s Perspective:
Chairman Ajay Shriram and Vice Chairman Vikram Shriram noted that the global economy remains fragile, with rising trade tensions, unstable policies, and geopolitical issues disrupting supply chains. Despite this, India is growing rapidly and is now the world’s fourth-largest economy.
Business Highlights:
-
Chemicals: Faced supply chain disruptions but still grew in volume and improved profit margins.
-
Advanced Materials: The company is expanding into this area through the acquisition of Hindusthan Specialty Chemicals.
-
Sugar & Ethanol: Business is stable, though under pressure from tight margins. The retrospective ethanol export fee from the UP government was criticized as regressive.
-
Fenesta (windows and doors): Continued to grow and diversified its product line with the acquisition of a majority stake in a hardware company.
-
Shriram Farm Solutions: Focused on innovation, expanding product offerings, and strengthening ties with farmers.
Strategic Moves:
-
Acquired a 53% stake in DNV Global to strengthen Fenesta’s supply chain.
-
Signed a deal to acquire 100% of Hindusthan Specialty Chemicals, supporting its expansion into epoxy and advanced materials.
Upcoming Projects:
-
A new 52,000 TPA Epichlorohydrin (ECH) plant.
-
A 68 MW renewable energy project with JSW Renewables.
-
New aluminium extrusion and chemical plants, expected by FY27.
The Big Picture:
DCM Shriram is staying the course on its long-term growth strategy—investing in core areas, exploring new opportunities, and embedding sustainability throughout its operations to ensure long-term success.
