Image Source: DCM Shriram

DCM Shriram Ltd. reported a resilient performance for the first quarter of FY26, demonstrating its ability to navigate a turbulent global environment through disciplined execution and targeted capital deployment.

Solid Financial Performance Despite Volatility
For the quarter ended June 30, 2025, the company recorded consolidated revenues of Rs 3,455 crore, up 12 per cent year-on-year. Profit before depreciation, interest, and tax (PBDIT) stood at Rs 326 crore, marking a 19 per cent increase, while Profit After Tax reached Rs 114 crore, up 13 per cent. These results were achieved despite a one-time Rs 36 crore retrospective charge on ethanol exported outside Uttar Pradesh. The company maintained a strong financial position, with net debt stable at Rs 1,481 crore and an annualized ROCE of 13.2 per cent.

Macro Headwinds Offset by Strategic Discipline
In a joint statement, Chairman and Senior Managing Director Ajay Shriram and Vice Chairman and Managing Director Vikram Shriram acknowledged the challenges posed by a fragile global economy. “Trade disruptions, rising tariffs, and geopolitical tensions have heightened uncertainty worldwide,” they said. “Yet India remains a standout performer. As the world’s fourth-largest economy, it is steadily advancing through reforms, investment-led growth, and digital transformation.”

Chemicals Business Anchors Growth; Advanced Materials in Focus
The company’s chemicals segment delivered solid performance, benefiting from stable pricing and volume-led expansion in caustic soda, even as global supply chains remain unsettled. As part of its strategy to transition into value-added platforms, DCM Shriram signed a definitive agreement to acquire 100 per cent of Hindusthan Speciality Chemicals Ltd. (HSCL). This forward integration move will strengthen its epoxy portfolio and marks a pivotal step in its journey toward high-performance advanced materials.

Sugar & Ethanol: Policy Frictions, Stable Outlook
DCM Shriram’s sugar and ethanol business remained operationally steady but under pressure from narrowing margins. The leadership strongly criticized the retrospective export duty levied by the UP government, calling it a regressive step. They advocated for a comprehensive overhaul of India’s sugar policy to ensure long-term viability for both farmers and industry stakeholders. Looking ahead, lower stock levels are expected to lend fundamental support to sugar prices.

Fenesta Expands Through Acquisitions and Integration
The Fenesta division maintained its growth trajectory in the core uPVC segment, while taking strategic steps to broaden its market presence. The acquisition of a majority stake in a hardware company during the quarter reflects the business’s goal of strengthening backward integration and enhancing its overall share in the home solutions ecosystem.

Farm Solutions Leverages Innovation and Farmer Engagement
Shriram Farm Solutions continued to deepen its presence across India’s agri-input landscape. With a strong push toward differentiated offerings and digital enablement, the business is focused on improving reach, farmer engagement, and long-term productivity outcomes. The company sees the convergence of agritech, sustainability, and rural value delivery as a key frontier for future growth.

Capex Roadmap on Track Across Key Verticals
Q1 FY26 marked meaningful progress on DCM Shriram’s investment roadmap. The company completed the acquisition of a 53 per cent stake in DNV Global Pvt Ltd to enhance supply chain resilience for Fenesta. The HSCL deal is expected to close in Q2. Other key projects underway include the commissioning of a 52,000 TPA Epichlorohydrin (ECH) plant, a 68 MW renewable energy JV with JSW Renewables at the Kota complex, and a new aluminium extrusion facility—all targeted for completion by FY26-end. Aluminium Chloride and Calcium Chloride plants are scheduled for commissioning by FY27.

A Future-Ready Enterprise Built on Integration, Innovation, and Sustainability
DCM Shriram’s strategy continues to emphasize strengthening core operations while scaling adjacencies through both organic and inorganic means. With a growing portfolio that spans clean chemicals, precision agri-inputs, green energy, and circular infrastructure, the company is embedding sustainability and long-term value creation into every aspect of its operations.

Despite a challenging global backdrop, DCM Shriram remains well-positioned to deliver resilient, responsible, and future-ready growth.