Chemicals, Fenesta and Shriram Farm Solutions propel volume led growth momentum as the Company ramps up capacity utilization, strengthens downstream integration, advances sustainability initiatives and executes future-ready expansions

DCM Shriram Ltd. today announced its consolidated financial results for the quarter and year ended March 31, 2026, reporting a resilient performance across its diversified businesses despite continued global macroeconomic volatility, commodity price fluctuations, and sector-specific headwinds.

For FY 2025–26, the company recorded consolidated net revenue of Rs 14,264 crore, representing a growth of 12 per cent over the previous year. Consolidated PBDIT stood at Rs 1,694 crore, while Profit After Tax rose sharply by 42 per cent to Rs 856 crore. The reported PAT includes a one-time deferred tax credit of Rs 239 crore, arising from the company’s transition to the new tax regime under Section 115BAA of the Income Tax Act, 1961, effective FY27.

For Q4 FY26, consolidated net revenue stood at Rs 3,373 crore, compared with Rs 3,019 crore in the corresponding quarter of the previous year. Profit After Tax for the quarter increased significantly to Rs 371 crore, up from Rs 179 crore in Q4 FY25.

Management Commentary

Commenting on the results, Ajay Shriram, Chairman & Senior Managing Director, and Vikram Shriram, Vice Chairman & Managing Director, stated that FY26 unfolded amid sustained global uncertainty driven by geopolitical tensions, trade protectionism, and supply chain realignments. However, India’s macroeconomic resilience, supported by strong domestic demand and infrastructure spending, helped cushion the impact.

They highlighted strong performance in the Chemicals business, supported by volume growth, capacity ramp-ups, and downstream integration initiatives. The newly commissioned Epichlorohydrin (ECH) facility has begun operations and is witnessing encouraging market acceptance, further strengthening the company’s advanced materials value chain. The recently acquired epoxy and formulated resins business is also being scaled up in value-added segments.

The leadership further noted the company’s strategic focus on partnerships, including a joint venture in PVC compounding with a US-based partner to accelerate growth and technology access.

In the Sugar and Ethanol business, the company acknowledged industry-wide margin pressure due to higher cane costs and oversupply conditions. While sugar production increased, profitability remained constrained, reinforcing the need for supportive policy interventions.

Consumer-facing businesses — Fenesta Building Systems and Shriram Farm Solutions — continued to deliver strong growth momentum, driven by expanding market presence, product innovation, and healthy demand trends.

Segment Performance Highlights

The Chemicals & Vinyl business delivered strong growth, supported by expanded capacities and improved utilisation. Caustic soda volumes rose by 12 per cent during FY26, while contributions from hydrogen peroxide and advanced materials strengthened overall performance. The commissioning of the 52,000 TPA Epichlorohydrin plant at Bharuch in April 2026 marked a key milestone in the company’s integrated chemicals strategy. The acquisition of Hindusthan Speciality Chemicals Limited further expanded the epoxy and formulated resins portfolio.

The Vinyl business recorded 4 per cent revenue growth, driven by improved PVC volumes and operational efficiencies. The company also executed a strategic partnership in PVC compounds through the divestment of a 50 per cent stake in Shriram Polytech Ltd. to Teknor Apex B.V.

The Sugar & Ethanol segment remained under pressure due to higher cane costs and oversupply. Domestic sugar prices increased by 4 per cent, while volumes declined by 6 per cent. Ethanol margins remained stable, with sugar recovery improving to 10.8 per cent.

Fenesta Building Systems achieved revenue of Rs 1,112 crore, reflecting growth of 28 per cent, supported by strong performance across project and retail segments. The order book increased by 24 per cent to Rs 1,498 crore, with expansion in façades, hardware, and international markets.

Shriram Farm Solutions posted revenue of Rs 1,689 crore, marking growth of 18 per cent, driven by strong demand across agricultural inputs, particularly the research wheat segment.

Sustainability and Investments

The company reiterated sustainability as a core strategic priority. Green energy accounted for 27 per cent of total energy consumption, while water conservation levels significantly exceeded consumption. Ongoing investments include a 68 MW captive renewable energy project at Kota, additional renewable power capacity at Bharuch, and expansion projects across chemicals and resins businesses.

Financial Position and Shareholder Returns

The company reported a consolidated net worth of Rs 7,660 crore. The Board has recommended a final dividend of 200 per cent, amounting to Rs 62.38 crore, subject to shareholder approval. Total dividend for FY26 stands at 560 per cent, amounting to Rs 174.66 crore.

Outlook

The company stated that it remains focused on value-chain integration, disciplined capital allocation, operational efficiency, and strategic expansion across high-growth segments, supported by a strong balance sheet and diversified business portfolio.

With continued investments in chemicals, consumer businesses, and sustainability-led initiatives, DCM Shriram said it is well positioned to navigate evolving global conditions while pursuing long-term growth opportunities.