DCM Shriram (DCMSHRIRAM) Q2 26/27 earnings summary

Executive summary

• Q2 net revenue, net of excise duty, rose 22% YoY to ₹3,977 crore; consolidated revenue from operations was ₹4,150.79 crore.

• Q2 consolidated EBITDA was ₹318.82 crore versus ₹407.93 crore, and net profit after JV share was ₹105.68 crore versus ₹158.72 crore.

• H1 consolidated revenue from operations was ₹7,935.46 crore and EBITDA ₹683 crore; net profit of ₹799.12 crore included tax adjustments and exceptional gains.

• Higher chemical input costs and weaker Farm Solutions and Bioseed results weighed on Q2 earnings.

Financial highlights

• Q2 consolidated PBT was ₹152.4 crore versus ₹245.9 crore; consolidated operating margin was 7.35% versus 9.50% YoY.

• H1 consolidated PBT before exceptional items was ₹347.1 crore versus ₹416 crore; effective normal PAT was ₹253 crore after tax adjustments and one-time gains.

• Q2 net debt was ₹917 crore versus ₹773 crore; ROCE was 12.2% versus 15.0% a year earlier.

• H1 consolidated operating cash flow was ₹985.50 crore; investing and financing cash outflows were ₹243.86 crore and ₹829.61 crore.

Outlook and guidance

• PVC and carbide demand may rebound after monsoon withdrawal; the minimum import price introduced in July 2026 is expected to support domestic PVC prices.

• Vinyl margins remain exposed to PVC pricing and energy costs; holding current prices could reduce margins, while higher prices could support them.

• A demerger proposal is targeted for Board consideration soon, with Q1 FY28 identified as the target timeline; interlinked businesses remain under review.

• Renewable power is targeted to reach one-third of total power needs next year; no specific turnover target was given.

• Sugar crushing was expected to start in the first week of November; output and recovery depend on cane availability, crop conditions and winter weather.