DCM Shriram (DCMSHRIRAM) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 net revenues rose 13% year-on-year to INR 3,811 crores, with PBDIT up 4% and PAT down 19% due to an exceptional INR 55 crores provision for new labor codes; major growth drivers included chemicals, sugar, ethanol, Fenesta, and Shriram Farm Solutions.

• Nine-month FY26 net revenues reached INR 10,345 crores, up 12% year-on-year; PBDIT up 24%, PAT up 14% year-on-year.

• Interim dividend of 180% (INR 56.14 crores) announced, total dividend for the year at 360% (INR 112.28 crores); a second interim dividend of ₹3.60 per share declared, totaling ₹7.20 per share for the year.

• Strategic focus on operational agility, sustainability, and digital transformation to build resilience amid global volatility.

• Statutory auditors issued limited review reports with no material misstatements identified.

Financial highlights

• Q3 FY26: Net revenue INR 3,811 crores, PBDIT INR 560 crores, PAT INR 213 crores after a ₹55 crore exceptional provision.

• Nine-month FY26: Net revenue INR 10,345 crores, PBDIT INR 1,294 crores, PAT INR 485 crores.

• Net debt stood at INR 1,084 crores as of Dec 31, 2025, up from INR 867 crores YoY but down from INR 1,395 crores in March 2025.

• Consolidated Q3 FY26 revenue from operations: ₹4,003.27 crore; nine-month revenue: ₹10,890.88 crore.

• Consolidated Q3 FY26 profit after tax: ₹212.64 crore; nine-month PAT: ₹485.18 crore.

Outlook and guidance

• Major chemical investments nearing completion; optimistic about steady growth and improved profitability from FY27 onward.

• Chemicals business expects volume-led growth from capacity ramp-ups and downstream projects, with price volatility due to global economic and geopolitical factors.

• Sugar & Ethanol margins expected to remain under pressure due to global surplus and cost increases; dependent on government policy support.

• Fenesta margins expected to stabilize around 14% EBITDA as scale and backward integration improve over next two quarters; focus on geographic and product expansion.

• Shriram Farm Solutions to continue product launches and market expansion.