DCM Shriram (DCMSHRIRAM) Q4 25/26 earnings summary

Executive summary

• FY 2026 delivered robust revenue growth of 12% year-over-year, reaching INR 13,538 crores, led by Chemicals, Fenesta Building Systems, and Shriram Farm Solutions, while Sugar and Ethanol faced margin pressure from higher cane costs and oversupply.

• Chemicals business saw strong volume growth from recent expansions and integration, with advanced materials segment expanding and ECH plant fully commissioned in April 2026.

• Consumer businesses (Fenesta, Shriram Farm Solutions) grew steadily, consolidating market positions and launching new products.

• Strategic focus on value chain integration, operational efficiency, digital transformation, and disciplined capital allocation supported resilience amid global volatility.

• Sustainability initiatives advanced, including a pledge to reduce Scope 1 and 2 emissions by 40% by 2040 and raising funds via sustainability-linked debentures from IFC.

Financial highlights

• FY 2026 consolidated revenue from operations was Rs. 14,263.91 crores, up from Rs. 12,741.32 crores in FY25; net revenue rose 12% YoY to Rs. 13,538 crores.

• FY 2026 PBDIT increased 15% to INR 1,694 crores; consolidated EBITDA was Rs. 1,693.67 crores.

• PAT for FY26 was Rs. 855.98 crores, up 42% YoY; EPS at Rs. 54.73 after exceptional items.

• Q4 FY26 net revenue was Rs. 3,193 crores, up 11% YoY; PBDIT was INR 400 crores, down from INR 426 crores last year.

• Final dividend recommended at 200% (Rs. 62.38 crores), total dividend for FY26 at 560% (Rs. 176.66 crores or Rs. 11.20 per share).

Outlook and guidance

• Management expects robust capacity utilization in chemicals, steady ramp-up in new product lines, and ECH plant running at 60-70% utilization with breakeven expected this year.

• CapEx for FY27 projected at INR 1,000-1,200 crores, with major expansions in renewable power and formulated resins.

• Sugar and ethanol margins expected to remain under pressure due to global surplus and rising cane prices; policy support remains critical.

• Fenesta to continue growth via geographic expansion and new product platforms; Shriram Farm Solutions to focus on product diversification and partnerships.