DCM Shriram Reports Lower Q2 Net Profit Despite Higher Revenue

DCM Shriram Limited reported a fall in its second-quarter net profit for financial year 2026-27, even though its revenue from operations expanded during the quarter. The results were announced on Monday.

Consolidated net profit stood at Rs 105 crore, down 33.5 per cent from Rs 158 crore recorded in the corresponding quarter of the previous year. Revenue from operations, however, rose 21.6 per cent to Rs 3,977 crore from Rs 3,271 crore.

The company stated in its exchange filing that the rise in sales did not translate into better profitability, citing continued pressure on operating performance.

Profitability indicators weaken

EBITDA declined 5.7 per cent year-on-year to Rs 292 crore, against Rs 309 crore in the same quarter last year. The EBITDA margin fell to 7.3 per cent from 9.4 per cent.

Other income saw a steep decline, falling to Rs 27 crore from Rs 99 crore a year earlier. Tax expenses decreased to Rs 47.8 crore from Rs 87.1 crore. Even with lower taxes, the company's net profit still registered a drop.

Revenue by business

The chemicals and vinyl segment was the largest contributor to revenue, generating Rs 1,576.66 crore in the quarter compared with Rs 1,108.40 crore in the year-ago period. The sugar and ethanol business earned Rs 1,197.21 crore, while Fenesta Building Systems posted Rs 344.44 crore.

Shriram Farm Solutions reported Rs 423.06 crore in revenue. The fertiliser business contributed Rs 501.87 crore during the quarter.

Dividend declared

Along with the quarterly numbers, the board announced an interim dividend of Rs 4 per equity share with a face value of Rs 2 for FY 2026-27. The dividend equals 200 per cent of face value. The record date for determining eligible shareholders has been fixed at October 30, 2026, and the payment will be made within 30 days of the declaration.