DCM Shriram Q2 FY27 results: net profit down 33.4% to ₹105.68 crore, revenue up 20.9%

How did DCM Shriram perform in Q2 FY27?

DCM Shriram’s consolidated revenue for Q2 FY27 was ₹4,151 crore, compared with ₹3,432 crore in Q2 FY26 and ₹3,785 crore in Q1 FY27. EBITDA was ₹291.35 crore, down from ₹309.10 crore a year earlier and ₹336.56 crore in the previous quarter. The EBITDA margin declined 2.0 percentage points year on year to 7.0% and 1.9 percentage points sequentially from 8.9%.

Profit before tax was ₹152.40 crore, down from ₹245.86 crore in Q2 FY26 and ₹274.15 crore in Q1 FY27. Net profit was ₹105.68 crore, against ₹158.72 crore a year earlier and ₹693.44 crore in the previous quarter. Basic EPS was ₹6.72, compared with ₹10.14 in Q2 FY26 and ₹44.72 in Q1 FY27. On a standalone basis, revenue was ₹4,064.29 crore and profit after tax was ₹144.35 crore, with revenue up 20.3% and profit before tax of ₹168.47 crore.

What changed in DCM Shriram's costs and profit?

Total expenses increased 22.5% year on year to ₹4,026 crore. Cost of materials was ₹1,344 crore, up 40.7% from ₹955 crore, while other expenses rose 23.7% to ₹1,305 crore from ₹1,055 crore. Employee cost increased 10.1% to ₹337.54 crore and depreciation rose 10.1% to ₹130.96 crore. Finance costs declined 17.7% to ₹35.46 crore from ₹43.07 crore.

Other income fell 72.2% year on year to ₹27.47 crore from ₹98.83 crore. There was no exceptional item in Q2 FY27, compared with a gain of ₹79.42 crore in Q1 FY27. Tax expense declined 45.1% to ₹47.80 crore from ₹87.14 crore in Q2 FY26, but remained higher than the previous quarter’s tax expense of ₹418.02 crore. The company’s presentation said higher input prices reduced Chemicals margins.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹7,935.46 crore, up 15.2% from ₹6,887.61 crore in H1 FY26. Total income rose 14.0% to ₹7,990.55 crore from ₹7,008.66 crore, while profit before tax increased 2.5% to ₹426.55 crore from ₹416.02 crore.

H1 FY27 net profit was ₹799.12 crore, compared with ₹272.54 crore in H1 FY26, an increase of 193.2%. Basic EPS rose 167.1% to ₹46.50 from ₹17.41. The H1 FY27 results therefore showed higher revenue and profit, although the second quarter alone reported lower year-on-year profit.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹14,327.76 crore, compared with ₹14,136.75 crore at 31 March 2026. Total equity was ₹8,467.68 crore against ₹7,732.83 crore at the previous balance-sheet date. Borrowings fell to ₹1,892.57 crore from ₹2,812.49 crore, while cash declined to ₹218.22 crore from ₹306.19 crore. Inventories were ₹2,635.96 crore, trade receivables ₹1,535.40 crore and trade payables ₹1,668.38 crore.

Operating cash flow for H1 FY27 was ₹985.50 crore, compared with ₹1,524.25 crore in H1 FY26. Investing cash flow was negative ₹243.86 crore against negative ₹470.19 crore, while financing cash flow was negative ₹829.61 crore against negative ₹842.22 crore. Capital expenditure was ₹339.57 crore, compared with ₹352.07 crore in the year-ago period.

How has DCM Shriram done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters, according to the reported trend data. It reached its highest level in the series at ₹4,150.79 crore in Q2 FY27, compared with the low of ₹3,019.32 crore in Q4 FY25. The latest quarter therefore extended the revenue progression, although profitability moved in the opposite direction.

EBITDA margin peaked at 14.1% in Q3 FY25 and bottomed at 7.0% in Q2 FY27. Net profit peaked at ₹693.44 crore in Q1 FY27 before falling to ₹105.68 crore in Q2 FY27, the lowest level in the reported series at ₹113.82 crore in Q1 FY26 being exceeded only in Q2 FY27? No—the Q2 FY27 figure was lower than the Q1 FY26 figure.

Which businesses drove the quarter?

Chemicals and Vinyl reported revenue of ₹1,576.66 crore, up 42.2% from ₹1,108.40 crore, with EBIT of ₹133.68 crore compared with ₹200.71 crore and an EBIT margin of 8.5%. Sugar and Ethanol revenue was ₹1,197.21 crore, up 9.5% from ₹1,093.71 crore, while EBIT rose to ₹30.04 crore from ₹2.28 crore, with an EBIT margin of 2.5%. Fenesta Building Systems recorded revenue of ₹344.44 crore, up 21.6% from ₹283.27 crore, and EBIT of ₹39.56 crore against ₹34.72 crore; its EBIT margin was 11.5%.

Shriram Farm Solutions reported revenue of ₹423.06 crore, down 10.2% from ₹471.02 crore, with EBIT of ₹76.20 crore against ₹104.53 crore and an EBIT margin of 18.0%. Fertiliser revenue was ₹501.87 crore, up 40.4% from ₹357.42 crore, while EBIT was ₹21.37 crore compared with ₹16.80 crore and the EBIT margin was 4.3%. Bioseed revenue fell 14.8% to ₹73.36 crore and EBIT was a loss of ₹42.98 crore, compared with a loss of ₹8.66 crore; its EBIT margin was negative 58.6%. Others recorded revenue of ₹61.65 crore and an EBIT loss of ₹7.69 crore.

What else did the company announce?

The board approved the Q2 FY27 and H1 FY27 unaudited standalone and consolidated results on 26 October 2026. It declared an interim dividend for FY27 at 200%, or ₹4 per equity share of face value ₹2, with a record date of 30 October 2026 and payment to eligible shareholders within 30 days. The board also approved Salil Vishwanath as LIC nominee director effective from 1 November 2026 or from DIN allotment, whichever is later, replacing Rabinarayan Mishra, subject to shareholder approval.

The board approved an equity contribution of up to ₹50 crore to Shriram Teknor Limited towards capital investment of up to ₹133 crore for speciality PVC, medical-grade and halogen-free flame-retardant products. It also approved capital expenditure of up to ₹60 crore for Filter Presses at the Kota Cement Plant, up to ₹145 crore for a Kota solar power plant serving up to 8 MW of Vinyl Plant power requirements, and up to ₹120 crore for one additional electrolyser each at the Kota and Bharuch caustic plants.

What did DCM Shriram's management say?

Management said the Chemicals business faced margin compression because costs rose 6–8% against price erosion of 4–6%. It said the Aluminium Chloride plant, part of the Calcium Chloride plant and the 68 MW renewable power project had been commissioned. Management said domestic PVC demand was expected to improve after the monsoon in Q3–Q4 FY27, with production running at 100% or slightly more of capacity, while caustic prices were expected to remain range-bound.

Management said the demerger would be taken to the board “very soon” and completion was targeted for Q1 FY28. It said around one-third of the total power requirement was targeted from renewables within the next year. The company said captive chlorine consumption after commissioning was expected at approximately 45% at Baruch and approximately 62% at Kota, with approximately 70% of chlorine capacity integrated with captive use and pipeline customers. Management also identified higher input and energy costs, weak monsoon and El Niño pressure on agri-inputs, lower Bioseed volumes, provisions, sugar-cane availability and subsidy receivables as risks.

Chairman and Senior Managing Director Ajay Shriram said: “For us at DCM Shriram, this environment reinforces the value of staying close to what we can control: integrated operations, cost discipline, working capital management, digital execution, and calibrated capital allocation.” The finance presenter said: “We generally avoid giving forward-looking statements. ... We invested close to about four thousand five hundred crores, and the pipeline is still there. ... But giving the exact number is a little difficult at this stage.”

How did DCM Shriram shares react?

The stock initially traded higher after the filing, rising 1.0% after five minutes, 0.5% after 15 minutes and 2.3% after 30 minutes. On the reaction day, it fell 6.3% from the pre-results close. By the next day’s close, the stock was down 6.6% from the pre-results close, and by the fifth session it was down 7.9%.

The Diversified industry median moved down 0.1% on the reaction day, up 1.0% by the next day and up 1.2% by five sessions. DCM Shriram therefore underperformed the industry median by 6.2 percentage points on the reaction day, 7.6 percentage points by the next day and 9.1 percentage points by five sessions. Earlier results-day moves included a 4.1% fall on 13 May 2026, a 3.2% rise on 28 October 2025 and a 2.3% fall on 5 May 2025.