DCM Shriram Ltd, a diversified and integrated conglomerate, reported a 22% year-on-year increase in consolidated net revenue for the second quarter of FY27, even as higher input costs and weaker earnings in agri-input businesses dragged down profitability.
The company posted consolidated net revenue, net of excise duty, of Rs 3,977 crore for the quarter ended September 30, 2026, compared with Rs 3,272 crore in the corresponding quarter last year. Growth was driven by Chemicals & Vinyl, Sugar & Ethanol, Fenesta Building Systems and Fertilizer.
However, profitability came under pressure. Profit before depreciation, interest and tax (PBDIT) fell 22% to Rs 319 crore from Rs 408 crore a year earlier, primarily due to higher input costs in Chemicals and lower earnings in the agri-input businesses.
The year-ago quarter had also benefited from one-time gains, including Rs 76 crore in incentives from the Gujarat government for the Chemicals business and Rs 15.5 crore in the Sugar business following an upward revision in power rates.
Profit after tax (PAT) declined to Rs 106 crore from Rs 159 crore in Q2 FY26.
For the first half of FY27, DCM Shriram's consolidated net revenue rose 15% to Rs 7,541 crore from Rs 6,534 crore in the corresponding period last year.
PBDIT stood at Rs 683 crore, compared with Rs 734 crore in H1 FY26.
Reported PAT surged to Rs 799 crore from Rs 273 crore a year earlier, aided by a favourable tax adjustment of Rs 474.3 crore and exceptional gains of Rs 79.4 crore. Excluding these impacts, normal PAT stood at Rs 253 crore.
The Chemicals business emerged as a key growth driver, with revenue climbing 47% to Rs 1,343 crore, supported by improved ECU realisations and contributions from the advanced materials value chain.
The company strengthened its downstream integration with the commissioning of its Aluminium Chloride plant and partial commissioning of the Calcium Chloride plant at Bharuch.
Vinyl revenue increased 20% to Rs 234 crore, with higher volumes and improved realisations supporting profitability.
Sugar & Ethanol revenue grew 10% to Rs 1,023 crore, while PBDIT surged 85% to Rs 62 crore. Higher domestic sugar prices and improved ethanol margins supported earnings despite lower sugar sales volumes. Ethanol sales volumes rose 24% during the quarter, reflecting a timing difference.
Fenesta Building Systems sustained its growth momentum, with revenue rising 22% to Rs 344 crore, driven by higher volumes in the Projects vertical. PBDIT increased 15% to Rs 49 crore.
The commissioning of Phase I of its Aluminium Extrusion Plant at Kota marked a key milestone in the company's backward integration strategy.
The Fertilizer business reported a 40% increase in revenue to Rs 502 crore, supported by higher realisations reflecting elevated gas prices. PBDIT grew 25% to Rs 25 crore.
Shriram Farm Solutions reported revenue of Rs 423 crore, down from Rs 471 crore a year earlier, as lower volumes across key categories weighed on performance. The business launched eight new products during H1 FY27, including five developed through its own research and development capabilities.
Bioseed revenue declined to Rs 73 crore from Rs 86 crore in Q2 FY26, with adverse climatic conditions and demand challenges in India and the Philippines affecting performance.
Commenting on the company's performance, Ajay Shriram, Chairman & Senior Managing Director, and Vikram Shriram, Vice Chairman & Managing Director, said in a joint statement: “Today’s global economy is being rewritten by two converging forces: the transformative power of AI and the rapid realignment of global trade partnerships.
"Heightened geopolitical friction, rising protectionism, and US-led tariff structures are straining global supply chains and inflating costs worldwide. India stands as a resilient outlier—fortified by structural reforms, strong domestic demand and competitive workforce. Despite our formidable macroeconomic fundamentals, India remains distinctly behind major global powers in developing sovereign AI and indigenous technological architecture."
They added: “The Chemicals business delivered reasonable performance despite a volatile global environment and supply-demand imbalances. Chlor-alkali witnessed healthy utilization, while Advanced Materials is stabilizing. Crucially, downstream integration and cost-competitiveness initiatives reached key milestones with the commissioning of the Aluminium Chloride plant, partial commissioning of the Calcium Chloride plant, and commissioning of the 68 MW (peak) renewable power project.
“The Sugar and Ethanol businesses are navigating a shifting landscape. While domestic sugar prices remain firm amidst a projected global deficit, the sector’s investments in ethanol are significantly impacted by recent government tenders restricting certain sugarcane-based feedstocks. A clear roadmap, fair allocations, and pricing alignment with sugarcane costs remain critical to the sector’s long-term viability.
“Our consumer-facing businesses demonstrated resilience amidst market and climatic volatility. Fenesta Building Systems sustained its volume-driven growth momentum and commissioned phase one of its Aluminium Extrusion Plant. Meanwhile, Shriram Farm Solutions navigated one of the weakest monsoons in a decade, leaning on a differentiated product portfolio to offset weather-driven demand challenges. However, Bioseed business faced significant performance challenges in India as well as Philippines on account of El-Nino.
“We are actively translating our strategy of cost discipline and integration into action through new project announcements, including solar expansion, caustic debottlenecking, and specialty polymer diversification. With interest rates remaining elevated, our robust balance sheet, comfortable leverage, and ample liquidity position us well to absorb market volatility and pursue continued growth."
The management said the company is advancing its cost discipline and integration strategy through planned projects covering solar expansion, caustic debottlenecking and specialty polymer diversification.
It also highlighted its balance sheet strength, comfortable leverage and ample liquidity as key buffers against market volatility, while reaffirming its focus on sustainability, energy transition and resource efficiency.
With revenue growth across several businesses offset by pressure on quarterly earnings, DCM Shriram's performance underscores the challenge of converting stronger sales into higher profitability amid volatile input costs, shifting policy dynamics and uneven demand across business segments.
