DCM Shriram (DCMSHRIRAM) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 net revenue rose 11% year-on-year to INR 3,272 crore, with EBITDA up 74% to INR 408 crore and PAT up 152% to INR 159 crore, driven by Chemicals, Vinyl, Fenesta, and Shriram Farm Solutions.

• H1 FY26 revenue increased 12% year-on-year to INR 6,534 crore, with PBDIT up 44% to INR 734 crore and PAT up 67% to INR 273 crore.

• Strategic focus on integration, sustainability, and value chain expansion through new projects, capacity expansions, and acquisitions, including Hindusthan Specialty Chemicals.

• Interim dividend of 180% (INR 56.14 crore) declared.

• Commissioning of a 35,000 TPA Epichlorohydrin (ECH) plant at Bharuch/Jhagadia, Gujarat, with additional capacity to be added soon.

Financial highlights

• Q2 FY26: Revenue INR 3,272 crore (+11% YoY), PBDIT INR 408 crore (+74% YoY), PAT INR 159 crore (+152% YoY), ROCE 15%.

• H1 FY26: Revenue INR 6,534 crore (+12% YoY), PBDIT INR 734 crore (+44% YoY), PAT INR 273 crore (+67% YoY).

• Net debt at INR 773 crore as of September 30, 2025.

• Earnings per share for H1 FY26 at INR 17.41.

• Interim dividend of 180% (INR 56.14 crore) announced.

Outlook and guidance

• Optimism for stable growth as chemical segment investments near completion and cash flows remain robust.

• Chemicals & Vinyl expect continued volume-driven growth with new capacity ramp-up and acquisitions, though caustic prices may remain volatile.

• Sugar & Ethanol anticipate stable domestic prices and expect sugar exports to be allowed; ethanol blending target of 20% is on track, reaching 19.17% as of September 2025.

• Fenesta to focus on geographic and product expansion; Shriram Farm Solutions to accelerate market expansion and product launches.

• Chlorine integration expected to reach 75% in coming quarters, reducing exposure to negative pricing.