DCM Shriram (DCMSHRIRAM) Q4 24/25 earnings summary

Executive summary

• FY25 consolidated revenue rose 11% year-on-year to ₹12,741.32 crore, with PBDIT up 35% to ₹1,472 crore and PAT up 35% to ₹604 crore, driven by growth in chemicals, agri-inputs, and sugar.

• Q4 FY25 net revenue increased 20% year-on-year to ₹2,877 crore, with PBDIT up 47% to ₹426 crore and PAT up 52% to ₹179 crore.

• Major capacity expansions and new projects were commissioned in Chemicals and Sugar & Ethanol, including a 12 TPD compressed biogas plant and a 300 TPD caustic soda flaker plant.

• The company is leveraging a strong balance sheet, maintaining healthy cash flows, and focusing on strategic integration, digitalization, and sustainability.

• A binding agreement was signed to acquire 53% of DNV Global Private Limited, which will become a subsidiary post-approval.

Financial highlights

• Chemicals revenue surged 52% year-on-year in Q4, with caustic soda volumes up 29% and PBDIT up 223% due to higher volumes, better prices, and lower input costs.

• Vinyl business revenue increased 2% year-on-year, with improved PBDIT due to lower power and carbon material costs.

• Sugar and ethanol business net revenue rose 16% year-on-year, with domestic sugar volumes up 19% and PBDIT at ₹252 crore, aided by higher sugar margins.

• Shriram Farm Solutions and bio-seed businesses posted double-digit revenue growth, with SFS launching nine new products and leveraging digital platforms.

• Final dividend of 170% (₹3.40 per share), total dividend for the year at 450% (₹9.00 per share or ₹140.35 crore).

Outlook and guidance

• CapEx for FY26 expected at ₹500-600 crore, with additional opportunities under evaluation.

• ECH plant commissioning in phases, targeting 40-45% average utilization in the first year, ramping to 60-65% by year-end.

• Renewable energy share in power mix to increase to 40% as new projects come online.

• Sugar prices anticipated to remain firm due to lower production and global deficit.

• Continued focus on research-driven products and digital engagement in Agri businesses.