DCM Shriram Ltd, a diversified and integrated conglomerate, reported a 22% year-on-year increase in consolidated net revenue, net of excise duty, to ₹3,977 crore in the second quarter of FY27, ended September 30, 2026. The company recorded revenue of ₹3,272 crore in the corresponding quarter of the previous financial year. Growth across the Chemicals & Vinyl, Sugar & Ethanol, Fenesta Building Systems and Fertilizer businesses supported the increase in revenue.
However, the company’s profit before depreciation, interest, tax and amortisation (PBDIT) declined 22% to ₹319 crore from ₹408 crore in Q2 FY26. Higher input costs in Chemicals and lower earnings from the Agri Input businesses primarily contributed to the decline. Moreover, the previous year’s quarter included one-time benefits of ₹76 crore from a Gujarat government incentive for the Chemicals business and ₹15.5 crore from a revision in power rates in the Sugar business. Consequently, profit after tax (PAT) declined to ₹106 crore from ₹159 crore in the year-ago quarter.
H1 FY27 Revenue Increases 15%
For the first half of FY27, DCM Shriram reported consolidated net revenue of ₹7,541 crore, up 15% from ₹6,534 crore in H1 FY26. PBDIT stood at ₹683 crore, compared with ₹734 crore in the corresponding period last year. Reported PAT rose to ₹799 crore from ₹273 crore. However, this figure included a favourable tax adjustment of ₹474.3 crore and exceptional gains of ₹79.4 crore. Excluding these items, the company reported a normalised PAT of ₹253 crore.
Business-Wise Performance Highlights
Chemicals: Revenue Jumps 47%
The Chemicals business recorded a 47% increase in revenue to ₹1,343 crore, supported by improved electrochemical unit (ECU) realisations and contributions from the advanced materials value chain.
Furthermore, the commissioning of the Aluminium Chloride plant and partial commissioning of the Calcium Chloride plant at Bharuch strengthened the company’s downstream integration capabilities.
Vinyl: Revenue Grows 20%
The Vinyl business reported revenue of ₹234 crore, marking a 20% year-on-year increase. Higher sales volumes and improved realisations supported the business’s profitability during the quarter.
Sugar & Ethanol: PBDIT Rises 85%
Revenue from the Sugar & Ethanol business increased 10% to ₹1,023 crore, while PBDIT rose 85% to ₹62 crore. Higher domestic sugar prices and improved ethanol margins supported performance despite lower sugar sales volumes.
Meanwhile, ethanol sales volumes increased 24% during the quarter, reflecting a timing difference in sales.
Fenesta Building Systems: Revenue Increases 22%
Fenesta Building Systems maintained its growth momentum, recording revenue of ₹344 crore, up 22% year on year. Higher volumes in the Projects vertical drove the increase, while PBDIT rose 15% to ₹49 crore.
In addition, the commissioning of Phase I of the Aluminium Extrusion Plant at Kota marked an important step in Fenesta’s backward integration strategy.
Shriram Farm Solutions: New Product Launches Support Growth Strategy
Shriram Farm Solutions reported revenue of ₹423 crore, compared with ₹471 crore in Q2 FY26, reflecting lower volumes across key product categories.
Nevertheless, the business continued to strengthen its product portfolio. During H1 FY27, it launched eight new products, including five developed through its in-house research and development capabilities.
Fertilizer: Revenue Rises 40%
The Fertilizer business recorded a 40% increase in revenue to ₹502 crore, supported by higher realisations reflecting increased gas prices. PBDIT also grew 25% to ₹25 crore.
Bioseed: Performance Affected by Climatic Conditions
Bioseed reported revenue of ₹73 crore, compared with ₹86 crore in Q2 FY26. Adverse climatic conditions and demand challenges in India and the Philippines affected its performance.
Focus on Resilience and Competitiveness
Ajay Shriram, Chairman and Senior Managing Director, and Vikram Shriram, Vice Chairman and Managing Director, highlighted the changing global economic environment. They noted that artificial intelligence (AI), geopolitical tensions, rising protectionism and shifting global trade partnerships are reshaping supply chains and increasing costs. However, they said India continues to demonstrate resilience, supported by structural reforms, strong domestic demand and a competitive workforce.
The management also highlighted the Chemicals business’s performance amid global volatility and supply-demand imbalances. Healthy capacity utilisation in Chlor-Alkali and stabilisation in Advanced Materials supported operations. In addition, the commissioning of the Aluminium Chloride plant, partial commissioning of the Calcium Chloride plant and completion of a 68 MW-peak renewable energy project marked key milestones in downstream integration and cost competitiveness.
The Sugar & Ethanol business continues to navigate changes in the policy environment. Although domestic sugar prices remain firm amid a projected global deficit, restrictions in recent government tenders on certain sugarcane-based feedstocks have affected the ethanol sector’s investment outlook. The management emphasised the need for a clear roadmap, fair allocations and pricing aligned with sugarcane costs.
Meanwhile, Fenesta sustained its volume-driven growth, while Shriram Farm Solutions managed weather-related demand challenges through its differentiated product portfolio. Bioseed, however, faced significant difficulties in India and the Philippines amid El Niño-related conditions. The company is also advancing its cost-discipline and integration strategy through investments in solar power, caustic debottlenecking and specialty polymer diversification. According to the management, a robust balance sheet, comfortable leverage and ample liquidity provide the company with the flexibility to manage market volatility and pursue growth. Furthermore, DCM Shriram continues to integrate sustainability into its operations by advancing its environmental, social and governance (ESG) roadmap, with a focus on energy transition and resource efficiency.
Strategic Investments and Expansion Plans
DCM Shriram continues to strengthen its integrated business model through investments in advanced materials, downstream chemicals, building materials and renewable energy.
During the quarter, the company achieved several important project milestones, including:
Commissioning of the 100-tonne-per-day Aluminium Chloride plant at Bharuch.
Partial commissioning of the 133-tonne-per-day Calcium Chloride plant at Bharuch.
Commissioning of Phase I of Fenesta’s Aluminium Extrusion Plant at Kota.
Additionally, the company commissioned 68 MW-peak of captive renewable energy capacity for Kota in October 2026, further supporting its energy transition and cost-efficiency objectives.
Upcoming Projects and Investment Timeline
The company outlined the following milestones for its ongoing and planned expansion projects:
Fenesta Aluminium Extrusion Plant, Kota: Phase II is expected to be completed in Q3 FY27.
Calcium Chloride Project, Bharuch: The remaining second line of the 133-tonne-per-day project is expected to be completed in Q3 FY27.
Proposed Salt Works Acquisition: The acquisition of salt works with a total capacity of 208,000 tonnes per annum is expected to be completed in Q3 FY27.
Captive Renewable Energy, Bharuch: A 58 MW-peak renewable energy project, along with related infrastructure under a group captive special-purpose vehicle (SPV) arrangement, is expected to be completed in Q1 FY28.
Solar Renewable Energy Plant, Kota: A 40 MW-peak solar power plant is expected to be completed in Q1 FY28.
Formulated Resins Capacity Expansion, HSCL: An expansion of 36,000 tonnes per annum is expected to be completed in Q2 FY28.
Waste Utilisation, Kota: Installation of filter presses at the cement plant to support waste utilisation is expected to be completed in Q3 FY28.
Specialty Polymer Compounds: Manufacturing lines at the company’s joint venture, Shriram Teknor Limited, are expected to be completed in Q3 FY28.
Caustic Capacity Debottlenecking: Projects to improve energy efficiency at Bharuch and Kota are expected to be completed in Q4 FY28.
Focus on Long-Term Sustainable Growth
As per the press release, through these investments, DCM Shriram aims to improve cost competitiveness, expand downstream integration, strengthen manufacturing capabilities and increase the use of renewable energy. Despite pressure on quarterly profitability, the company’s expansion plans and focus on operational efficiency support its strategy for long-term, sustainable growth.
