MUMBAI — DCM Shriram Limited reported a 33.5% decline in consolidated net profit for the quarter ended September 2026, as higher revenue failed to offset weaker operating margins and a sharp drop in other income.
The diversified Indian conglomerate posted a net profit of Rs 105 crore ($10.5 million approximately) for the second quarter of fiscal 2027, compared with Rs 158 crore during the same period a year earlier, according to a regulatory filing released Monday.
Revenue from operations increased 21.6% to Rs 3,977 crore from Rs 3,271 crore in the corresponding quarter of the previous fiscal year.
Despite the strong revenue growth, the company’s operating profitability weakened. Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 5.7% to Rs 292 crore, compared with Rs 309 crore a year earlier.
The EBITDA margin narrowed to 7.3% from 9.4%, reflecting continued pressure on operating performance.
Other income also fell significantly, declining to Rs 27 crore from Rs 99 crore in the year-earlier quarter.
Tax expenses decreased to Rs 47.8 crore from Rs 87.1 crore, but the reduction was insufficient to prevent a substantial decline in net earnings.
Among its business divisions, Chemicals and Vinyl generated the highest revenue at Rs 1,576.66 crore, up from Rs 1,108.40 crore in the same quarter last year.
The Sugar and Ethanol segment recorded revenue of Rs 1,197.21 crore, while Fenesta Building Systems contributed Rs 344.44 crore.
Shriram Farm Solutions reported revenue of Rs 423.06 crore, and the Fertilizer business generated Rs 501.87 crore during the quarter.
Alongside its financial results, DCM Shriram’s board announced an interim dividend of Rs 4 per equity share for fiscal 2027. The payout represents 200% of the company’s share face value of Rs 2.
The company has set October 30, 2026, as the record date for determining shareholder eligibility for the dividend.
Eligible shareholders will receive the payment within 30 days of the dividend declaration.
The results highlight the challenges facing DCM Shriram as the company seeks to maintain profitability across its diversified operations despite expanding sales. (Source: IANS)
