Diversified agri firm DCM Shriram Ltd announced on Thursday (March 12) that its board has approved an equity investment of up to ₹87 crore in one or more tranches for a minimum 26% stake in one or more special purpose vehicles (SPVs) to establish a renewable energy power project for its Bharuch plant. According to reports from CNBC TV18, the board also approved capital expenditure of up to ₹130 crore towards related infrastructure development for the project.
The investment will enable DCM Shriram to obtain around 48 MW of additional renewable power supply for the Bharuch plant, including about 30 MW of round-the-clock power at a 75% capacity utilisation factor. As reported by CNBC TV18, with this addition, the total renewable energy power provision for the Bharuch plant will increase from the present peak of 50.4 MW to 98.4 MW. The equity investment will be made in one or more SPVs that will be created for the renewable power project.
The indicative timeline for completion of the project is around June 2027, according to CNBC TV18 reports. Shares of DCM Shriram Ltd ended at ₹1,018, up by ₹28, or 2.83% on the BSE on March 12, reflecting positive market sentiment towards the renewable energy expansion. The positive market response came despite broader market weakness, with key indices trading lower during the session.
DCM Shriram reported a 19% decline in net profit to ₹212 crore for Q3FY26, compared with ₹262 crore in the same quarter last year, as reported by CNBC TV18. Despite the profit decline, revenue grew 13.8% YoY to ₹4,003 crore from ₹3,519 crore. Operating performance remained robust with EBITDA increasing 7.1% YoY to ₹531.5 crore, though margins narrowed to 13.3% from 14.1% in Q3FY25. The company also declared a second interim dividend of 180%, or ₹3.60 per share for FY26.
