Diversified agri firm DCM Shriram Ltd reported mixed quarterly results for Q2 FY27, with net profit declining 35% year-on-year to ₹105 crore compared with ₹158 crore in the corresponding quarter last year. According to latest reports, revenue from operations rose 21.6% year-on-year to ₹3,977 crore from ₹3,271 crore in the previous year. However, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) declined 5.7% to ₹292 crore from ₹309 crore a year earlier, with the EBITDA margin contracting to 7.3% from 9.4% in the corresponding quarter last year. The latest data confirms that Q2 revenue grew 21.6% but PBDIT and PAT fell due to input costs and segment pressures weighing on performance.
The company declared an interim dividend of ₹4 per equity share of face value ₹2 each for the financial year 2026-27, equivalent to 200% of the face value. As reported by CNBC TV18, the record date for the dividend is October 30, 2026, and the dividend will be paid to eligible shareholders within 30 days of its declaration. The board also approved significant capital expenditure initiatives, including ₹60 crore for installing filter presses at its cement plant in Kota to mitigate losses and provide operational flexibility, and ₹145 crore for a solar power plant at the Kota complex to meet power requirements of up to 8 MW at lower costs than grid electricity.
The company's segment disclosures show that Chemicals and Vinyl generated revenue of ₹1,576.66 crore in Q2 FY27, compared with ₹1,108.40 crore a year earlier, leading the revenue growth across all segments. Sugar and Ethanol contributed ₹1,197.21 crore, while Fenesta Building Systems reported revenue of ₹344.44 crore. Shriram Farm Solutions recorded revenue of ₹423.06 crore, and Fertiliser revenue stood at ₹501.87 crore. Despite the revenue growth across most segments, the decline in EBITDA and margin highlights the pressure on earnings during the quarter, with the interim dividend providing a shareholder payout even as profitability weakened year-on-year.
During the quarter, the company commissioned a 15,000-metric-tonne main aluminium extrusion plant at its Fenesta Building System unit in Kota on September 1, with the associated surface finish plant still being installed and commissioned. The company also commissioned a 100-tonne-per-day aluminium chloride plant and a 133-tonne-per-day calcium chloride plant at its chemicals complex in Jhagadia, Bharuch district, Gujarat, on September 30. The aluminium chloride commissioning raised capacity at the Bharuch complex to 250 tonnes per day, with the remaining 133 tonnes per day of calcium chloride capacity expected to be commissioned in the third quarter of FY27.
As reported by CNBC TV18, DCM Shriram shares closed at ₹972 on October 26, up 0.78%, or ₹7.50, on the NSE following the results announcement. The mixed performance with revenue growth offset by margin contraction and profit decline reflects the company's ongoing strategic investments in capacity expansion and operational efficiency improvements across its diversified business portfolio. Despite the weakened operating performance, the company's ability to maintain dividend payments demonstrates confidence in its long-term cash generation capabilities and commitment to shareholder returns.
