DCM Shriram reported a sharp jump in consolidated net profit to ₹371 crore in the March quarter from ₹179 crore a year earlier, but operating margin narrowed as PBDIT fell slightly and the profit surge was aided by a one-time deferred tax credit.

The company’s consolidated net revenue rose 11.7% year-on-year to ₹3,373 crore in Q4 FY26 from ₹3,019 crore, while PBDIT slipped 1.3% to ₹400 crore from ₹405.23 crore. As a result, PBDIT margin fell to 10.47% from 13.42% in the year-ago quarter.

For the full year, consolidated net revenue increased 12% to ₹14,264 crore, PBDIT rose 15% to ₹1,694 crore, and PAT climbed 42% to ₹856 crore. The company said the reported PAT includes a one-time deferred tax credit of ₹239 crore, linked to its decision to opt for the new tax regime under section 115BAA of the Income Tax Act, effective FY27.

“Financial Year 2025–26 saw global organizations and governments being stress tested by persistent uncertainties. Rising trade protectionism, supply chain realignments and the escalation of conflict in West Asia continued to impact commodity markets, logistics corridors and capital flows,” the company said in its release.

Despite the pressure, DCM Shriram said its chemicals business delivered strong volume growth, supported by ramp-up of expansion projects and downstream integration over the last two years. It also highlighted the full commissioning of its Epichlorohydrin facility in April 2026 and the expansion of its epoxy and formulated resins business.

“Our Chemicals business recorded strong volume growth, driven by progressive ramp-up of expansion and downstream integration completed over last two years,” the company said, adding that the ECH plant is witnessing “encouraging market acceptance.”

The company also pointed to growth in its consumer businesses. Fenesta Building Systems reported revenue of ₹1,112 crore, up 28%, while Shriram Farm Solutions grew 18% to ₹1,689 crore.

“Our consumer businesses, Fenesta Building Systems & Shriram Farm Solutions continued to grow at a healthy pace while consolidating their market position and reaching new milestones,” the company said.

The board recommended a final dividend of 200%, taking total dividend for FY26 to 560%.