DCM Shriram Q1 revenue rises 12% to ₹3,455 cr, profit up 13% despite ethanol levy hit

DCM Shriram, an integrated conglomerate with businesses across the agri-rural value chain, chemicals, and vinyls, reported consolidated revenues of ₹3,455 crore in Q1 FY26, up 12% year-on-year, while its profit after tax for the quarter rose 13% to ₹114 crore.

The company cited a one-time negative impact of ₹36 crore due to a retrospective levy on ethanol exported outside Uttar Pradesh. Annualised ROCE stood at 13.2%, and net debt remained stable at ₹1,481 crore.

“Global growth is hovering just above recessionary levels. Trade tensions, policy unpredictability, and geopolitical risks are dampening investor confidence, slowing investment, and disrupting supply chains,” said Ajay Shriram, chairman & senior MD, and Vikram Shriram, vice chairman & MD, in a joint statement.

They added that India is consolidating its position as the fastest-growing large economy, recently becoming the fourth largest globally, aided by investment-driven, innovation-focused policies.

On chemicals, the company noted that global caustic soda supply chains remain disrupted due to tariffs and geopolitical tensions, keeping international prices range-bound. DCM Shriram says it has accelerated its push into advanced materials with the proposed acquisition of 100% stake in Hindusthan Specialty Chemicals Ltd.

Its sugar and ethanol business remains stable but under margin pressure. The company said lower-than-expected stock levels should support sugar prices, but termed the retrospective ethanol export levy from 2018 a regressive move. It called for a comprehensive sugar policy overhaul to ensure financial viability for farmers and manufacturers.

The company says Fenesta continues to grow in its core window and door business while expanding its portfolio. The acquisition of a majority stake in a hardware company will help build a stronger growth pipeline.

In Q1 FY26, DCM Shriram acquired 53% of DNV Global to strengthen backwards integration in Fenesta and signed a definitive agreement to acquire 100% of Hindusthan Specialty Chemicals Ltd.

Upcoming milestones include commissioning a 52,000 TPA epichlorohydrin plant, completing a 68 MW renewable energy JV with JSW Renewables for the Kota complex, and setting up an aluminium extrusion facility by FY26.

DCM Shriram shares closed ₹1,382.00, down 1.86%, on the NSE today.