DCM Shriram Consolidated Limited has informed stock exchanges of the cessation of two of its Independent Directors upon completion of their second term. Mr. Pravesh Sharma (DIN: 02252345) and Justice (Retd.) Vikramajit Sen (DIN: 00866743) completed their second term as Independent Directors of the Company on 8th August 2026, and shall cease to hold their positions effective 9th August 2026. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Cessation of Independent Directors

With the conclusion of their second term, both directors will also relinquish their positions as Member or Chairman of the various Committees of the Board where they currently hold such roles. The key details of the cessation, as disclosed under the applicable regulatory framework, are summarised below:

Board's Acknowledgement

The Board of DCM Shriram Limited placed on record its deep appreciation and sincere thanks to Mr. Pravesh Sharma and Justice (Retd.) Vikramajit Sen for the valuable advice and guidance provided to the Company during their tenure as Independent Directors.

Regulatory Compliance

The requisite disclosure has been made in accordance with Regulation 30 of the Listing Regulations, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated 30th January 2026. The intimation was signed by Deepak Gupta, Company Secretary and Compliance Officer of DCM Shriram Limited, and the information has also been hosted on the Company's website.

DCM Shriram Limited reported a consolidated net profit after tax (PAT) of ₹692.17 crore for the quarter ended June 30, 2026, marking a 509% year-on-year increase from ₹113.82 crore in Q1FY26. This significant headline growth was primarily driven by non-operational factors, specifically a favorable tax adjustment of ₹474.3 crore related to claims under Section 80-IA of the Income Tax Act, 1961, and one-time exceptional items totaling ₹79.42 crore from land sales and joint venture stake sales. Excluding these one-off benefits, the company’s effective normal PAT stood at approximately ₹147 crore, representing a 28% increase over the prior year’s normalized base. Consolidated total income rose 9.6% to ₹3,812.29 crore, reflecting resilient performance across its diversified business verticals despite global geopolitical uncertainties.

The Board of Directors approved the unaudited financial results on July 28, 2026. Profit before tax (PBT) after exceptional items increased 61% to ₹274.15 crore from ₹170.16 crore in the corresponding quarter of the previous year. The company’s net debt stood at ₹1,649 crore as on June 30, 2026, an increase from ₹1,481 crore as on June 30, 2025, attributed to acquisitions worth approximately ₹450 crore and capital expenditure of around ₹1,000 crore. The Statutory Auditors carried out a Limited Review of the results, which were filed with stock exchanges under Regulation 33 and 52 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Segment Performance

The Chemicals & Vinyl business emerged as the primary growth driver, with revenues surging 33% to ₹1,392 crore and PBDIT rising 24% to ₹274 crore. This growth was fueled by higher realizations in caustic soda, where ECU prices rose 7% year-on-year, and strong contributions from advanced materials like epoxy resins. The Vinyl segment posted improved margins, with PBDIT more than doubling to ₹43 crore despite an 11% decline in revenue due to lower PVC volumes. Capacity utilization in Vinyl stood at 100%.

The Sugar & Ethanol business reported a PBDIT of ₹22 crore compared to a loss of ₹7 crore in Q1FY26, showing a significant improvement. This was driven by better ethanol margins due to lower maize input costs, which offset higher sugar production costs. Domestic sugar volumes declined 8%, but realizations improved by 2%. Fenesta Building Systems delivered volume-driven growth, with revenues up 22% to ₹303 crore, supported by its project vertical and new product platforms.

What the Numbers Show

A critical observation from the filing is the divergence between top-line operational growth and bottom-line profitability. While profit before exceptional items grew 14% to ₹194.73 crore, the headline PAT figure is distorted by massive one-time tax benefits. The favorable judgement from the Income Tax Appellate Tribunal on July 3, 2026, allowed the company to reverse tax provisions of ₹98.05 crore and recognize deferred tax assets related to MAT credit of ₹376.25 crore for FYs 2020-21 to 2025-26. Investors should focus on the consistent margin expansion in Chemicals and the structural turnaround in Sugar & Ethanol rather than the headline PAT surge. Additionally, the company sold a 50% equity stake in Shriram Polytech Limited to Teknor Apex B.V. on April 16, 2026, recognizing a gain of ₹11.74 crore, marking a strategic shift in its advanced materials portfolio.