DCM Shriram Consolidated has entered into a definitive agreement with Serentica Renewables India 38 Private Limited to acquire a 26% equity stake for Rs 104.4 crore. This strategic investment will secure approximately 58 MW of renewable power, including 36 MW of round-the-clock supply, for the company's Bharuch plant. Upon completion, DCM Shriram Limited's total renewable energy capacity will rise to 176 MW (peak) across its facilities in Bharuch and Kota, significantly expanding its clean energy base and supporting sustainability goals.

The Board of Directors had previously approved a total equity investment of up to Rs 105 crore for this purpose. The acquisition will be funded through cash consideration in one or more tranches. The target entity, incorporated on January 1, 2026, operates in the renewable energy sector and is developing a hybrid power project to supply energy to DCM Shriram Chemicals. The transaction is not a related party transaction and is being conducted at arm's length. The company anticipates the acquisition will be completed by June 30, 2027.

Key Transaction Details

Mr. Sabaleel Nandy, Executive Director & CEO of DCM Shriram Chemicals, stated that the agreement expands the share of renewable energy across chemical operations in Bharuch. He noted that the project is expected to help avoid nearly 0.4 million tonnes of CO2 emissions annually while improving cost efficiency and providing visibility into long-term power costs.

Serentica Renewables will supply the power through a 190 MW renewable energy project comprising solar power from Rajasthan and wind power from Karnataka. Mr. Akshay Hiranandani, CEO of Serentica Renewables, described the partnership as a significant step in advancing India's industrial decarbonization journey by enabling reliable and sustainable energy for DCM Shriram's operations.

DCM Shriram Limited has secured a significant relief from the Income-tax Appellate Tribunal (ITAT), New Delhi, regarding a material tax litigation for Assessment Year (AY) 2022-23. The order, dated July 3, 2026, substantially reduces the tax effect of additions made by the Assessing Officer (AO) and directs the deletion of the earlier tax demand of Rs. 249.27 crore. This development alleviates a major financial liability that had arisen from the AO's order dated October 31, 2025.

The ITAT's intervention addresses the tax demand raised under sections 143(3) read with 144C(13) of the Income-tax Act. The tribunal granted relief on the majority of the disputed tax additions, referring only a marginal portion back to the AO for reconsideration. The following table details the financial impact of the tribunal's order:

In addition to the relief on specific additions, the ITAT directed the AO to correct computational errors, specifically regarding the grant of correct set-off of brought forward MAT Credit. The original demand of Rs. 249.27 crore, which was stayed by the ITAT on February 13, 2026, will now be deleted following the tribunal's directions.

DCM Shriram stated that it will file an application before the AO to pass an order giving effect to the ITAT's directions. This step is necessary to formally remove the demand and adjust the tax records accordingly. The company received the notice of the order on July 3, 2026, and brought it to the attention of the designated undersigned on July 4, 2026.

The disclosure was made to the stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The resolution of this litigation marks a positive outcome for the company, removing a substantial contingent liability from its books for the financial year 2021-22.