DCM Shriram Industries Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, demonstrating strong operational performance and successful completion of a major corporate restructuring. The sugar and distillery company reported significant growth in profitability while navigating through various regulatory and operational challenges.

Financial Performance Highlights

The company delivered impressive financial results for the third quarter of FY26, with substantial improvements across key performance indicators.

Nine-Month Performance Shows Exceptional Growth

The nine-month performance for FY26 showcased even more remarkable growth, with the company significantly outperforming the previous year's results.

Major Corporate Restructuring Completed

A significant milestone was achieved during the quarter with the completion of a comprehensive corporate restructuring scheme. The National Company Law Tribunal sanctioned the Composite Scheme of Arrangement on November 21, 2025, which became effective on December 17, 2025.

The restructuring involved two major components:

• Amalgamation of Lily Commercial Private Limited: The company acquired net assets of ₹6,271 lakhs and reserves of ₹5,626 lakhs from Lily, with 50.11% of shares previously held by Lily being cancelled and redistributed to Lily's shareholders

• Demerger of Chemical and Rayon Undertakings: Net assets of ₹15,336 lakhs and ₹22,495 lakhs were transferred to DCM Shriram Fine Chemicals Limited and DCM Shriram International Limited respectively, along with corresponding surplus amounts

Operational and Regulatory Updates

The company operates primarily in the sugar and distillery segment, with business activities falling within a single primary segment. DCM Shriram Industries has maintained its focus on core operations while addressing various regulatory challenges.

Key operational developments include:

• Implementation of new accounting practices from April 1, 2025, discontinuing the deferral of off-season expenditure to align with industry practices • Ongoing legal proceedings regarding VAT and GST chargeability on certain supplies, with adequate provisions maintained • Assessment of new labour codes notified by the Government of India, with no material financial impact expected

Financial Position and Outlook

The company maintained a stable equity share capital of ₹1,740 lakhs throughout all reported periods. The financial results have been reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on February 14, 2026.

The statutory auditors conducted a limited review of the results, which had no impact on the reported figures. As a standalone entity with no subsidiaries, associates, or joint ventures, the company's financial statements reflect its focused business approach in the sugar and distillery sector.

DCM Shriram Industries Limited has communicated comprehensive guidance to its shareholders regarding the apportionment of acquisition costs for equity shares following the successful implementation of its composite scheme of arrangement. The communication, dated February 3, 2026, provides detailed instructions on how shareholders should allocate their original investment costs across the restructured entities.

Scheme Implementation Details

The composite scheme of arrangement was sanctioned by the Hon'ble National Company Law Tribunal, New Delhi Bench, through its order dated November 21, 2025. The scheme became effective on December 17, 2025, and involved two key corporate actions:

• Amalgamation: Lily Commercial Private Limited merged into DCM Shriram Industries Limited
• Demerger: The chemical undertaking and rayon undertaking were separated into DCM Shriram Fine Chemicals Limited and DCM Shriram International Limited respectively

The restructuring was executed on a going concern basis, with share issuance following the provisions of Section 2(19AA) of the Income-tax Act, 1961.

Share Entitlement and Allocation

Under the share entitlement ratio established by the scheme, shareholders whose names appeared in the register of members as on the record date of December 26, 2025, received specific allocations. Each shareholder was issued one equity share each in both resultant companies for every one equity share held in the original demerged company, with all shares having a face value of INR 2 each, fully paid up.

Cost Apportionment Framework

The company has provided specific percentages for shareholders to apportion their total cost of acquisition across the three entities:

These percentages are based on the net book value of assets transferred in relation to the net worth of the demerged company immediately before the demerger, as stipulated under Section 49(2C) of the Income-tax Act.

Practical Application Example

The company has provided a detailed example to illustrate the cost allocation process:

Regulatory Compliance and Tax Implications

The scheme complies with Section 2(19AA) of the Income-tax Act, ensuring that the demerger is not treated as a transfer in shareholders' hands. According to Section 47(vid) of the Act, the equity share issuance by the resultant companies will not be regarded as a transfer. Additionally, under Explanation 1(i)(g) to Section 2(42A) of the Act, the acquisition date for shares in the resultant companies is deemed to be the same as the original acquisition date for the demerged company shares.

The company has emphasized that this communication serves as general guidance only and advises shareholders to consult their own tax advisors for specific implications. The guidance document is available on the company's website at the dedicated scheme section, and shareholders can contact the company at 011 43745075 or through email for additional assistance.