DCM Shriram Consolidated , a diversified conglomerate, has reported a robust financial performance for the second quarter of fiscal year 2025-26, with a significant surge in profitability and strong revenue growth.

Financial Highlights

For the quarter ended September 30, 2025, DCM Shriram Consolidated posted the following results:

The company's consolidated net profit more than doubled to ₹158.00 crore in Q2 FY2025-26, compared to ₹63.00 crore in the same period last year, marking a substantial 151.00% year-on-year increase.

Revenue from operations grew by 10.60% to ₹3,271.00 crore, up from ₹2,957.00 crore in the corresponding quarter of the previous fiscal year.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant improvement, rising by 70.80% to ₹308.00 crore from ₹180.70 crore year-on-year. This resulted in an enhanced operating margin of 9.40%, up from 6.10% in the same quarter last year.

Interim Dividend Declaration

The Board of Directors has declared an interim dividend of 180% or ₹3.60 per equity share for the financial year 2025-26. The record date for this dividend has been set for November 3, 2025.

Segment Performance

The company's financial results indicate strong performances across various business segments:

1. Chemicals and Vinyl: This segment reported revenue of ₹1,108.40 crore for the quarter, with a profit of ₹200.71 crore.
2. Sugar and Ethanol: The segment generated revenue of ₹1,093.71 crore, though it faced some challenges with a modest profit of ₹2.28 crore.
3. Fenesta Building Systems: This division showed growth with revenue of ₹283.27 crore and a profit of ₹34.72 crore.
4. Shriram Farm Solutions: The segment performed exceptionally well with revenue of ₹471.02 crore and a profit of ₹104.53 crore.

Strategic Developments

DCM Shriram Consolidated has made significant strides in expanding its operations:

1. The company commissioned a 35,000 TPA Epichlorohydrin (ECH) Plant at its chemical complex in Jhagadia, Gujarat, on October 14, 2025. An additional 17,000 TPA capacity is expected to be commissioned shortly.
2. The acquisition of Hindusthan Speciality Chemicals Limited was completed on August 26, 2025, strengthening DCM Shriram Consolidated's position in the specialty chemicals sector.
3. The company has announced plans to acquire four salt manufacturing entities with a combined salt lease land of 1,077 acres in Gujarat, aiming to backward integrate its chemical business.

Market Response

The company's shares closed at ₹1,305.60 on the BSE, up 2.19%, reflecting positive investor sentiment following the results announcement.

DCM Shriram Consolidated's strong Q2 performance, strategic expansions, and dividend declaration underscore its robust business model and growth trajectory in the diversified sectors it operates in.

DCM Shriram Consolidated , a diversified conglomerate, has announced a strategic move to strengthen its chemical business through the acquisition of four industrial salt companies. The company's Board of Directors has approved the purchase of 100% equity in Shree Raj Salt and Chemical Works Pvt. Ltd., Devjagan Salt Farm Pvt. Ltd., Maruti Salt Farm Pvt. Ltd., and Manek Salt Works Pvt. Ltd. for a consolidated cost of Rs 175 crores.

Strategic Expansion

The acquisition includes salt works with 1,077 acres of salt lease land in Gujarat, facilitating backward integration of DCM Shriram's chemical business into salt production. This move is expected to enhance the company's control over its raw material supply chain for its chemical operations.

Financial Details

The deal, structured as a cash transaction, is subject to adjustments as per the terms of the Definitive Agreement. The acquisition is expected to be completed by June 2026, contingent upon fulfillment of specified conditions and regulatory approvals, including the transfer of salt lease and manufacturing licenses.

Target Companies' Performance

The four acquired companies have shown varying financial performances in the recent fiscal year:

Despite the reported losses, DCM Shriram appears to be focusing on the long-term strategic value of these acquisitions for its chemical business.

Market Impact

The acquisition may contribute to DCM Shriram's vertical integration strategy, potentially leading to improved cost efficiencies in its chemical segment. However, the immediate financial impact may be limited, given the current performance of the acquired entities.

Regulatory Compliance

DCM Shriram has stated that the acquisitions do not fall within the definition of related party transactions under SEBI Listing Regulations. The company will seek necessary approvals from local industrial and other authorities to complete the transaction.

As DCM Shriram moves forward with this acquisition, stakeholders will be watching closely to see how the company integrates these salt works into its existing operations and whether this strategic move will translate into improved performance for its chemical business in the coming years.