DCM Shriram Shares Jump Over 12% After Strong Q1 Profit Growth

Shares of DCM Shriram surged in early trade on Wednesday after the company reported a significant improvement in its June-quarter financial performance. The stock gained as much as 12.54% to reach an intraday high of ₹1,186.50 on the BSE, outperforming the broader market.

The rise in the stock followed strong earnings reported by the company for the first quarter of financial year 2027.

DCM Shriram posted a consolidated net profit of ₹693 crore in Q1FY27, compared with ₹113 crore in the corresponding quarter last year. The sharp rise in profit was partly supported by exceptional gains worth ₹79.42 crore.

The exceptional income included ₹11.74 crore from the sale of a 50% stake in its wholly owned subsidiary to Teknor Apex B.V. and ₹67.68 crore from the sale of surplus land at Mokila village associated with its Bioseed business.

The company’s revenue from operations increased 9.3% year-on-year to ₹3,565 crore from ₹3,262 crore in the previous year’s quarter. Growth was driven mainly by strong performance in the chemicals business and Fenesta Building Systems.

Revenue from the chemicals segment increased 33% year-on-year, while Fenesta Building Systems recorded 22% growth. The company said improvement in profit before depreciation, interest and tax was largely contributed by the Chemicals and Vinyl segment, which grew 30%.

At the operating level, EBITDA increased 10.9% to ₹336 crore from ₹303 crore a year earlier. EBITDA margin also improved marginally to 9.4% in Q1FY27 from 9.3% in the same period last year.

Commenting on the results, Chairman and Senior Managing Director Ajay Shriram and Vice Chairman and Managing Director Vikram Shriram said the quarter was challenging due to global uncertainties, geopolitical tensions and disruptions in energy markets.

They noted that the West Asia conflict affected supply chains and increased inflationary pressures, while uneven monsoon conditions temporarily impacted rural consumption. However, they highlighted that India’s industrial growth outlook remained strong due to stable domestic fundamentals.