- DCM Shriram shares surged 12.54% to Rs 1,186.50 on BSE after Q1FY27 earnings report
- Stock traded 8.3% higher at Rs 1,142.60, outperforming BSE Sensex which rose 0.93%
- Consolidated net profit jumped to Rs 693 crore in Q1FY27 from Rs 113 crore a year ago
DCM Shriram shares surged as much as 12.54% on Wednesday to an intraday high of Rs 1,186.50 apiece on the BSE after the company reported a sharp rise in June-quarter earnings.
At 9:20 am, the stock was trading 8.3% higher at Rs 1,142.60, outperforming the BSE Sensex, which was up 0.93%.
The uptick in share price came on the back of robust earnings in the first quarter of financial year 2027 (Q1FY27).
The company reported a consolidated net profit of Rs 693 crore for the first quarter of FY27, compared with Rs 113 crore a year ago.
ALSO READ: DCM Shriram Q1 Results: Profit Rockets 6X As Revenue Rises; Margin Little Changed
The sharp increase was aided by exceptional gains of Rs 79.42 crore, including Rs 11.74 crore from the sale of a 50% stake in its wholly owned subsidiary to Teknor Apex B.V. and Rs 67.68 crore from the sale of surplus land at Mokila village related to its Bioseed business.Revenue from operations, also known as topline, rose 9.3% year-on-year (YoY) to Rs 3,565 crore from Rs 3,262 crore.
"The increase in revenues was contributed by chemicals (up by 33% YoY) and Fenesta Building Systems (up by 22% YoY). The increase in PBDIT was contributed by the Chemicals & Vinyl segment (up by 30%)," the company said.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) increased 10.9% to Rs 336 crore from Rs 303 crore.
Subsequently, the EBITDA margin improved 10 basis points (bps) to 9.4% in the June quarter of FY27, from 9.3% in the corresponding quarter last year (Q1FY26).
On Q1 performance, Ajay Shriram, chairman and senior managing director and Vikram Shriram, vice chairman and managing director, said, "The first quarter of FY27 tested the global economy with complex mix of geopolitical uncertainties. The
ongoing West Asia crisis has disrupted supply chains and energy markets, leading to renewed inflationary pressures and cementing expectations of a prolonged higher interest rate environment. Domestically, we have also faced a highly erratic start to the southwest monsoon, which has placed temporary pressure on rural consumption. However, the broader Indian industrial narrative remains robust, supported by strong domestic fundamentals."
"With our major capex cycles transitioning into the commissioning phase, we are focused on capacity rampup, deep value-chain integration, and disciplined capital allocation. Our balance sheet remains strong, giving us resilience from external volatility and enabling us to pursue growth. Sustainability remains embedded in our growth strategy; by focusing on responsible resource utilisation and driving energy efficiencies across our manufacturing footprint," they added.
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