DCMSHRIRAM
Large CapDCM Shriram Limited
Diversified
DCM Shriram Ltd. is a diversified and integrated business entity with extensive presence across Agri value chain (Sugar & Ethanol, Shriram Farm Solutions, Bioseed, Fertilizer), Chemicals & Vinyl, and Building Material Products (Fenesta). Access to captive power at all key manufacturing units optimizes competitive edge.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Good · 57/100Rev +11% YoY · PAT +107% YoY · operating leverage · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,193 Cr | +11.0% | -16.2% |
| EBITDA | ₹353 Cr | -12.8% | -33.6% |
| Operating margin | 11.0% | -300 bps | -300 bps |
| PAT | ₹371 Cr | +107.3% | +74.2% |
| PAT margin | 11.6% | +540 bps | +603 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 consolidated net revenue grew 11% YoY to Rs 3,193 Cr, PBDIT declined 6% YoY to Rs 400 Cr, while PAT surged 107% YoY to Rs 371 Cr. For FY26, net revenue rose 12% YoY to Rs 13,538 Cr, PBDIT increased 15% YoY to Rs 1,694 Cr, and PAT was up 42% YoY to Rs 856 Cr.
While full-year results show growth, Q4 PBDIT decline and margin pressures in key segments like Sugar & Ethanol and Chemicals raise concerns. Management's focus on expansion and advanced materials is positive, but execution and commodity price volatility remain critical. The thesis is under stress due to mixed Q4 performance and persistent headwinds.
PBDIT by Business Segment (FY26)
Latest issuer-disclosed distribution across 3 reported categories.
Chemicals Business Volume Growth
Chemicals business recorded strong volume growth, driven by progressive ramp-up of expansion and downstream integration completed over last two years.
Advanced Materials Value Chain
Epichlorohydrin (ECH) facility got fully commissioned in April 2026, witnessing encouraging market acceptance. Epoxy and Formulated resins business is being expanded.
Consumer Businesses Growth
Fenesta Building Systems & Shriram Farm Solutions continued to grow at a healthy pace while consolidating their market position and reaching new milestones.
Strategic Partnerships
Entered a JV with a US Company for PVC compounding business to accelerate growth.
Epichlorohydrin Plant Commissioning
52,000 TPA Epichlorohydrin Plant at Bharuch commissioned in April 2026.
Formulated Resins Capacity Expansion
Board approved capital expenditure of Rs. 101 crores for 36 KTPA expansion of formulated resins (FR) capacity, expected by Q2 FY28.
Captive Renewable Energy
68 MW (peak) captive renewable energy for Kota expected by Q1 FY27. 48 MW (peak) captive renewable energy for Bharuch expected by Q1 FY28.
Fenesta Aluminium Extrusion Plant
First phase of Fenesta Aluminium Extrusion Plant at Kota expected by Q1 FY27.
Indian Economy Resilience
Indian economy demonstrated better resilience, supported by strong macroeconomic fundamentals, sustained domestic demand and continued public infrastructure spending.
Government Incentives
Company recognized an incentive of Rs 19 crore in Q4 FY26 and Rs 87 crore in FY26 from the Govt. of Gujarat relating to projects commissioned in previous years.
Lower Energy Prices
Lower energy prices & better efficiencies supported cost structure in Chemicals business for FY26.
Persistent Global Uncertainties
Rising trade protectionism, supply chain realignments and escalation of conflict in West Asia continued to impact commodity markets, logistics corridors and capital flows.
Sugar & Ethanol Margin Pressures
Industry is facing margin pressures arising from higher cane cost and oversupply in Sugar as well as Ethanol business.
Chemicals Margin Impact
Elevated fixed costs associated with business expansion & stabilization impacted margins in Chemicals. Investments towards scaling up of capacities, stabilization costs of new plants impacted margins.
PVC Price Volatility
PVC prices remained volatile, initially declining due to dumping by China, then increasing due to Middle East conflict & depreciating rupee, and receding due to import duty waiver.
Global & Geopolitical Risks
Forward-looking statements are subject to risks like government actions, local, political or economic developments, technological risks, and other factors.
Commodity Price Volatility & Energy Costs
Continuing Middle East conflict may impact global demand & supply leading to increased volatility in prices. Increase in energy prices, if not passed through, may put pressure on margins.
Regulatory Uncertainty for Fertilizers
Urea energy norms starting from 01 April 2025 is yet to be notified by the Department of Fertilizers.
Sugar Industry Policy Dependence
Rising sugarcane prices are expected to exert further pressure on margins, underscoring the need for proactive policy support to safeguard industry viability.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company operates diversified businesses including seasonal agri segments (Sugar, SFS, Bioseed) which are best assessed YoY, and project-based building materials (Fenesta) and commodity chemicals (Chemicals & Vinyl) where QoQ trends in utilization, spreads, and sequential momentum are also decision-useful.
Caustic Sales Volume
Q4 FY26 volumes were up 2.5% YoY; FY26 volumes were up 12% YoY.
Caustic ECU Realizations
Q4 FY26 ECU realizations were down 4.4% YoY; FY26 ECU realizations were up 1.6% YoY.
Caustic Capacity Utilization
Capacity utilization for caustic plants stood at 83% in Q4 FY26 (vs 81% LY); FY26 at 81% (vs 75% LY).
PVC Sales Volume
Q4 FY26 PVC volumes were up 22.9% YoY; FY26 volumes were up 9.7% YoY.
Strategic Focus
The Company remains focused on value-chain integration, capacity optimization, cost efficiency and disciplined capital allocation.
Growth Opportunities
Supported by a strong balance sheet, we remain well positioned to pursue growth opportunities while navigating an increasingly dynamic global environment.
Sustainability Commitment
Sustainability continues to remain integral to our long-term strategy through responsible resource utilization, environmental stewardship and meaningful community engagement.
Sugar Industry Policy Support
Sustained policy support—through higher sugar MSP, expanded blending mandates, export facilitation and alternate ethanol usage—remains critical for industry viability.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Chemicals & Vinyl Segment Margins | Impacted by elevated fixed costs and stabilization costs of new plants in Q4 FY26. | Improvement in margins as new capacities ramp up and stabilization costs subside, alongside commodity price trends. |
| Sugar & Ethanol Policy Support | Industry facing margin pressures from higher cane cost and oversupply. | Government actions on sugar MSP, ethanol blending mandates, and export facilitation to support industry viability. |
| Fenesta Order Book Conversion | Order book up 15% in Q4 FY26 and 24% in FY26. | Timely execution of orders and effective management of fixed costs from scaling core business and new platforms. |
| Fertilizer Urea Energy Norms | Urea energy norms starting from 01 April 2025 are yet to be notified. | Notification of new energy norms and their impact on profitability and operational efficiency. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
45NeutralSMA20 -4.5% / mo · near 52W low
Technical chart
DCMSHRIRAMweekly · 5Y-17.5%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 41.
- SMA20 falling (~4.8% over last month) — short-term momentum negative.
- RSI(14) at 41 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 29% off 52W high · 8% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 11/15 to the score.
- Cash flow contributes 4/10 to the score.
Main drags
- Fair-value margin of safety is negative at -16.1%.
- Quality is weaker at 3/20; verify the latest quarterly trend.
- Valuation is weaker at 5/30; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 82nd percentile of the scored universe and 88th percentile within Diversified. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 66.5%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Diversified: 88th pctile, median 63 · Large: 63rd pctile, median 74
148 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 66.5%.
- ▸Promoter pledge is zero.
- ▸6 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 17.80
- P/B
- 2.01
- EV/EBITDA
- 9.24
- Market Cap
- 15555.00Cr
Profitability
- ROE
- 11.80%
- ROCE
- 11.80%
- ROA
- 6.06%
- Dividend Y
- 0.90%
Growth (CAGR)
- Revenue 5Y
- 10.00%
- EPS 5Y
- 6.00%
- Revenue 3Y
- 5.00%
- EPS 3Y
- -1.00%
Balance Sheet
- Debt/Equity
- 0.38
- Interest Coverage
- 8.51×
- Altman Z
- 3.72
- Book Value
- 495.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 6/5
- OCF
- 1234.00 Cr
- EPS TTM
- 54.73
Shareholding
- Promoter Hold
- 66.53%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 9%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Diversified — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.