DCM Shriram Q2 FY27 Results (NSE: DCMSHRIRAM)
Signal: Margin pressure
The read
The operating trajectory weakened in Q2FY27 despite revenue accelerating to ₹4,064.29 crore (+20.3% YoY): EBITDA fell 14.0% to ₹352.94 crore and margin contracted 174bps to 7.98%, with power and fuel expense up 30.3% to ₹608.55 crore. PAT of ₹144.35 crore (-14.3% YoY) is a cleaner indicator than the prior quarter's ₹711.43 crore, which included ₹474.30 crore of tax adjustments and a ₹106.03 crore exceptional gain; H1FY27 PAT of ₹855.78 crore remains heavily elevated by those non-operating benefits.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,064.29 Cr | +20.3% | +11.1% |
| EBIT | ₹228.36 Cr | -22.8% | |
| Net profit | ₹144.35 Cr | -14.3% | |
| EPS | ₹9.26 | -14.3% | |
| EBIT margin | 7.98% |
P&L walk
Standalone revenue increased to ₹4,064.29 crore (+20.3% YoY, +11.1% QoQ), but EBITDA declined to ₹352.94 crore (-14.0% YoY) and operating margin contracted to 7.98% from 9.72% as power and fuel costs rose 30.3% YoY; PAT fell to ₹144.35 crore (-14.3% YoY) after the prior quarter's tax and exceptional-item benefits.
Key positives
- Standalone revenue reached ₹4,064.29 crore, up 20.3% YoY and 11.1% QoQ, while employee benefits expense rose only 10.1% YoY to ₹321.75 crore.
- Finance costs declined 17.5% YoY to ₹34.64 crore and interest service coverage improved to 30.13x from 16.42x YoY.
- PPE increased to ₹7,265.60 crore and depreciation rose 8.8% YoY to ₹124.58 crore, producing a clean depreciation-to-asset-base cross-check.
- The company commissioned a 100 TPD aluminium chloride plant and 133 TPD of calcium chloride capacity during the quarter.
Key concerns
- Operating margin fell to 7.98% from 9.72% YoY and 9.30% QoQ, while EBITDA declined 14.0% YoY to ₹352.94 crore despite 20.3% revenue growth.
- Power and fuel expense rose 30.3% YoY to ₹608.55 crore, outpacing revenue growth and pressuring operating profitability.
- Receivables increased to ₹1,503.06 crore from ₹993.79 crore at March 2026, while H1 operating cash flow fell to ₹1,019.45 crore from ₹1,371.90 crore.
- The calcium chloride expansion is only partly commissioned at 133 TPD, with the remaining 133 TPD expected in Q3FY27.
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