1. Opening Hook
Geopolitics is on fire, tariffs are flirting, and global supply chains are playing musical chairs—so naturally, DCM Shriram decided this was the perfect quarter to commission plants, acquire businesses, and test investor patience. While markets were busy doomscrolling macro headlines, management calmly talked about caustic volumes, ethanol reversals, and epoxy dreams like it’s business as usual.
Q3 FY26 wasn’t a blowout, but it wasn’t a disaster either. Revenues grew, profits slipped, and the balance sheet stayed annoyingly disciplined. Chemicals flexed, Sugar sweetened margins, Fenesta sulked, and Farm Solutions reminded everyone that agriculture never behaves on schedule.
If you’re expecting a clean, linear story—sorry. If you enjoy messy diversification with occasional upside surprises, keep reading. Things get more interesting once the numbers start contradicting the optimism.
2. At a Glance
- Revenue up 13% YoY – Volumes showed up on time, prices… not always.
- PBDIT flat YoY – Growth ran, margins jogged, costs tagged along.
- PAT down 19% – Exceptional items entered, profits exited quietly.
- Chemicals revenue up 30% – Volume-led growth doing the heavy lifting.
- Sugar PBDIT up 82% – Ethanol reversals doing God’s work.
- Fenesta PBDIT down 19% – New platforms, old margin pain.
- Net debt at ₹1,084 cr – Capex-heavy,
- but not reckless.
3. Management’s Key Commentary
“The global business environment is being reshaped by geopolitical volatility and tighter financial conditions.”
(Translation: If something breaks later, we warned you early 😏)
“Our Chemicals business delivered volume-led growth during the quarter.”
(Margins took a coffee break, but trucks kept moving.)
“Epichlorohydrin has seen encouraging market acceptance.”
(Finally, downstream integration is doing something.)
“Anti-dumping duty on epoxy resins should accelerate turnaround.”
(Government policy, now officially part of our strategy deck.)
“Sugar production estimates have been revised downwards.”
(Scarcity = pricing power, please don’t ask further.)
“Fenesta continues to deepen wallet share through product expansion.”
(Margins sacrificed at the altar of long-term ambition.)
“Supported by a strong balance sheet, we remain future-ready.”
(Capex-heavy, but still sleeping well at night.)
4. Numbers Decoded
| Metric | Q3 FY26 | YoY |
|---|---|---|
| Revenue | ₹3,811 cr | +13% |
| PBDIT | ₹560 cr | +4% |
| PAT | ₹213 cr | -19% |
| ROCE | 13.5% | Flat |
| Net Debt | ₹1,084 cr | ↑ |
