DCM Shriram’s stock witnessed a significant surge, climbing 11% to reach an impressive intra-day high of ₹1,129.10 on the National Stock Exchange. This rally is fueled by the company’s robust quarterly earnings report for Q4FY25, showcasing a remarkable 52% year-on-year increase in net profit. With strong contributions from all business segments, both revenue and margins experienced substantial growth.
Impressive Quarterly Earnings
In the latest quarter, DCM Shriram reported a revenue of ₹2,876.7 crore, reflecting a 19.9% YoY increase compared to ₹2,399.3 crore from the previous year. The operating performance aligned closely with this growth, as the company’s EBITDA soared by 52.8% YoY to reach ₹405.3 crore, up from ₹265.3 crore during the same period last year. This impressive performance highlights the company’s resilience and operational efficiency.
Expansion Plans on the Horizon
Looking ahead, DCM Shriram is set to enhance its production capabilities with the commissioning of a 52,000 TPA Epichlorohydrin (ECH) Plant located in Bharuch by Q1FY26. Although the company has encountered a potential delay due to a technical issue with a component, trial runs are still anticipated to start by the end of May 2025. Additionally, the new Fenesta Aluminium Extrusion plant in Kota, Rajasthan, is expected to be operational by Q4 FY26.
Q3 Performance Recap
Reflecting on the previous quarter, DCM Shriram’s consolidated net profit for Q3FY25 rose by 9% to ₹262.14 crore, while total revenue from operations jumped by 12.15% to ₹3,518.89 crore. Profit before tax for this period was ₹385.52 crore, showing a slight decrease of 0.83% from ₹388.77 crore in the same quarter last year. The company’s revenue streams included ₹1,041.57 crore from its sugar business—a 4.83% YoY growth—and ₹931.64 crore from the Chloro-vinyl segment, which surged by 32.88% YoY. However, the fertilizer segment noted a decline, generating ₹382.97 crore, down 8.37% YoY.
Stock Performance Overview
In recent trading activity, DCM Shriram’s stock has shown resilience, gaining 4.4% over the last five days and yielding a 1.9% return over the past month. Despite a 6.5% decline over the past six months, the stock has managed to increase by 2.8% year-on-year, indicating a positive longer-term trend.
With its strong quarterly results and strategic expansion plans, DCM Shriram continues to position itself favorably in the market, reflecting its commitment to growth and innovation. For those looking to invest, this company’s performance could be worth monitoring.
For more insights on investment opportunities, check out our articles on Varun Beverages and RailTel as they prepare for upcoming dividend payouts in April.