DCM Shriram Industries Limited Earnings Summary — Q1 FY2027
DCM Shriram Industries Reports Strong Q1 Recovery with Substantial Profit Growth Following Scheme Implementation
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹527 Cr is 1.2% lower year-on-year.
- Revenue has compounded at 0.4% annualised over the last 10 quarters.
- Net profit of ₹-3 Cr is 113.6% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -21.1% annualised across the period.
- Operating margin stands at 1.8% in Q2 FY2026.
- Operating margin compressed by 679 bps year-on-year.
- Over the last two years operating margin has contracted by 605 bps.
- PBT margin is -0.6%.
- Expenses grew 6.2% against revenue growth of -1.2%.
- Operating profit of ₹10 Cr is 79.2% lower year-on-year.
- Operating leverage has been under pressure recently.
- 2 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 28/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 | Q3 FY2024 | Q2 FY2024 | Q1 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 527 | 499 | 472 | 493 | 533 | 554 | 512 | 468 | 580 | 522 |
| Expenses | Stable | 517 | 455 | 423 | 450 | 487 | 492 | 443 | 416 | 535 | 465 |
| Operating Profit | Declining | 10 | 44 | 48 | 43 | 46 | 62 | 69 | 52 | 46 | 57 |
| Operating Margin | Declining | 1.8% | 8.7% | 10.2% | 8.7% | 8.6% | 11.1% | 13.5% | 11.1% | 7.9% | 10.9% |
| Other Income | Improving | 5 | 4 | 7 | 10 | 9 | 7 | 5 | 8 | 5 | 5 |
| Interest | Accelerating | 8 | 11 | 8 | 7 | 10 | 11 | 9 | 6 | 9 | 11 |
| Depreciation | Stable | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Profit Before Tax | Declining | -3 | 26 | 36 | 37 | 35 | 48 | 55 | 44 | 32 | 42 |
| Tax | Declining | -0 | 10 | 13 | 13 | 12 | 17 | 16 | 15 | 11 | 14 |
| Net Profit | Declining | -3 | 17 | 24 | 24 | 23 | 31 | 39 | 29 | 21 | 27 |
| Net Margin | Volatile | -0.6% | 3.4% | 5.0% | 4.8% | 4.3% | 5.7% | 7.5% | 6.2% | 3.5% | 5.2% |
Key Takeaways
- Net profit surged to ₹1,067 lakhs in Q1 FY2027, a significant increase from both the prior quarter (₹156 lakhs) and the same quarter last year (₹106 lakhs restated).
- Revenue remained relatively stable on a sequential basis at ₹29,363 lakhs, reflecting steady operations in the core sugar and distillery segments.
- The company successfully implemented a Composite Scheme of Arrangement during FY2026, leading to restated figures for prior periods to ensure comparability.
- Operating efficiencies improved markedly, with profit before tax rising to ₹1,591 lakhs compared to just ₹129 lakhs in the preceding quarter.
- Tax expense for the quarter included adjustments related to modified income tax returns filed for FY2024 and FY2025 to align with the new corporate structure.
- The company remains a single-segment entity focused on Sugar (including distillery) following its recent internal restructuring.
- Inventory levels showed significant movement with a net change of ₹(6,854) lakhs, typical of the cyclical nature of sugar processing cycles.
Management Guidance
Management focus remains on optimizing the sugar and distillery operations following the successful execution of the Composite Scheme of Arrangement. The company has filed modified tax returns to reflect the new scheme's impact on its fiscal obligations.
Sentiment Shift
Improving
The sharp recovery in net profit and margins compared to the heavily restated and volatile prior quarters suggests the company is stabilizing under its new structure.
Outlook
The outlook is cautious but positive as the company navigates regulatory uncertainties regarding GST and VAT on certain supplies, currently sub-judice. The focus remains on the distillery segment as a primary profit driver.
From the Annual Report (Key Quotes)
“The earlier period figures are as restated after effectuating the Composite Scheme of Arrangement during FY 2025-26.”
“The Company's business activities falls within a single primary business segment i.e. Sugar (including distillery).”
“GST demand was raised... adequately provided as provision for contingencies with corresponding reimbursement asset.”
Official Quarterly Documents
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This summary is AI-generated from DCM Shriram Industries Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.