DCM Shriram extends gain to second day, jumps 11% on strong Q4 results

DCM Shriram's net profit surged 51 percent YoY in Q4

Shares of DCM Shriram continued their upward movement for the second day in a row, rising by 11 percent to reach Rs 1,128 per share on May 6. This sharp rise came after the company reported a strong performance for the March quarter (Q4FY25) performance.

Over the last two trading sessions, the stock of this chemical manufacturing company has jumped by 13 percent. In comparison, the benchmark Nifty 50 index has moved up by only 0.6 percent during the same period.

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For the March quarter, DCM Shriram reported a consolidated net profit of Rs 178.9 crore, marking a year-on-year growth of 51.9 percent from Rs 117.8 crore in the same quarter last year. The company recorded strong performance across its business segments, which helped boost both revenue and profit margins.

Revenue for the quarter stood at Rs 2,876.7 crore, an increase of 19.9 percent from Rs 2,399.3 crore in the corresponding quarter of the previous year. The operating performance was also strong, with EBITDA rising by 52.8 percent to Rs 405.3 crore, compared to Rs 265.3 crore in the same period last year.

The EBITDA margin improved noticeably, climbing to 14.1 percent from 11.1 percent in the previous year. This improvement was driven by better pricing and more efficient operations.

The company’s board has proposed a final dividend of Rs 3.40 per share for the financial year 2025.

Recently, DCM Shriram also announced that it plans to acquire a 53 percent equity stake in DNV Global Private Limited, a company involved in the manufacturing and trading of window and door hardware. This acquisition is expected to support backward integration for the Fenesta business and will mark DCM Shriram’s entry into a new area of hardware manufacturing.

The deal is expected to be completed within eight weeks and does not require any major regulatory approvals. The acquisition is in line with DCM Shriram’s strategy to expand along the value chain and strengthen operational synergy within its consumer-focused business segments.

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