DCM Shriram Fine Chemicals: consolidated PAT falls 40% YoY to ₹2.59 Cr, margins compress
PAT -40.11% YoY · revenue -7.95% · margins compressing
₹90.78 Cr
-7.95% YoY
₹2.59 Cr
-40.11% YoY
2.82%
₹0.3
DCM Shriram Fine Chemicals Limited (DSFCL) reported consolidated Q1 FY27 (quarter ended June 30, 2026) revenue from operations of ₹90.78 Cr, down 7.9% YoY from ₹98.62 Cr and down 2.5% QoQ from ₹93.08 Cr. Consolidated PAT was ₹2.59 Cr, down 40.1% YoY from ₹4.33 Cr in Q1 FY26, though it marks a sequential turnaround from a ₹3.83 Cr net loss in Q4 FY26 (standalone tells a consistent story: revenue ₹90.78 Cr, PAT ₹2.42 Cr, down 41.5% YoY — divergence between the two bases is under 3%). Consolidated NPM compressed to 2.82% from 4.35% a year ago; EPS came in at ₹0.30 versus ₹0.50 in Q1 FY26. No exceptional items are disclosed in either period.
Q1 FY-2027 vs prior quarters
No year-ago quarter on record — YoY cells may be blank.
The YoY margin compression traces to raw-material intensity: cost of materials consumed rose to 66.9% of revenue from operations this quarter versus 58.2% a year ago, while employee and other operating costs held roughly flat as a share of revenue — pointing to weaker realizations or costlier inputs in the organics/fine-chemicals business rather than cost-control slippage. A large part of the sequential (QoQ) swing from loss to profit is an inventory-accounting effect: the 'change in inventories' line moved from a ₹2.44 Cr cost addition in Q4 FY26 (inventory drawdown) to a ₹8.75 Cr cost reduction in Q1 FY27 (inventory build) — a working-capital timing effect that flatters the quarter-on-quarter comparison and should not be read as a standalone operational turnaround.
The stock went into the print at ₹23.32, down 17.3% over the past month of trading.
What the summary numbers don't show
Subsidiary Daurala Foods & Beverages contributed ₹0.24 Cr revenue and ₹0.18 Cr PAT to consolidated numbers this quarter
There is no analyst/street coverage of this micro-cap entity, which is distinct from the much larger, separately-listed DCM Shriram Limited (parent-group ticker, ₹3,564 Cr quarterly revenue) that dominates web search results for the "DCM Shriram" name — vsStreet is unknown. Management has no formal guidance on record for the quarter, and no press release beyond the regulatory filing was available. The result coincides with a same-day board reshuffle: Akshay Dhar resigned as MD & CEO effective close of business August 14, 2026 to focus on the group's new projects, Rudra Shriram (son of Chairman Alok B Shriram) was inducted as MD for five years effective August 15, 2026, and Rakesh Malhotra joined as an independent director — landing in the same week as promoter-family shareholding moves (stake increases by Urvashi Tilakdhar to 27.42% and by Suman Dhar, a stake disposal by Madhav B. Shriram), though the filing draws no operational link between the two.
W1
Whether the Q1 FY27 EBITDA-margin recovery (~6.8% of revenue vs roughly -1.9% in Q4 FY26) holds in Q2 without the one-time inventory-build tailwind
W2
Direction under new MD Rudra Shriram (effective Aug 15, 2026) following Akshay Dhar's exit, given the FY25-26 chemical/rayon demerger scheme now in effect
W3
Whether the YoY decline (revenue -7.9%, PAT -40.1% in Q1) persists or reverses into Q2 FY27 as raw-material cost ratio (66.9% of revenue in Q1) trends
Figures reported in ₹ Lakhs, converted to ₹ Crore (÷100). Consolidated adds subsidiary Daurala Foods & Beverages Pvt Ltd (Q1FY27 revenue ₹0.24 Cr, PAT ₹0.18 Cr). Q1 FY26 comparative column is unaudited/uncertified by the statutory auditor per Note 2. No exceptional items disclosed either period; a large swing in the 'change in inventories' line (Q4FY26 +₹2.44 Cr cost vs Q1FY27 -₹8.75 Cr cost) drives much of the QoQ swing to profit. Same-day MD transition (Akshay Dhar resigns, Rudra Shriram inducted) and new independent director appointment.