Agrochemical stock jumps 9% after signing MoU with Bayer CropScience

Synopsis: DCM Shriram and Bayer CropScience have partnered to promote sustainable, technology-driven farming in India, working together on crop solutions, digital tools, soil health, and farmer-focused initiatives.

This Small-cap Stock, engaged in manufacturing fertilizers, chemicals, sugar, PVC products, and hybrid seeds, serving farmers and industries across North and Central India, jumped 9.29 percent after signing an MoU with a global leader in crop solutions.

With a market capitalization of Rs. 20,107.98 crores, the share of DCM Shriram Limited has reached an intraday high of Rs. 1,319 per equity share, rising nearly 9.29 percent from its previous day’s close price of Rs. 1,206.90. Since then, the stock has retreated and is currently trading at Rs. 1,289.45 per equity share. 

Reason Behind the Surge

DCM Shriram Limited and Bayer CropScience Limited have signed a new agreement to work together and help improve Indian agriculture. The partnership focuses on making farming more sustainable, modern, and beneficial for farmers. Both companies aim to combine their strengths to bring better crop solutions, improved farming practices, and useful digital tools to the agriculture sector.

As part of this collaboration, they will explore joint work in areas like seeds, plant nutrition, biological products, and digital advisory platforms. They also plan to support farmer groups and run projects on soil health, carbon management, and integrated crop practices.

Management Commentary

Mr Ajay S. Shriram, Chairman & Senior Managing Director, and Mr Vikram S. Shriram, Vice Chairman & Managing Director of DCM Shriram Ltd, said, “We are delighted to partner with Bayer to explore new avenues that can benefit India’s farming communities. By bringing together complementary strengths, we aim to support sustainable and productive agriculture while creating long-term value for farmers and the wider ecosystem.”

Mr Simon Wiebusch, Chief Executive Officer, Bayer CropScience Ltd, said, “Indian agriculture is entering a phase where resilience and value-chain integration will define long-term success. With this partnership, Bayer and DCM Shriram can enhance market access, strengthen value-chain connections, and help farmers tap into emerging opportunities. Our combined and complementary expertise enables us to scale solutions quickly and create lasting positive change.”

Current Capacity

DCM Shriram Limited operates in Chemicals & Vinyl, Agri Businesses, and Building Materials. In chemicals, it produces caustic soda (2,749 TPD), hydrogen peroxide (165 TPD), epichlorohydrin (52,000 TPA), aluminium chloride (150 TPD), epoxy resins (33,551 TPA), PVC resins (220 TPD), calcium carbide (112,000 TPA), and polymer compounds (24,050 TPA).

In the agri segment, the company runs sugar operations (42,400 TCD), co-generation power (166 MW), distilleries (up to 560 KLD), compressed biogas (12 TPD), fertilizer (379,500 TPA), Shriram Farm Solutions, and Bioseed. It also operates Fenesta Building Systems (12,284 TPA) and a cement unit (400,000 TPA).

Company Overview

DCM Shriram Limited was established in 1989 and is primarily engaged in agribusiness, chlor-alkali chemicals, and sugar, along with value-added PVC and other related businesses. Its agribusiness includes urea and other fertilizers, hybrid seeds, and farm solutions under well-known “Shriram” brands, catering mainly to farmers in northern and central India.

Revenue Mix of Q2 FY25

DCM Shriram Limited reported total revenue of Rs. 3,295 crore in Q2 FY26, contributed by several business segments. The biggest share came from Chemicals & Vinyl (Rs. 1,108 crore) and Sugar & Ethanol (Rs. 933 crore). 

Other important segments were Shriram Farm Solutions (Rs. 471 crore), Fenesta Building Systems (Rs. 283 crore), Fertilizer (Rs. 357 crore) and Bioseed (Rs. 86 crore). A smaller portion came from Others (Rs. 56 crore), which includes Cement (Rs. 39 crore) and Hariyali (Rs. 16 crore).

Recent quarter results

Coming into financial highlights, DCM Shriram Limited’s revenue has increased from Rs. 2,957 crore in Q2 FY25 to Rs. 3,272 crore in Q2 FY26, which has grown by 10.65 percent. The net profit has also grown by 152.38 percent from Rs. 63 crore in Q2 FY25 to Rs. 159 crore in Q2 FY26. DCM Shriram Limited’s revenue has grown at a CAGR of 9.23 percent over the last five years.

In terms of return ratios, the company’s ROCE and ROE stand at 11.4 percent and 8.66 percent, respectively. DCM Shriram Limited has an earnings per share (EPS) of Rs. 45.7, and its debt-to-equity ratio is 0.30x.

Written By – Nikhil Naik

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