Ethanol stock jumps 8% after reporting 152% YoY increase in net profits

Synopsis:
The shares of this company skyrocketed more than 8  percent following its Q2 results as PAT increased 152  percent along with declaration of 180  percent dividend.

The shares of this diversified conglomerate with business in sugar, alcohol, fine chemicals, industrial fibres, and defence-related products were under focus when its result came out , highlighting its increased Revenue and PAT.

With a market cap of Rs 20,879 Crore, the shares of DCM Shriram Ltd gave a closing price of Rs 1,329 .It jumped more than 8  percent and made an intraday high of Rs 1,408.8 compared to its previous day closing price of Rs 1,301.3. The shares are trading at a discount of 12  percent from its high of Rs 1,501.7 and have given a return of  294   percent over the last 5 years.

Q2 FY26 Result Highlights

The Company reported Rs 3,531  crore in sales, marking a 11 percent YoY  increase when compared to Q2 FY25 sales of Rs 3,184  and on QoQ basis has increased  by 1.5  percent from Rs 3,477 crore. 

The major highlight of the result was the PAT which stands at Rs 159 crore in Q2 FY26 from Rs 63 crore in Q2 FY25 which is a growth of 152  percent on YoY basis and on QoQ basis an increase of 39   percent from Rs 114 crore in Q1 FY26. The company has decided to give an interim dividend of Rs 3.6 with record date being 3 November, 2025.

Operational & Business Performance in different segments of the company.

Chemicals: Revenues grew 50  percent YoY to  Rs 913 crore with PBDIT up 195  percent to Rs 254 crore, driven by 22  percent higher caustic volumes and improved ECU margins.

Sugar & Ethanol: Revenues declined 6  percent YoY owing to lower sales volumes, but PBDIT surged 143  percent to Rs 33 crore due to higher ethanol margins and upward revision in power tariffs by UPPCL. 

Shriram Farm Solutions: Reported strong 27  percent revenue growth to Rs 471 crore and 47  percent increase in PBDIT to Rs 106 crore. Growth was led by the research wheat and crop protection verticals. 

Fenesta Building Systems: Revenues rose 28  percent to Rs 283 crore, with order book up 71  percent YoY. The Company continues to diversify into aluminium, façade, and hardware solutions, expanding its footprint across 975 cities in India & international presence in 4 countries. Bioseed: Bioseed saw seasonal moderation in domestic volumes but continued investments in next-generation seeds and R&D. 

Written by Leon Mendonca

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