DCM Shriram Approves Rs 217 Cr Project; Stock Drops 1.5%
Shares of DCM Shriram Ltd fell 1.5% after touching a day’s high of Rs 1,021.50 on 13th March. Even as the company said its board has approved an equity investment of up to Rs 87 crore, in one or more tranches. This is to acquire a minimum 26% stake in one or more special purpose vehicles (SPVs). The stake is for setting up a renewable energy power project for its Bharuch plant.
The board also approved capital expenditure of up to Rs 130 crore for related infrastructure. The investment will help the company secure about 48 MW of additional renewable power for its Bharuch plant. This includes around 30 MW of round-the-clock power at a 75% capacity utilisation factor.
With this addition, the total renewable power capacity for the Bharuch plant will rise to 98.4 MW from the current peak of 50.4 MW. The equity investment will be made in one or more special purpose vehicles (SPVs) created for the renewable project. Furthermore, this is expected to be completed around June 2027.
DCM Shriram Third Quarter Results
DCM Shriram reported a 19% YoY decline in net profit to Rs 212 crore in Q3FY26, compared with Rs 262 crore in the same quarter last year. Despite this, revenue rose 13.8% YoY to Rs 4,003 crore from Rs 3,519 crore.
The company’s EBITDA increased 7.1% YoY to Rs 531.5 crore, although margins narrowed to 13.3% from 14.1% in Q3FY25.
The decline in profits was partly due to the implementation of India’s four new labour codes, which consolidate 29 labour laws covering wages, industrial relations, social security, and workplace safety. As a result, the company made an additional provision of Rs 55 crore for the quarter. The same provision applies for the nine months ended 31st December, 2025.
At 11:35 AM, shares of DCM Shriram were trading 1.5% lower at Rs 1,000.50 on the NSE.
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