DCM Shriram Reports Financial Insights amid Global Challenges

DCM Shriram Ltd reported a 19% decline in net profit for the December quarter due to a one-time charge under new labor codes. Despite a rise in total income, outstanding debt decreased, and a dividend was announced. Executives commented on global volatility impacting supply chains and costs.

DCM Shriram Ltd reported a significant 19% decrease in net profit to Rs 212.11 crore for the December quarter, attributed to a one-time exceptional charge of Rs 55 crore due to the new labor codes. In the previous year, the company had recorded a net profit of Rs 262.14 crore, as per regulatory filings.

Despite the drop in profit, the company's total income saw an increase, reaching Rs 4,031.99 crore in the October-December quarter of the 2025-26 fiscal year compared to Rs 3,559.98 crore in the same period the prior year. The debt level also improved, with outstanding debt at Rs 1,871.75 crore, reduced from Rs 2,185.64 crore.

DCM Shriram further strengthened its shareholder value by announcing a Rs 56.14 crore dividend for the third quarter. Company leaders, including Chairman Ajay Shriram and Vice Chairman Vikram Shriram, highlighted challenges such as geopolitical tensions, financial fluctuations, and technological shifts disrupting global trade and cost structures. Despite this, they noted India's economic resilience supported by macroeconomic fundamentals and a demographic dividend.

(With inputs from agencies.)