Tax reversal lifts DCM Shriram Q1 net to ₹693 cr
A ₹474 crore tax reversal lifted DCM Shriram's Q1 net to ₹693 crore, while revenue grew 9.5% to ₹3,784.67 crore.
— 4 earlier stories on DCM Shriram Ltd. →What's new
- Consolidated profit jumped to ₹693 cr, driven by a ₹474 cr tax reversal from an ITAT order.
- Exceptional gains of ₹79 cr from land sale and stake sale in subsidiary Shriram Polytech.
- First quarter after signing 58 MW renewable power agreement for Bharuch complex.
Why this matters
The tax reversal is non-recurring but resolves a long-standing overhang from the ITAT order. Excluding one-offs, underlying profit growth aligns with the modest revenue uptick. The ₹1,000–1,200 crore capex plan and a debt-equity ratio of 0.23x signal investment without straining the balance sheet.
What we're watching
- Concalls: management guidance on demand outlook and capex execution.
- Progress on renewable power sourcing and its impact on costs at Bharuch.
- Any further tax or regulatory developments following the ITAT ruling.
The full read
DCM Shriram's June-quarter net profit of ₹693.44 crore looks spectacular, but ₹474.30 crore of it came from a tax reversal — not operations. The favourable ITAT ruling on a Section 80-IA claim delivered a one-time income-tax credit that overshadowed the underlying performance. Revenue rose just 9.5% to ₹3,784.67 crore, and exceptional gains from a land sale (₹67.68 cr) and a subsidiary stake sale (₹11.74 cr) added another ₹79 crore. Excluding these, profit growth was modest. The first-quarter numbers also mark the first period since DCM Shriram signed a renewable power agreement with Serentica Renewables for 58 MW at its Bharuch complex, and management has guided for capex of ₹1,000–1,200 crore this year. Net debt of ₹1,767 crore and a debt-equity ratio of 0.23x leave the balance sheet well-positioned. The headline profit is a clean number, but the real test is what the concall reveals about demand and capex execution.
Questions answered
- What caused DCM Shriram's large profit surge in Q1?
- The surge was primarily due to a ₹474.30 crore income-tax reversal from a favourable Income Tax Appellate Tribunal ruling on a Section 80-IA claim. This is a one-time, non-operating gain.
- What were the exceptional items in the quarter?
- Exceptional gains included ₹67.68 crore from the sale of surplus land at Mokila and ₹11.74 crore from the sale of a 50% stake in subsidiary Shriram Polytech to Teknor Apex B.V., converting it into a joint venture.
- What is DCM Shriram's capex plan for this year?
- Capital expenditure for the current financial year (FY27) is projected at ₹1,000–1,200 crore.
- How is the company's balance sheet looking?
- Net debt stood at ₹1,767 crore at end-March 2026, with a debt-equity ratio of 0.23x.
- Is the underlying business growing?
- Consolidated revenue grew 9.5% YoY to ₹3,784.67 crore, indicating stable underlying performance. The market will look to the upcoming concall for forward guidance.
DCM Shriram Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on DCMSHRIRAM →- 28 Jul 2026 · 4:19 PM IST Tax reversal lifts DCM Shriram Q1 net to ₹693 cr
- today Tax credit lifts DCM Shriram Q1 net to ₹693 cr
- 24d ago DCM Shriram's ₹249 cr tax demand wiped out by ITAT order
- 39d ago DCM Shriram adds ₹18 cr for 10 MW renewable power at Bharuch
- 68d ago DCM Shriram call transcript: same story, no new twist