Revenue and Operating Performance
Over the period from March 2019 to March 2025, DCM Shriram Inds' net sales exhibited a gradual upward trend, rising from ₹1,689 crore in 2019 to ₹2,051.59 crore in 2025. The peak revenue was recorded in March 2023 at ₹2,350.92 crore, followed by a slight decline in subsequent years. Total operating income mirrored this pattern, indicating consistent core business activity without significant other operating income contributions.
Raw material costs, a significant component of expenditure, increased steadily from ₹1,017.34 crore in 2019 to ₹1,243.84 crore in 2025, reflecting inflationary pressures and possibly higher input prices. The purchase of finished goods showed a notable reduction, reaching zero in 2025, which may suggest a strategic shift towards in-house production or inventory management optimisation.
Employee costs rose moderately from ₹134.80 crore in 2019 to ₹202.36 crore in 2025, indicating investment in human resources aligned with business growth. Other expenses remained relatively stable, hovering around ₹430 crore in recent years.
Operating profit before depreciation and interest (PBDIT) excluding other income showed variability, peaking at ₹224.47 crore in 2024 before easing to ₹198.78 crore in 2025. Including other income, operating profit reached ₹230.44 crore in 2025, down from ₹247.02 crore in 2024, signalling some pressure on operational margins.
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Profitability and Margins
Profit before tax (PBT) showed a recovery trend after a dip in 2023, rising from ₹90.55 crore to ₹154.93 crore in 2025. Correspondingly, profit after tax (PAT) increased from ₹59.76 crore in 2023 to ₹100.21 crore in 2025, though it remains below the 2019 and 2020 highs. The consolidated net profit followed a similar trajectory, reaching ₹101.47 crore in 2025.
Operating profit margins excluding other income improved from 7.11% in 2019 to 9.82% in 2025, with a peak of 10.92% in 2024. Gross profit margins also showed enhancement, rising from 6.81% to 9.64% over the same period. However, PAT margins fluctuated, peaking at 5.72% in 2020 before settling at 5.01% in 2025, indicating some volatility in bottom-line profitability.
Earnings per share (EPS) reflected these profit trends, with adjusted EPS at ₹11.66 in 2025, down from ₹13.26 in 2024 but significantly higher than the ₹6.91 recorded in 2023. The book value per share increased steadily from ₹64.32 in 2020 to ₹103.34 in 2025, signalling growth in shareholder equity.
Balance Sheet and Financial Position
Shareholders' funds expanded from ₹559.54 crore in 2020 to ₹898.95 crore in 2025, supported by rising reserves which grew from ₹542.14 crore to ₹881.55 crore in the same timeframe. Total liabilities increased from ₹1,608.98 crore in 2020 to ₹2,310.77 crore in 2025, reflecting higher borrowings and current liabilities.
Long-term borrowings decreased significantly from ₹177.82 crore in 2020 to ₹44.38 crore in 2025, indicating deleveraging efforts. Conversely, short-term borrowings rose from ₹352.12 crore to ₹477.48 crore, suggesting a shift in debt structure. Total debt remained relatively stable around ₹520 crore in recent years.
On the asset side, net block value increased from ₹431.06 crore in 2020 to ₹651.25 crore in 2025, reflecting capital investments. Current assets also grew, reaching ₹1,530.50 crore in 2025, with inventories and sundry debtors showing steady increases. Cash and bank balances improved notably to ₹71.75 crore in 2025 from ₹30.69 crore in 2024.
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Cash Flow and Liquidity
Cash flow from operating activities showed considerable variation, with ₹151 crore generated in 2025 compared to ₹76 crore in 2024 and a peak of ₹225 crore in 2021. Investing activities consistently reflected cash outflows, averaging around ₹70 crore annually, indicative of ongoing capital expenditure.
Financing activities mostly involved cash outflows, particularly in 2023 and 2021, signalling debt repayments or dividend distributions. The net cash inflow was positive in 2025 at ₹14 crore, improving from ₹10 crore in 2024 and reversing negative trends seen in earlier years.
Overall, the company has maintained a stable liquidity position, with closing cash and cash equivalents rising to ₹33 crore in 2025 from ₹18 crore in 2024, supporting operational needs and financial flexibility.
Conclusion
DCM Shriram Inds has experienced a period of steady growth in revenue and shareholder equity, alongside fluctuating profitability and margin pressures. The company’s efforts to manage debt and invest in capital assets are evident, with a balanced approach to financing and operational cash flows. While recent years have seen some volatility in earnings, the overall trajectory suggests resilience and potential for sustained performance improvement.
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