Financial Performance Summary

Q2 FY27 Consolidated Results:

  • Net Revenue (net of excise duty): ₹3,977 crore, up 22% YoY from ₹3,272 crore in Q2 FY26
  • PBDIT: ₹319 crore, down 22% YoY from ₹408 crore in Q2 FY26
  • Profit After Tax (PAT): ₹106 crore, down from ₹159 crore in corresponding quarter last year
  • Revenue growth driven by Chemicals & Vinyl, Sugar & Ethanol, Fenesta Building Systems and Fertilizer businesses
  • PBDIT decline primarily reflects higher input costs in Chemicals and lower earnings in Agri input businesses
  • Previous year's quarter included one-time positive impact of ₹76 crore towards incentive from Government of Gujarat in chemicals business and ₹15.5 crores in Sugar business on account of upward revision in power rates

H1 FY27 Consolidated Results:

  • Net Revenue (net of excise duty): ₹7,541 crore, up 15% YoY from ₹6,534 crore in H1 FY26
  • PBDIT: ₹683 crore compared with ₹734 crore last year
  • Reported PAT: ₹799 crore, up from ₹273 crore, including favourable tax adjustment of ₹474.3 crore and exceptional gains of ₹79.4 crore
  • Effective normal PAT: ₹253 crore

Business Segment Performance

Chemicals Business:

  • Revenue grew 47% to ₹1,343 crore
  • Supported by improved ECU realisations and contributions from advanced materials value chain
  • Commissioning of Aluminium Chloride plant and partial commissioning of Calcium Chloride plant at Bharuch strengthened downstream integration

Vinyl Business:

  • Revenue increased 20% to ₹234 crore
  • Improved volumes and realisations supported profitability

Sugar & Ethanol Business:

  • Revenue increased 10% to ₹1,023 crore
  • PBDIT grew 85% to ₹62 crore
  • Higher domestic sugar prices and improved ethanol margins supported performance despite lower sugar sales volumes
  • Ethanol sales volumes increased 24% during the quarter (timing difference)

Fenesta Building Systems:

  • Revenue: ₹344 crore, up 22% driven by higher volumes in Projects vertical
  • PBDIT: ₹49 crore, up 15%
  • Commissioning of Phase I of Aluminium Extrusion Plant at Kota marks milestone in backward integration strategy

Shriram Farm Solutions:

  • Revenue: ₹423 crore compared with ₹471 crore last year, reflecting lower volumes across key categories
  • Launched eight new products during H1 FY27, including five developed through own R&D capabilities

Fertilizer Business:

  • Revenue increased 40% to ₹502 crore, supported by higher realisations reflecting higher gas prices
  • PBDIT grew 25% to ₹25 crore

Bioseed Business:

  • Revenue: ₹73 crore compared with ₹86 crore in Q2 FY26
  • Performance impacted by adverse climatic conditions and demand challenges in India and Philippines

Dividend Declaration

  • Board announced an interim dividend of 200% amounting to ₹62.38 crores

Management Commentary

Mr. Ajay Shriram, Chairman & Senior Managing Director and Mr. Vikram Shriram, Vice Chairman & Managing Director provided joint commentary:

  • Highlighted global economic challenges including transformative power of AI and realignment of global trade partnerships
  • Noted heightened geopolitical friction, rising protectionism, and US-led tariff structures straining global supply chains
  • Emphasized India's resilience due to structural reforms, strong domestic demand and competitive workforce
  • Chemicals business delivered reasonable performance despite volatile global environment and supply-demand imbalances
  • Chlor-alkali witnessed healthy utilization while Advanced Materials is stabilizing
  • Downstream integration and cost-competitiveness initiatives reached key milestones
  • Sugar and Ethanol businesses navigating shifting landscape with domestic sugar prices remaining firm
  • Consumer-facing businesses demonstrated resilience amidst market and climatic volatility
  • Company maintaining robust balance sheet, comfortable leverage, and ample liquidity to absorb market volatility
  • Sustainability remains intricately linked to operational DNA through ESG roadmap across energy transition and resource efficiency

Strategic Investments and Growth Initiatives

Completed Commissioning Milestones (Q2 FY27):

  • 100 TPD Aluminium Chloride plant at Bharuch
  • Partial commissioning of 133 TPD Calcium Chloride plant at Bharuch
  • Phase I of Fenesta's Aluminium Extrusion Plant at Kota
  • 68 MW (peak) captive renewable energy capacity for Kota (commissioned October 2026)

Investment Projects Pipeline:

1. Fenesta Aluminium Extrusion Plant, Kota: Phase II expected completion in Q3 FY2027

2. Calcium Chloride Project, Bharuch: Balance second line of 133 tonnes per day project expected completion in Q3 FY2027

3. Proposed Salt Works Acquisition: Acquisition of salt works with total capacity of 208,000 tonnes per annum expected completion in Q3 FY2027

4. Captive Renewable Energy, Bharuch: 58 MW (peak) renewable energy project under group captive SPV arrangement expected completion in Q1 FY2028

5. Solar Renewable Energy Plant, Kota: 40 MW (peak) solar renewable energy plant expected completion in Q1 FY2028

6. Formulated Resins Capacity Expansion, HSCL: Capacity expansion of 36,000 tonnes per annum expected completion in Q2 FY2028

7. Waste Utilisation, Kota: Installation of filter presses at cement plant for waste utilisation expected completion in Q3 FY2028

8. Specialty Polymer Compounds: Manufacturing lines at joint venture Shriram Teknor Limited expected completion in Q3 FY2028

9. Caustic Capacity Debottlenecking: Debottlenecking towards improving energy efficiency at Bharuch and Kota expected completion in Q4 FY2028

These initiatives align with the Company's strategy of strengthening cost competitiveness, downstream integration, resource efficiency and long-term sustainable growth.