DCM Shriram Ltd. (NSE: DCMSHRIRAM) Q3 2026 Earnings Call dated Jan. 23, 2026
Corporate Participants:
Siddharth Rangnekar — Investor Relations
Ajay S. Shriram — Chairman & Senior Managing Director
Vikram S. Shriram — Vice Chairman and Managing Director
Analysts:
Poojan Shah — Analyst
Raj Vyas — Analyst
Ahmad Mada — Analyst
Rajakumar Vaidhyanathan — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the DCM Sriram Limited Q3FY26 earnings conference call. As a reminder, all participant lines will remain in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Siddharth Ragnekar from CDR India for opening remarks. Thank you. And over to you, Siddharth.
Siddharth Rangnekar — Investor Relations
Thank you, Ryan. Good evening and welcome to DCM Sriram Limited’s Quarter 3 and 9M FY 2026 Earnings Conference Call. Today we have with us Mr. Ajay Sriram, Chairman and Senior Managing Director, Mr. Vikram Shiram, Vice Chairman and Managing Director, Mr. Ajit Shriram, Deputy Managing Director and Mr. Amit Agarwal Group, CFO of the company. We shall commence with remarks from Mr. Ajay Sriram and Mr. Vikram Sriram. Members of the audience will get an opportunity to ask their queries to the management following these comments during the interactive question and answer session. Before we begin, please note that some of the statements made on today’s call could be forward looking in nature.
And a note to this effect has been included in the conference call invitation that has been circulated earlier and is also available on the stock exchange website. I would now like to invite Mr. Ajay Sriram to give us a brief overview. Over to you, sir.
Ajay S. Shriram — Chairman & Senior Managing Director
Thank you, Siddharth. Good evening ladies and gentlemen and a very warm welcome to all of you. Wishing all of you a very happy new year. I will begin with perspectives on the business dynamics and the strategic imperatives following which Vikram will share views on the financial perspectives. The global landscape is currently defined by what can be called a great realignment where we are witnessing a transition from globalization to regional resilience as well as new global trade realignments. Extreme geopolitical shifts, tightening financial liquidity, rapid technological disruption and the weaponization of trade through selective tariffs have created a volatile supply chain for industry.
Amid this turbulence, India is not unaffected but is resilient. Our nation’s trajectory, powered by a massive infrastructure build up and a demographic dividend that is actively converting into consumption and entrepreneurial energy provides us with a robust foundation to navigate external headwinds with strategic points. Recent reforms under the labor codes align us better as a country with global standards on social inclusion, health and safety of the workforce while driving scale and formalization of the economy. The RBI continues to actively complement the Government’s growth agenda through calibrated monetary easing, liquidity support and a strong focus on financial stability.
In a period marked by fluid market dynamics, DCM Shira remains firmly positioned to navigate the operating environment ahead with confidence. This strength is anchored in a diversified and strengthened product portfolio across our core businesses and a sustained emphasis on efficiency and cost discipline. As the business landscape continues to change, we are thoughtfully enhancing the agility of our operations to build resilience, manage risk and and reinforce our competitive position. Guided by a long term perspective, sustainability remains the bedrock of our decision making. It is a lens through which we evaluate every investment ensuring that we generate not just immediate returns but enduring multi generational value for all our stakeholders.
I shall now invite your attention to industry dynamics across our businesses. First is the chemicals business. Globally, caustic soda market is operating at around 80% utilization with worldwide annual installed capacity of approximately 106 million tonnes. While demand is strong in regions like Asia Pacific, industry is also facing challenges like fluctuating prices due to economic factors and geopolitical uncertainty and unsustainable energy costs. In regions like Europe, domestic caustic market fundamentals remain stable. Looking ahead, we see a two phased outlook. Growing structural demand from industrial end markets versus short term volatility from global supply chain disruptions. However, chlorine prices had been under pressure.
Caustic soda and chlorine downstream customers had been impacted by geopolitical factors including tariffs. Hydrogen peroxide demand was broadly stable underpinned by strong uptake from pulp and paper, textiles and water treatment. However, the domestic market remained over supplied with new facilities being commissioned and dumping from Bangladesh. Prices continue to be under pressure and industry is working to ensure that cheap imports do not disrupt domestic prices. Hydrogen peroxide plant performance has been good with improving utilization levels. Epichloro hydrogen demand stood firm supported by structurally strong consumption as well as increase in capacity of epoxy resins. Our ECS plant was commissioned in October 25th and the product has been well accepted in the market.
We are in the process of commissioning the balanced capacity and plants to stabilize. In the current quarter. We have started expanding our sales network including exports, our operations and industrial specialty chemicals are stabilizing well. The Government of India also levied anti dumping duty on liquid epoxy resin in November 25 which has started having impact which should start having impact in the coming quarter. Our project in aluminium chloride, calcium chloride at baruch and the 68 megawatt green power plant at Kota continue to progress as planned. The Niles Global as well as Indian PVC demand was muted in the key geographies and prices remained soft in the period.
PVC pricing continued to witness downward pressure given abundant imports and global oversupply. Despite BGTR finding justification for anti dumping duty on PVC raisin imports due to significant dumping and predatory pricing, the Ministry of Finance chose not to impose ADT resulting in a sharp fall in domestic PVC prices. Sugar and Ethanol Global sugar supply for sugar season 2526 is expected to be in surplus of 3.2 million metric tonnes mainly due to expected surplus production in India by about 2.2 million metric tons. The Indian sugar season 2526 is expected to end with a stock of 6.2 million metric tons with production estimate of 30.6 million metric tons after diversion of around 3.5 million metric tons.
For ethanol production consumption of 2.84 million metric tonnes and export allowance of 1.5 million metric tonnes. Current price is around Rs.4050 per quinter. On the ethanol front, OMC has received 1777 crore liters of ethanol offers for the 2526 season which is 1.7 times of the total requirement tendered for by OMCs. Allocation is led by grain based feedstock that is 72% and balance 28% from sugarcane which has reduced significantly as against 34% last year. Industry is urging government for support through increase in price msp, sugar, MSP and higher blending targets of ethanol as well as sufficient allocation for sugarcane feedstock to ensure mills viability and increasing costs of production.
The industry continues to contest the export levies on ethanol sent outside Uttar Pradesh with the matter being heard in the courts. Finista Building Systems a consumer facing ARC Fenester building systems is evolving from a product provider to a comprehensive lifestyle partner, expanding its footprint in the building segment category to capture a larger share of the customer wallet. Finessa continues to report healthy volume growth with margins undergoing a normalization driven by ongoing shifts in the product mix. The aluminum extrusion project at quota is running as per schedule and phase one is slated to be commissioned by the end of next quarter.
Moving on Agri inputs business portfolio comprises of Shriram Farm Solutions fertilizers and bioseed business. Shriram Farm Solutions the SFS business sustained momentum delivering healthy revenue growth performance was underpinned by growth in research Wheat seed where we have strengthened our market leadership by registering highest ever sales. The crop protection and specialty plant nutrition verticals continue to be benefited due to strong farmer acceptance of new molecules and products launched earlier. Innovation remains central to our strategy and we remain committed on deepening R and D collaborations and exclusive product partnerships to introduce differentiated next generation global products to the Indian farmers.
Fertilizer the urea business remains stable with continued emphasis on improving energy efficiency, optimizing production levels and maintaining tight control over fixed costs. Subsidy disbursements have been timely. Bioseed Due to extended monsoon and heavy rainfall at the beginning of Q3 farmers profitability in the Karib season reduced which ultimately led to reduced spending in the Ruby season and farmers going for shaped seed in wheat and mustard while good growth was witnessed in corn and paddock. I will now request Vikram to provide the financial perspectives. Vikram, over to you.
Vikram S. Shriram — Vice Chairman and Managing Director
Thank you. Good evening everyone. I will now take you through the Financial Highlights of Q3 and 9 months Financial Year 26 Net revenues net of excise duty for Q3 FY26 were at Rupees 3811 crores versus Rupees 3367 crores in Q3 FY25, an increase of 13% year on year driven by the chemicals, sugar and ethanol, Penestra and Sriram Farm Solutions businesses. PBDIT for Q3FY26 was at Rupees 560 crores versus Rupees 537 crores in Q3FY25, an increase of 4% year on year. Profit after tax was Rupees 213 crores after an exceptional item of Rupees 55 crores provided pursuant to the implementation of the new labor codes.
Chemicals the chemicals business reported an increase in revenue by 30% year on year led by caustic soda volumes that were up by 6% on account of better capacity utilization. New projects I.e. hydrogen peroxide, aluminium chloride, refined glycerine and epoxy also supported the revenue growth. ECUs were down by 4% as compared to last year. PVDIT was down by 8% due to higher fixed costs given business growth and stabilization costs of new plants partly offset by lower input prices and better operating efficiency. Demand for caustic soda remains robust although surplus capacity in the Indian market and subdued demand of chlorine derivatives continues to weigh on prices, especially chlorine vinyl.
The revenues were down by 13% year on year due to lower volumes of PVC and subdued prices of both both PVC and Kaga. It PBDIT was lower at rupees 19 crores as compared to rupees 29 crores last year due to lower prices despite better operating costs due to power and carbon material. Sugar and ethanol Sugar and ethanol Business revenue net of excise duty was higher by 15% year on year. Volumes of both domestic sugar and ethanol were up by 8% and 10% respectively. In both cases it is a timing difference. Prices of sugar were up by 7% while ethanol prices were down by 3% due to change in sales mix.
TBDIT for the segment came in at Rs. 204 crore as against Rupees 112 crores last year. In Q3FY26 there was a significant positive impact of Rupees 36 crores on account of reversal of provision provided in Q1 financial year 26 for retrospective levy of duty and ethanol exported outside state of UP Finesta Building Systems. Anestha’s revenues increased 20% 28% year on year with project vertical leading to the growth. PBDIT for the quarter was down at Rs. 35 crores as against 43 crores last year. This was due to product mix and higher fixed costs owing to investments in growing newer revenues platforms enhancing brand presence and acquisition related costs partially offset by increased in volume.
Sriram Farm Solutions Sriram Farm Solutions revenues increased by 7% year on year supported by higher volumes of research wheat and specialty nutrients. PBTIT for the quarter was down by 11% mainly due to moderation and research wheat margins owing to poor curry season leading to lower product prices. Fertilizer Fertilizer revenue was down by 2% year on year. Gas prices were down at $13.2 per MMBTU in Q3 FY26 versus $14.5 MMPU per MMBTU last year. Consequently, PBDIT was also down at rupees 20 crores versus rupees 29 crores last year. Outstanding fertilizer subsidy was rupees 116 crores as of 31st December as against 111 crores last year.
Bioseed revenues for the quarter increased by 16% year on year led by better volumes of corn and paddy prices were also better across the products. Further there was a positive impact of about 10 crores due to sale of vegetable, R and D germplasm and technology. Accordingly, PBDIT for the quarter was up by 73% year on year. Coming to the highlights of nine months FY26 for the nine months ended 31st December 25th, revenues net of excise duty was at Rupees 10,345 crores, an increase of 12% year on year contributed by all the businesses especially chemicals with slight moderation in sugar and ethanol.
PVDIT came in at rupees 1,294 crore an increase of 24% year on year led by Chemicals, Sugar and ethanol and Shriram Farm solutions businesses. The company’s net Debt stood at rupees 1084 crores as on 31st December 25, as against rupees 867 crore crores as on 31st December 24 and rupees 1395 crores as on March 31, 2025. The year on year increase was because of capital expenditure over the last year and acquisitions made during the period over March 25. The decline is primarily because of reduction in sugar inventory. Return on capital employed for December 25 came in at 14% similar to the levels of last year.
The board announced an interim dividend of 180% to rupees 56.14 crores. This took the total dividend announced for the year to 360% amounting to rupees 112.28 crores. As our major investments in the chemical segments are near completion, nearing completion, a strong balance sheet and healthy cash flow position as well as to explore value added chain opportunities aligning with our core businesses, we remain optimistic about sustaining steady and responsible growth in the years ahead. That concludes my remarks and I request the moderator to please open the forum for questions and answers. Thank you.
Questions and Answers:
operator
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, if you wish to ask a question please press star and 1. We take the first question from the line of Poojan Shah from Molecule Ventures.
Please go ahead.
Poojan Shah
Hi Simon everyone.
Ajay S. Shriram
Hello.
Poojan Shah
Hello. Yes sir. Yeah, yeah. My first question purchased the PGC side. So right now if you look into. So government has now decided that they won’t announce the add. So is there any possibility of MIP being implemented or is there any discussion being going on? Because PVC industry is suffering a lot and so what are your views on the same.
Ajay S. Shriram
So we are actually working with the government on this year right after the ADD was not done which was I think around the end of November. We’ve actually been to the government and various ministries to look at MIP and had meetings with the chemical ministry with The Commerce Ministry and in the Finance Ministry. And we talked about looking at MIP because if we take the last five years the average import price was about $800, $800, $820. But in the last three, four months it has come down to $600 $620. So we have taken up this issue MIP very actively with the government.
Our own ministry, the Petrochemical ministry, we have submitted a lot of data, they are also working on it. And we are really aggressively moving for a MIP coming in at a short period of time. The second point we are also working is on QCoS because ultimately a lot of the PVC is used for portable material like for filling water or soft drinks or others. And there is a need to balance out the quantity of residual chlorine in the vcm. Sorry, residual VCM in the pvc. So we are working with the government on that also to have QCOs implemented which will ensure that the right quality product is used for the portable products.
So we’ve had a discussion with the Jal Shakti ministry also and working with them. So we hope that with our steps we are taking for the rational benefits to the PVC industry, something will happen.
Poojan Shah
Is there any timeline you want to put in for the MIP or it is too far to understand this?
Ajay S. Shriram
Yeah, I think time frame is little difficult when we are dealing with government ministries. But we are actively on the job.
Poojan Shah
And we have been hearing the news about the China being revoking the wet benefits. So do you think that so that will help us in terms of inching up the realization because the benefit will be gone from first April and continuing with the same might be. We see a few four dumping a very severe dumping because might inventory get built up at a cheaper level? So is it is that possibility happening over industry?
Ajay S. Shriram
Well actually when the government administrator, the government of China announced the the removal of subsidy of 13% on PVC from the 1st of April it straight away had a positive impact on the industry and the prices have gone up c4 rupees already. We are hoping that once it’s implemented it will benefit a little more. So that is something we are actually hoping will bring an advantage. And if MIP comes along with it, it will be an advantage with the industry really needs.
Poojan Shah
Okay, got it. The last question pertains to the same is that in PBC we have been posterior 38 crore of PBIT and we have perform performance is very well compared to the impact of happening in the industry. So have we seen a easing of Pricing in RM that is benefited that helps in the PBIT or it was more link of the operational efficiency.
Ajay S. Shriram
So this was see one our power. Costs have come down. So as you know power is the almost 60, 70% cost of production. So we’ve seen reduction in our power cost and that’s continuous. If you see last one and a half years our power costs have been coming down. So that is one key reason other than that the other material, carbon materials which have been more or less stable. So it’s a power cost that has helped us.
Poojan Shah
Okay got I will join back in the. Thank you so much for answering.
Ajay S. Shriram
Thank you. Thank you.
operator
Thank you ladies and gentlemen. If you wish to ask a question please press star and 1. We take the next question from the line of Raj Vyas from Bolanza Portfolio. Please go ahead.
Ajay S. Shriram
I’m sorry we can’t hear you.
Raj Vyas
Am I audible? I Sir.
operator
Raj, please use your handset. If you are on a speakerphone
Raj Vyas
I’m using my handset. Am I audible right now?
operator
Your voice is very feeble.
Raj Vyas
Hello. Right now.
operator
This is better. Raj, please go ahead.
Raj Vyas
So I just wanted to understand what is the right now the demand scenario across the products and the impact of the US tariff that we are seeing because we are into the export challenging business as well. And earlier we have also highlighted about some kind of pressure in terms of.
Ajay S. Shriram
I’m sorry, I’m sorry to. I’m sorry to interrupt you. Could you kindly repeat that we couldn’t get the clarity was not okay, am.
Raj Vyas
I audible right now?
Ajay S. Shriram
Yeah, please, please repeat what you said.
Raj Vyas
So I just wanted to have a brief update with respect to the demand side scenario that we are having across the product and also any tariff impact that we are facing and that has impacted the performance in certain verticals.
Ajay S. Shriram
Which product are you talking about across the board?
Raj Vyas
Across the products.
Ajay S. Shriram
All our products, yes, all of them have different duties, different structures.
Raj Vyas
So that is moving as with the.
Ajay S. Shriram
Government, as I just mentioned about pvc what is already moving on previously that you are aware of what we are looking at? I think on the other products really on caustic soda there is some import duty which is there at a very low level that is moving over there on epoxy reasons. The government has implemented some anti dumping duty in November 2025 which is an advantage that industry. So government is aware but we need to. Government needs to actually take some more corrective action for some of the products which will make a difference to not only us but to many other factories or companies who are in similar businesses.
And we have also seen this margin pressure continuing for the Finistra vertical.
Raj Vyas
Right. And last quarter also you have mentioned that it was primarily because of the product mix and this time also it was because of product mix and higher fixed cost as well. So I mean ballpark number that we are looking at, for example to see where the margins can stabilize. And also what was the reason behind the order book going slightly down for the quarter?
Ajay S. Shriram
Yes, one coming on the margin reduction the margins as was mentioned in the chairman’s speech. And you rightly put it that there’s a product mix. But one, another reason that has happened is that one, our facade business is picking up. So there were larger volumes and revenue coming from facade and currently that business is we are entering the market. Right. And so we are not really wanting to earn any significant margins there. That is one. And then aluminium prices went up significantly. So that does impact, that has a lag impact because your older orders which were taken especially in retail, they may not have the linkage to price. So therefore, you know, that was one. Additional factor this quarter which led to reduction in margin. That is your answer to your first question. What was the second question please?
Raj Vyas
So any where we are seeing the stability in the margins, right? Because earlier it was in double digit margins, if I see on a yearly basis. Right. And this quarter it was, it has come to single digit. So any stability in margins where we can see that going forward? Yeah, this is the ballpark number that we, we can look forward to.
Ajay S. Shriram
Yeah. So see currently we are investing in growth, right. As I mentioned, facade doing well. Our aluminum extrusion plant will come online in next three, three to four months. So there is, you know, this business is in the investment in the growth phase right now. So you know, margins, I won’t say they’re under pressure. It’s like building up for a better margin going forward which should be there, let’s say six months down the line we should see margins inching up once all these, you know, investments that we’re doing, acquisition that we’ve done, looking at few more.
So all these things will add up, but then it’ll take one or two or two quarters at least for margins to add up and help grow as the volume goes. As the volume grows. Yeah. Okay. And the cost efficiencies come in.
Raj Vyas
Okay, understood. And coming to a question with respect to the acquisition. So on Hindustan Specialty chemicals that we have acquired, right. So we were expecting to break even the losses that we were having from that company by year end. So are we sticking to that timeline.
Ajay S. Shriram
So see we said it will take about a year. We acquired this business in end of August. So yeah, by, within, by end of the year we should be nearing, by the end of these 12 months since acquisition, we should be nearing the break even or maybe better than that.
Raj Vyas
Okay. And lastly, with respect to the demerger of our consumer facing products, any update that we can get?
Vikram S. Shriram
Yeah, so we are in the advanced stages. See this, it’s a, you know, the old organization, over 100 years old organization. So there are a lot of interlinkages and the idea is when we separate the companies there should not be any interlinkages. So those having clarity on that takes a bit of time. So we have large part of the clarity and we are moving in that direction. We have clarity internally. So we are moving in that direction.
Raj Vyas
Okay. And any kind of guidance before I like I end my questions, any kind of guidance on the top line or bottom line for the next three, two years down the line or three years down the line that we as a company are aspiring to reach that level.
Vikram S. Shriram
See, we as an organization have been making investments. You’ve seen we’ve invested close to about 4,5000 crores in last 3,4 years. And you know, and these should accrue to our cash profits going forward and you know, once they stabilize. So let’s say from FY27 onwards we should see a profit better and we’ll continue to grow. So our endeavor is to grow each of these businesses, add to the value chain in each of the businesses. So we continue to do that.
Raj Vyas
Okay, thank you so much.
Ajay S. Shriram
Thank you.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and 1. We take the next question from the line of Ahmed Mada from Unified Capital. Please go ahead.
Ahmad Mada
Thanks for the opportunity. Firstly, on taking the previous participant on the restructuring demerger spinoff, can you give broad sense of timelines? I think we announced this board meeting about I think nine or 10 months ago. So there has been a bit of time. So any broad timelines can give to finalize the structure.
Vikram S. Shriram
Ahmed? Our intention is to do it as early as possible. Frankly, as I said when answering the last question, we have lot of clarity now. Right. Certain loose ends just have to be tied. We hope to do it as early as possible. If all goes well, maybe next three. Four months we should be there. But we are pretty much, as I said, a lot of loose ends have been tied up. Few are left which we should complete the next three, four months hopefully.
Ahmad Mada
Can you elaborate a bit on what all things are sort of leading to sort of a delay. It helps us to appreciate, you know, what all, what are the moving sectors. Sure.
Ajay S. Shriram
So see, it comes from the fact that, you know, there are like for example, finesta business. It has its roots in Kota itself. Right now quota has particular kind of lease structure. So all those have to. We need to have clarity. Even with the government, we need to have clarity whether we can do that or not. So which means we need to speak to government channels and all that. So those are the kind of things which take time and have clarity. And at times, given that it is government, it takes a little more time and few such other things.
Ahmad Mada
Sure, got it, got it.
Ajay S. Shriram
And on the chemical business, we have been investing, we have invested a lot on ECH business and epoxy business specifically. If you can give some sense, where are we in epichlorohydrine as of now in terms of the product trials, approval, operating capacity, what stage we have reached so far and in foreseeable future, what kind of utilization are sort of fair to achieve or practical to achieve in next few quarters and in the current quarter, what sort of losses or the incremental stabilization costs we incurred for epichlorohydran business? Then I’ll come to epoxy second.
Vikram S. Shriram
So as you will be aware, the epichlorohydrin plant was commissioned in Q3 FY26. Two thirds of the capacity approximately has been commissioned. The plant is now under stabilization, ensuring the right efficiencies. And we expect that in. In the current quarter we will be doing some further work to ensure that we are able to run the plant steadily. And by the end of this quarter we expect to commission the remaining capacity and therefore after that run smoothly. The effort on the market side has been ongoing continuously, whether it is domestic markets or export markets. Our quality has been approved and accepted by the TIKA customers, largely the epoxy players themselves.
So we are very optimistic that by the end of this quarter we will run the plant efficiently and then ramp up the capacity soon after that.
Ahmad Mada
Okay, and will the balance capacity be commissioned by the end of this quarter or it will take more time?
Ajay S. Shriram
Yes, by the end of this quarter we expect the balance capacity to be. Commissioned. On epoxy business. Sort of. I’m assuming you will have consolidated this, the entire company for the first time in this quarter. So in terms of changes to be made in terms of processes, vendors, where are we in the overall process and what was the contribution from the Hindustan chemical entity in terms of revenue and profits? Or other losses in Q3 and
Ahmad Mada
where do we see it going in the next financial year?
Ajay S. Shriram
So the acquisition that we did in August 2025 has now been completed. We are in the process of integrating the operations, improving efficiencies, improving the safety practices standards, running the entire plant and the business along the lines that we expect. So that takes some time, some stabilization. What we are doing also is actually focusing more on the higher value part which is what is called formulated resin. So we have LER capacity and we have FR formulated resin capacity. So we are looking to grow that part of the business more aggressively. That of course takes time.
You have to get approvals from customers, work on application development, etc. Along with the R and D teams. But we expect that with that we will be able to grow the vertical and we expect a healthy profitability in the coming quarters. So in the next year, FY27 onwards, we should see a good profitability from this vertical.
Ahmad Mada
And can you please spell out the revenue strength losses number for epoxy business as well as ECS business? It helps us to understand, we can give a broad range. It helps us to understand how the base caustic business has done considering the volumes have been better compared to last year. Prices have declined year on year but sequentially it has been okay. So just to understand the base business little better, if you can give the numbers, broad range will be okay.
Ajay S. Shriram
Yeah, yeah. So revenue was in the range of around 90 to 100 crores for the quarter from the HSCL which is currently a subsidiary and they were marginal losses at EBITDA level. Okay.
Ahmad Mada
Any box for business? Sorry, ACH brand.
Ajay S. Shriram
ACH is. I don’t have the exact numbers. We’ll see each year ECH, we started. Only in the month of October. October, right. And in ECH, I think by now in the first week of January is when we’ve reached almost 100 tons per day which is like 2/3 of the capacity which we commissioned. However, we are still working on the efficiencies because it takes time. These are, you know one, we are. Doing it for the first time and you know, stabilizing the technology takes time. So we are not very efficient right now. So we are not making money in ECH right now. So but we do expect that by. Q4 and we should have solved a. Large part of our efficiency issues. So yeah, that’s where we are.
Ahmad Mada
Okay, got it. Moving to the sugar business. Considering there has been meaningful increase in the SAP prices for the season and the sugar prices have gone up compared to Last year but not enough. And you have been very vocal about it in both terms of making policy decisions as well as in investor calls. Going by the current season, would you like to provide some comments on how do you see the season upcoming season in terms of both volume production yields as well as profitability with higher cost?
Ajay S. Shriram
See on volume and production. Production as of now is good. It is a little better than last year also because the recoveries are better than last year. So that is encouraging. But what will be the total production? It’s a little early. I think by February is when we get more clarity on how the overall production will pan out. So that is one in terms of cost, you are right, cost will be higher. I mean Sriravik 3 rupees get passed on. Although the recovery is better then it’s a matter of what the product prices will be.
But then yes, we are actively pursuing government to look at minimum support price for sugar. If that comes up. It helps if something happens on sugar exports that can help and also on ethanol. So we are working a lot of lot of frameworks with the government, a lot of policy advocacy with the government. We should support prices. But as of now, yes, margin will be lower than what they’ve been till now at current prices.
Ahmad Mada
Last question on Pennista you explained it should take couple of quarters for margins to sort of stabilize and again improving with volumes based on whatever investments you have made. What what should be the normalized margin we should assume for Fenesta business In terms of EBITDA? Last year it was 1819. They said it was 1214. So will it be somewhere between the number or it will be like 13 14% kind of a number with expanded capacities and products.
Ajay S. Shriram
I would say this business should be around 14% once we have scale and backwardness. We have the scale and the cost advantages coming from backward integration. I feel we should be at around 14%. That’s what guidance I’ve been giving for last couple of quarters. That was never 18 19% margin business. Given what we were planning to do. Now that planning is taking shape. So we will continue to target around 14% margin. See the scale will build up, compensate for the margin as a percentage.
Ahmad Mada
Sure. Get it. Sure. Sorry, last question I had on the agri business. So assuming this season was slightly average for Rabi, are we sort of carrying any major inventories for farm solution business which sort of creates a problem later or next season? Something of that sort? Is it fair to assume or are we the channel is clean and we don’t have major inventories Would you like to provide any comments on that?
Ajay S. Shriram
Yeah, there are no channel inventory. See, our biggest business is wheat seed research. Wheat. And we are glad to say that we last year we did about 93,000 metric tons. This year we have increased by about 20% in terms of our sale to the farmers which is about 113, 114,000 tons. What is impacted is we targeted about 125, 130,000 tons. So that product could not be sold. And in wheat you can’t store so you have to sell it in the Mandi which goes below cost. So that is what has hit the profitability otherwise and you know, some bit of the margins overall.
But otherwise I would say the, the segment has done well in terms of volumes. So and just to answer your question, there is no pipeline of inventory. Okay. So. Okay, so basically whatever the, the, the incremental volumes have been cleared up and there is no baggage going into the next season.
Ahmad Mada
Perfect. Thank you so much.
Ajay S. Shriram
Thank you.
operator
Thank you. We take the next question from the line of Raja Kumar Vaidyanathan from RK Invest. Please go ahead.
Rajakumar Vaidhyanathan
Yeah, good evening, can you hear me?
Ajay S. Shriram
Yeah, we can hear you.
operator
Yeah, thank you.
Rajakumar Vaidhyanathan
Thanks for the opportunity. So the first question is on the caustic solar segment. I just want to know what is the outlook for this segment for the upcoming quarters this quarter you’ve done very good on the volume side, but the margins have dipped. So given this current situation, are you seeing any softness in demand? Can you just give some color on the outlook?
Ajay S. Shriram
So I think in the coming quarters we do expect a fairly stable to positive outlook for the caustic soda and chlorine business. The demand fundamentally is robust for us in India. India, a large percentage of the demand is domestic itself. As an industry, you know, we have moved from being net importers to net exporters, but bulk of the demand remains to be continues to be domestic demand. So we feel that, you know, while there are some large capacities coming up in the next one to two years, we expect, you know, stable to positive outlook in the coming quarters.
Rajakumar Vaidhyanathan
Okay, thank you sir. And sir, the second question is on the hydrogen peroxide segment. Can you give some outlook how is the pricing and the margins looking?
Ajay S. Shriram
So currently our plant itself, you know, is running at close to capacity as an industry in India. It is an oversupplied scenario at this point. There are other players also who have commissioned capacities. So prices are under pressure. So we will have to see how it evolves in the coming quarters. But we are working on various avenues to help Improve margins.
Rajakumar Vaidhyanathan
Okay. And moving to the sugar segment, I. Want to know what is the current recovery levels compared to last year and do you expect the recovery stock to be better in the upcoming quarter?
Vikram S. Shriram
Yeah. So compared to last year we are better by about 0.4, 0.5%. Now if the trend continues, yes. We should be better in the coming quarters as well.
Rajakumar Vaidhyanathan
So what is the absolute number?
Vikram S. Shriram
I would have the number right away, but we are better by that number.
Rajakumar Vaidhyanathan
Okay. And you expect this to improve further in the current quarter, right?
Vikram S. Shriram
Yeah, if the trend continues, yes. See these are climate driven. So we do expect it should continue.
Rajakumar Vaidhyanathan
Okay. Okay. And the last question is, you recently. Signed a JV or MOU with Bayer India. So I want to know what is the short to medium term benefits we will be getting in terms of sales and margins?
Ajay S. Shriram
So see, the MOU with Bayer is largely to explore what we can do together. So currently like there are one or two products, one product we have already tied up in the crop protection space which we will be launching for Bayer. So it’s like those kind of things, more futuristic to see how both the parties can come together. With their technical prowess, their product prowess and our distribution prowess, we can work together and create value for the farmers.
Rajakumar Vaidhyanathan
Okay. And are you looking at furthering this relationship or it will be only restricted to whatever you have mentioned the press?
Ajay S. Shriram
Yeah, as of now it is more, you know, transaction based. If something comes up, we may. We are open to looking at working to together as well.
Rajakumar Vaidhyanathan
Yeah. My question is, will there be any outsourcing opportunities with there. Will you be supplying to their entities overseas?
Ajay S. Shriram
No, as of now there is no such plan.
Rajakumar Vaidhyanathan
Okay. Okay. Thank you so much.
Ajay S. Shriram
Thank you.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question, Please press star and 1. We take the next question from the line of Poojan Shah from Molecule Venture. Please go ahead.
Poojan Shah
Thanks for the opportunity. Sir, my question pertains to the caustic soda. So. In caustic soda division we have seen bit of a sweep in terms of ecu. So just wanted to understand it is because of the chlorine or it is just broad realization of costing has been fallen down. So there is act.
Ajay S. Shriram
The question is on the. Can you kindly repeat the question please?
Poojan Shah
So in terms of. Yeah, carry on.
Ajay S. Shriram
Carry on with the question please.
Poojan Shah
Yeah, so just wanted to understand the caustic soda part. So in caustic soda have the realization has been cooled off or if the ECU has been cooled because of the impact of chlorine.
Ajay S. Shriram
There is no significant reduction I would say in ECUs they are marginal 3, 400, 500 rupees here and there. So I don’t think I would attribute to any particular factor. In month on month it keeps varying whether chlorine goes down or cost of the price goes down or the flakes prices are better. So there is no fundamental shift is. Where I’m coming from.
Poojan Shah
Got it. And so amplifying the question in terms of China is implementing this vet. So do we see the benefit in caustic as well?
Ajay S. Shriram
So to the best of our knowledge China not implemented this for caustic soda, it is for PVC and for other products. So there won’t be a direct impact. But the PVC and the caustic soda industries are closely linked. So we’ll have to see you know how it plays out the impact of this on PVC and therefore on caustic.
Poojan Shah
Okay, Got it. Got it Sir, I just want to understand the pvc. So let’s suppose if we consider if ADD gets implemented the China duty was ranged around 122 to 232 per dollar per ton. So now if MIP comes up so it’s, it’s, it’s equivalent significance of, of the duty. So then we are not going to apply for add. Right? Because MIP might be for a limited time so till that time we might refile for ADD or it won’t be that case.
Ajay S. Shriram
I think the approach to MIP is a priority right now because ADD has already been rejected once by the government and the ADD approval process is fairly long. It doesn’t happen as fast as we hopefully MIP will. So MIP is the focus right now. We’ll see what the market situation is like after that and then take up the ADD work also if necessary.
Poojan Shah
Okay. And if MIP gets implemented it would be for six months.
Ajay S. Shriram
We don’t know. We don’t know. We’ve asked for a longer period. We don’t know what the government will do.
Poojan Shah
Thank you sir.
Ajay S. Shriram
Thank you.
operator
Thank you ladies and gentlemen. If you wish to ask a question Please press star and 1. Ladies and gentlemen, we take that as the last question and conclude the question and answer session. I now hand the conference over to the management for their closing comments.
Ajay S. Shriram
Thank you ladies and gentlemen. Thank you very much for your participation in our earnings conference call. As new trade barriers emerge across developed economies the imperative for Indian corporates is towards realignment. True progress lies in building internal strength through sharper cost focus, operational efficiencies, continuous innovation and deeper technological adaptability at DCM Shriram we are building this resilience through number one, relentlessly optimizing our operational core to ensure we remain lean and agile. By focusing on efficiencies, we are working towards ensuring that our margins remain healthy. Number two strengthen the value chain in our businesses and number three, digital transformation as technology is the backbone of our evolution and we are leveraging data driven insights and automation to enhance our adaptability.
Efficiencies and tuition sharpen our decision making. Environmental stewardship is no longer a peripheral goal, it is a primary embedded. It is firmly embedded in our investment philosophy. We are making our businesses greener that deliver long term value to all our stakeholders. Thank you very much. Once again.
operator
Thank you on behalf of DCM Sriram limited that concludes this conference call. Thank you for joining us. And you may now disconnect your lines.