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DCM Shriram Boosts Green Power for Bharuch Plant
12 Mar
Summary
- Company to invest up to ₹87 crore for renewable energy project.
- Capacity to increase by 48 MW, including 30 MW round-the-clock power.
- Net profit declined 19% in Q3FY26 despite revenue growth.
DCM Shriram's board has approved an equity investment of up to ₹87 crore in special purpose vehicles (SPVs) to establish a renewable energy project for its Bharuch plant. This strategic move aims to secure an additional 48 MW of renewable power, featuring 30 MW of round-the-clock supply at a 75% capacity utilization factor.
The capital expenditure for related infrastructure development is set at ₹130 crore. Upon completion, expected around June 2027, the Bharuch plant's total renewable energy capacity will rise from 50.4 MW to 98.4 MW.
Separately, the company reported a 19% decline in net profit for the third quarter of FY26, reaching ₹212 crore, contrasting with ₹262 crore in the prior year. This occurred despite a 13.8% year-on-year revenue increase to ₹4,003 crore.
EBITDA saw a 7.1% rise to ₹531.5 crore, though profit margins narrowed slightly. A portion of the profit decrease is attributed to an additional provision of ₹55 crore made due to the implementation of India's new labor codes.
