DCM Shriram Q3 | New labour code cuts into profit; revenue rises; declares dividend

DCM Shriram reported its December quarter results on Tuesday, January 20, posting a 19% decline in net profit to ₹212 crore for Q3FY26, compared with ₹262 crore in the same quarter last year.

The decline

came despite a healthy rise in revenue, which grew 13.8% YoY to ₹4,003 crore from ₹3,519 crore, reflecting strong demand across its business segments.

Operating performance remained robust, with EBITDA increasing 7.1% YoY to ₹531.5 crore, though margins narrowed to 13.3% from 14.1% in Q3 FY25.

The company also declared a second interim dividend of 180%, or ₹3.60 per share (face value ₹2), for FY26. The record date is January 24, 2026, and the payout will be made within 30 days.

The decline in profit was partly linked to the implementation of India’s four new labour codes, which consolidate 29 existing labour laws covering wages, industrial relations, social security, and occupational safety. Based on draft rules and available guidance, DCM Shriram made an additional provision of ₹55 crore for the quarter and nine months ended December 31, 2025.

Shares of DCM Shriram ended lower on Tuesday, January 20, by 1.96% at ₹1,110 on the NSE.

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