Srigee DLM Announces Strong FY26 Performance, Plans Major Capacity Expansion

Srigee DLM reported a 37.16% year-on-year increase in Profit After Tax (PAT) for the full fiscal year 2026, reaching ₹6.87 crore from ₹5.01 crore in FY25. The company also saw a 6.15% rise in total income to ₹75.76 crore.

Reader Takeaway: Robust H2 growth and margin expansion signal operational strength, offset by a slight EPS dip and demand concerns.

What just happened

Srigee DLM announced its audited financial results for the half-year (H2) and full fiscal year 2026. The company achieved a full-year PAT of ₹6.87 crore on total income of ₹75.76 crore. Notably, the second half of the fiscal year (H2 FY26) showed significant acceleration, with Total Income growing 54.30% year-on-year to ₹54.34 crore and PAT surging 104.69% to ₹5.53 crore.

Why this matters

The strong second-half performance indicates improving operational efficiency and cost discipline. The company's PAT margin expanded to 9.06% in FY26 from 7.02% in FY25. This financial improvement, coupled with strategic expansion plans, suggests a positive outlook for future revenue and profitability.

The backstory

In the previous fiscal year (FY25), Srigee DLM reported a PAT of ₹5.01 crore on total income of ₹71.37 crore. The company has been focused on cost management and operational improvements, which appear to be yielding results in the latest fiscal year.

What changes now

Srigee DLM is embarking on a significant growth phase. A 5x capital expenditure (capex) plan is underway to boost production capacity. Additionally, a new manufacturing facility is being established at Ecotech-10, Greater Noida. The company has also launched 'Polymos', a polymer compounding brand targeting higher-margin segments.

Risks to watch

Management highlighted a moderate demand environment during parts of the year, which remains a key watch point. Furthermore, while overall profit increased, the Earnings Per Share (EPS) saw a marginal decline of 2.21% to ₹11.50 in FY26 from ₹11.76 in FY25. Investors will need to monitor if this EPS trend reverses.

Peer comparison

Information regarding specific peer comparison is not available in the provided filing.

Context metrics (time-bound)

• FY26 Total Income: ₹75.76 crore (+6.15% YoY)
• FY26 EBITDA: ₹9.23 crore (+23.08% YoY)
• FY26 PAT: ₹6.87 crore (+37.16% YoY)
• FY26 PAT Margin: 9.06% (vs 7.02% in FY25)
• FY26 EPS: ₹11.50 (-2.21% YoY)
• H2 FY26 Total Income: ₹54.34 crore (+54.30% YoY)
• H2 FY26 PAT: ₹5.53 crore (+104.69% YoY)

What to track next

Investors should closely watch the execution progress of the new manufacturing facility in Greater Noida and the 5x capex plan. Monitoring sales performance in higher-margin segments and the overall demand environment will be crucial.