DCM Shriram Fine Chemicals is a pure-play manufacturer of chemical intermediates - the building blocks that go into antibiotics, crop-protection chemicals, dyes and fragrances - carved out as an independent company in late 2025 when the chemical undertaking of DCM Shriram Industries was demerged and vested into it. Its shares listed in February 2026, and it entered independent life with a debt-free balance sheet after retiring all outstanding borrowings. The recurring approach is to take a core set of chemical platforms - phenylglycine derivatives and chloro-toluene products - and push them into multiple end-use industries while steadily moving up the value chain into proprietary, greener pharmaceutical intermediates developed with in-house technology. # Business segments A single chemical-intermediates engine serving pharmaceuticals, agrochemicals and industrial-specialty customers - built on two manufacturing units, a handful of chemistry platforms, and a deliberate shift toward proprietary green-chemistry products. ## 1. Chemical intermediates: the molecule factory behind antibiotics, crop protection and industrial specialties **The company makes the reactive chemical building blocks that other manufacturers turn into finished drugs, herbicides, dyes and fragrances - and it is now commissioning its own patented enzymatic route to a key antibiotic intermediate.** - **Two factories, one chemistry backbone** - manufacturing runs through two units, Daurala Organics and Daurala Chemical Industries, producing intermediates from phenylglycine (PG) and chloro-toluene chemistry platforms for six end-use industries: pharmaceuticals, agrochemicals, optical brighteners, dyes, perfumery and paints. - **The antibiotic supply chain starts here** - a flagship product is D-Phenylglycine Methyl Ester Hydrochloride (D-PGME.HCl), the chiral intermediate that forms the active side chain in semi-synthetic cephalosporin antibiotics like Cefaclor and Cephalexin. The company developed the process technology for this intermediate entirely in-house, from laboratory-scale feasibility through to market validation. - **A proprietary green-chemistry upgrade under construction** - a next-generation pharmaceutical intermediate that enables an enzymatic synthesis route for Cephalexin is being commissioned, described as a “green chemistry” approach, alongside a conventional chemical-synthesis route in an existing facility expected to be operational by end-2026. This gives the company two distinct products in the pharmaceutical green-chemistry space. - **Contract manufacturing for a statin MNC** - beyond its own catalogue, the company undertakes contract manufacturing for a leading multinational making statin intermediates, adding a steady institutional revenue stream alongside its merchant sales. - **Diversified demand buffers pharma cycles** - when pharmaceutical demand weakened, the company shifted volumes into alternative markets - dyes, optical brighteners and fragrances - using the same chemical platforms, which helped compensate for the slowdown. It also held market share and margins in agro-intermediates even as competitors added new chloro-toluene capacity. - **Export reach with a natural hedge** - roughly ₹25 crore of revenue came from outside India, mainly Europe, though export activity was disrupted in the final quarter when foreign buyers had to re-register vendor details after the company name change following the demerger. Annual fixation of export product prices and imported raw-material costs provides a natural hedge against currency swings. - **Waste becomes a product line** - the company treats and recovers waste streams to yield usable materials that are either fed back into operations or sold as value-added products, and it is installing a wastewater recycling plant based on advanced oxidation, membrane systems, UV treatment and TEDOX technology sourced from a specialist Indian R&D firm. # Group structure and partners **The company holds one subsidiary that came with the demerger, and its customer base is concentrated - two buyers account for nearly half of revenue.** - **A wholly owned foods subsidiary** - Daurala Foods & Beverages Private Limited became a subsidiary during the year as part of the Scheme of Arrangement, though the core chemical business remains the sole operating focus. - **Two customers drive 44% of revenue** - during FY26, two customers each contributed 10% or more to total revenue, together accounting for 43.66% of the top line, which means the order book is sensitive to the health of a small number of large buyers.