Dhabriya Poly. — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

Dhabriya Polywood Limited reported a landmark Q2 FY26 with record EBITDA, PAT, and EPS, driven by strong performance across its diversified product portfolio, including extruded PVC profiles, uPVC/aluminum windows & doors, and Modular Furniture. The company achieved significant margin expansion due to a favorable product mix, higher capacity utilization, and disciplined pricing. Management expressed confidence in sustaining growth momentum in H2 FY26, supported by a healthy order book and strategic investments in new product lines like WPC doors.

Highlights

  • Q2 FY26 Revenue: INR 67 crores, up 15.4% YoY.

  • Q2 FY26 EBITDA: INR 13.70 crores, up 48.9% YoY.

  • Q2 FY26 EBITDA Margin: 20.4%, expanded 460 bps YoY.

  • Q2 FY26 PAT: INR 7.60 crores, up 82% YoY.

  • H1 FY26 Revenue: INR 129.1 crores, up 10.6% YoY.

  • H1 FY26 EBITDA Margin: 20.2%, expanded 440 bps YoY.

  • Order book: Over INR 125 crores for windows, doors, and Modular Furniture, executable in 18-24 months.

  • FY26 Capex: INR 15-18 crores planned for new offerings like WPC doors.

Key financials

2 periods

Headline

  • Revenue
    ₹67 Cr
    YoY +15.4%
  • EBITDA
    ₹13.7 Cr
    YoY +48.9%
  • EBITDA Margin
    20.4%
  • PAT
    ₹7.6 Cr
    YoY +82%
  • PAT Margin
    11.4%

H1

  • Revenue
    ₹129.1 Cr
    YoY +10.6%
  • EBITDA
    ₹26 Cr
    YoY +41.3%
  • EBITDA Margin
    20.2%
  • PAT
    ₹14.2 Cr
    YoY +60.3%
  • PAT Margin
    11%

What they filed

Q1 FY27: revenue up 10.0%, net profit up 35.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue58 55 63 62 67 +15%66 +20%70 +10%68 +10%
EBITDA9 9 10 12 14 +49%14 +56%15 +44%16 +28%
Net profit4 4 5 7 8 +82%8 +101%8 +55%9 +35%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Modular Furniture
    18% Share of H1 Revenue13% Q2 Revenue Growth11.7% Q2 Margin
  • PVC Profile Distribution & uPVC/Aluminum Windows & Doors Fabrication
    82% Share of H1 Revenue
  • Fluted and Soffit Panels
    ₹25 Cr H1 Revenue

Order book

high confidence

Total value

₹125 Cr

as of 2025-09-30 quantified

Execution

executable over next 18 to 24 months

Composition

Mix 2 client types
  • Project Business 30%
  • Day-to-day B2B Distribution 60%

Share of order book by client type· partial disclosure (90% of the book)

Demand is good, and the company is confident of achieving better sales growth while maintaining margin profitability.

Source: Q&A

Capital allocation

medium confidence
  • Capex ₹15 Cr
    • Addition of new offerings, specifically WPC doors
    This year, we are projecting around INR15 crores to INR18 crores spending in this financial year.

Guidance & targets

Growth

  • Annual Revenue Growth Growth · next 3 to 4 years · High confidence 20-25%
    we have taken a target of growing by 20% to 25% for the next 3 to 4 years. So we are sticking to that vision even today also.

    — Hitesh Agrawal

  • H2 FY26 Revenue Growth Growth · H2 FY26 · Medium confidence 30% or closer to INR 150 crores
    Yes. We are also on the same track. We are also thinking in the same direction. And hopefully, we will have much better figures at the end of H2.

    — Hitesh Agrawal

  • FY26 Top Line Growth Growth · FY26 · High confidence 20%
    And we are quite confident that we should get that much figure.

    — Hitesh Agrawal

Profitability

  • EBITDA Margin Profitability · whole year (FY26) · High confidence 20%

    Previously 17-18% → 20%

    Yes, considering the results what we have got after implementing our product mix and better margin -- product offerings, we will definitely be achieving the EBITDA margin of 20% for the whole year.

    — Hitesh Agrawal

Product Sales

  • Fluted and Soffit Panels Revenue Product Sales · whole year (FY26) · High confidence INR 50 crores plus
    And for the whole year, we are targeting INR50 crores plus.

    — Hitesh Agrawal

Capacity Utilization

  • PVC Extrusion Capacity Utilization Capacity Utilization · end of next fiscal year (FY27) · Medium confidence 80-85%
    PVC extrusion, 80%, 85% that can we don't go for any further addition in the capacity. Maybe that end of the next fiscal year, we can be at that level.

    — Hitesh Agrawal

New Product Launch

  • WPC Door Product Launch New Product Launch · Q4 FY26 or Q3/Q4 FY26 beginning · High confidence Commercial launch

    Previously Q1 FY27 → Commercial launch

    And in the fourth quarter of this financial year, we are planning to launch this product. Earlier, it was in the first quarter of FY '27, but we have preponed the process and now the implementation is going on. So maybe by end of the third quarter or fourth quarter beginning, we will launch this product.

    — Hitesh Agrawal

New Store Openings

  • Studio Arezzo Outlets New Store Openings · H2 FY26 · High confidence 2 new outlets
    Yes, two Studio Arezzo outlets are being planned in H2.

    — Hitesh Agrawal

What to watch in Q3 FY26

WPC Door Product Launch

Q4 FY26
Current Production lines being implemented
Target Commercial launch

Why it matters

New product launch is a key growth driver and a focus of current capex, expected to contribute to future revenue.

And in the fourth quarter of this financial year, we are planning to launch this product.

Risks & concerns

  • Q3 Seasonal Softness / Extended Winter

    low

    Analyst asked about potential Q3 softness due to extended winter/construction halts like last year. Management stated no restrictions faced so far in H2 and is optimistic.

    Not at this stage. Even today also, we have already passed half of the quarter as there is no restrictions we have faced. So, activities are normally happening and we don't forecast at this stage. We are quite optimistic that this time there should not be any such issues may take place.

    Analyst downplayed

Q&A highlights

4 direct, 1 evasive
WPC Door Line Launch and Revenue Potential Direct
WPC doors production lines... going to be implemented in this quarter. And the product is expected to be launched commercially. And in the fourth quarter of this financial year, we are planning to launch this product. Earlier, it was in the first quarter of FY '27, but we have preponed the process and now the implementation is going on. So maybe by end of the third quarter or fourth quarter beginning, we will launch this product.

Provides a clear timeline for a new product launch and indicates preponement, suggesting faster execution and potential earlier revenue contribution.

Asked by Raghav

Revenue Growth vs. Competitors and Margin Focus Partial
not in line with our previous sharing about 20%, 25% growth. But see, as we have been mentioning continuously that we are more focused on improving our product mix and to go for the more premium products so as to cater the mid and upper class of customers.

Addresses analyst concern about lower growth compared to peers, clarifying the company's strategic shift towards higher-margin, premium products over pure volume growth.

Asked by Madhur Rathi

FY26 EBITDA Margin Target Direct
Yes, considering the results what we have got after implementing our product mix and better margin -- product offerings, we will definitely be achieving the EBITDA margin of 20% for the whole year.

Confirms an upward revision of the full-year EBITDA margin target to 20%, reflecting confidence in recent performance and product strategy.

Asked by Prasenjit Paul

Competition from Larger Players Direct
To be very frank, till now we have not come across with any kind of a competition with the new entrants. Revenue front pressure or say that non-achievement of the projected or targeted revenue growth is not linked to any kind of competition. It's probably because of the certain selective approaches which management has taken not to go for the high competitive or low-margin segments.

Management clarifies that growth slowdown is due to internal strategic choices (focus on premium segments) rather than increased competition from larger players.

Asked by Runit Kapoor

Order Book Transparency (DLF orders) Evasive
No, it's not like that we are not getting orders from DLF. We are regularly getting the orders. But yes, as a policy of the company, we have stopped sharing the order details on the public platform because what we have seen that certain competitors are misusing that information.

Management's decision to stop sharing specific order details due to competitive concerns raises transparency questions for investors, despite the offer for one-on-one meetings.

Asked by Lucky Banwani

NSE Listing Plans Partial
Yes, we mentioned in past also, we are having the plan. Once we are eligible for that -- NSE is having certain criteria. Maybe by end of this financial year, we will fulfill the criteria set by the NSE. So, once it is done, we will take the proper consultation from the related agencies, merchant banker and all, and we will go for that. That is in plan.

Confirms ongoing plans for NSE listing, with a potential timeline of fulfilling criteria by year-end, which could improve liquidity and visibility.

Asked by Lucky Banwani

Asset Turnover Ratio and Capex Strategy Partial
since our product is still a voluminous product, we need to have multiple units so far for the ease of the distribution and to cut down the logistic cost. So when we put the new plants and all there's a lot of capex does happen. So definitely, that ratio can't -- will not give you that much comfort because we need a lot of capex. And the second thing is we always prefer to have our own land and building rather going in for the rented premises. So that also cost us.

Explains why asset turnover might not be a primary focus due to the nature of the business requiring distributed manufacturing and owned facilities, impacting capital intensity.

Asked by Deepak Verma

Modular Furniture Margin Improvement Direct
As we have been mentioning earlier also that we are more focused in the furniture side that Studio Arezzo working and to get connected with the interior designers and PMCs or architects, so where we can provide the complete end-to-end solutions to the individual customers those who are working in bungalows and all. So that revenue is increasing. And since we are serving to the end-to-end customers, certain margins -- better margins are being maintained. And at the same time that better capacity utilization also is yielding to better margin.

Provides a clear rationale for the significant margin expansion in Modular Furniture, attributing it to a shift towards end-to-end solutions for premium clients and improved capacity utilization.

Asked by Dharmil

3 min read 7 chapters

Detailed narrative

Strong Q2 & H1 FY26 Financial Performance

Dhabriya Polywood Limited reported a landmark Q2 FY26, achieving record EBITDA, PAT, and EPS. Consolidated revenue for Q2 FY26 grew 15.4% YoY to INR 67 crores, while H1 FY26 revenue increased 10.6% YoY to INR 129.1 crores. This robust performance was attributed to the strength of its diversified product portfolio and focused execution across all business verticals, including extruded PVC profiles, uPVC/aluminum windows & doors, and Modular Furniture.

Significant Margin Expansion Driven by Strategic Product Mix

The company demonstrated substantial margin improvement, with Q2 FY26 EBITDA margin expanding by 460 basis points YoY to 20.4%, and H1 FY26 EBITDA margin reaching 20.2%. This was primarily driven by a strategic shift towards a favorable product mix, focusing on premium and design-led products, coupled with higher capacity utilization, disciplined pricing, and efficiency gains at the plant level. Management confirmed that the full-year FY26 EBITDA margin is targeted at 20%.

Healthy Order Book and Positive Market Outlook

Dhabriya Polywood maintains an unexecuted order book of over INR 125 crores for its window, door, and Modular Furniture divisions, with an execution timeline of 18-24 months. Approximately INR 32 crores of this order book is for Modular Furniture, with the remainder for windows and doors. Management expressed confidence in sustaining growth momentum in H2 FY26, citing a healthy order book, robust demand from both retail and institutional customers, and a favorable macro environment in the residential real estate and construction sectors.

Strategic Investments in New Offerings and Capacity

The company is making targeted investments in new product lines, with a planned capex of INR 15-18 crores for FY26, primarily for new offerings like the dedicated WPC door manufacturing facility. The commercial launch of WPC doors is now preponed to Q4 FY26 or early Q3/Q4 FY26. Current PVC profile extrusion capacity utilization is over 60%, with a target to reach 80-85% by the end of next fiscal year (FY27), while uPVC windows and doors utilization stands at 35-40%.

Modular Furniture and Geographical Expansion

The Modular Furniture division, encompassing Studio Arezzo and Dynasty Modular Furniture, contributed 18% to H1 FY26 revenue and recorded 13-14% growth in Q2. The significant margin improvement in this segment is attributed to providing end-to-end solutions for premium clients. The company is also expanding its retail footprint, with two new Studio Arezzo outlets planned for H2 FY26, including one in Bangalore, to deepen engagement with architects, interior designers, and retail customers.

Enhanced Distribution and Market Visibility

Dhabriya Polywood continues to expand its dealer and distribution network, unlocking new geographies while strengthening its presence in existing high-potential regions. The company actively participates in trade exhibitions across metro and Tier 2 cities to enhance market visibility and drive lead generation. Geographically, the Southern Belt is the major contributor to revenue, with strong presence also in East, West, Rajasthan, and Delhi NCR regions.

Commitment to Growth and Shareholder Value

Despite H1 FY26 revenue growth of 10.6% being below the previously indicated 20-25% annual target, management expressed confidence in achieving at least 20% top-line growth for FY26, implying significant acceleration in H2. The company is also pursuing plans for an NSE listing, aiming to fulfill the necessary criteria by the end of FY26, which could enhance liquidity and visibility for shareholders.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Capital Goods earnings calls