Dhabriya Poly.

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.

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%.

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.

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%.

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.

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.

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.