Dhabriya Poly. — Q4 FY26 earnings call

Call held 27 May 2026

Management summary

Dhabriya Polywood Limited reported a strong financial performance for FY26, with consolidated revenue growing 12.5% to INR264.48 crores and PAT surging 67.2% to INR30.14 crores. This was driven by significant margin expansion, with EBITDA margin reaching 20.6%. The company secured its highest-ever order book of INR174 crores and is investing INR100 crores in capex for new verticals and capacity expansion, targeting 30% CAGR revenue growth long-term despite some execution delays in FY26.

Highlights

  • Consolidated revenue for FY26 grew 12.5% YoY to INR264.48 crores, demonstrating robust growth.

  • EBITDA margin expanded significantly by 460 basis points to 20.6% in FY26, reflecting strong operating leverage and product mix improvements.

  • PAT for FY26 increased by 67.2% to INR30.14 crores, leading to an EPS of INR27.85.

  • The company achieved its highest-ever order book of INR174 crores, providing excellent revenue visibility.

  • New verticals like aluminum windows and glazing have already secured over INR50 crores in orders, indicating strong market traction.

Concerns

  • FY26 revenue growth of 12.5% fell short of the initial 20-25% target, primarily due to deferred execution of large projects in Maharashtra and Delhi NCR.

  • Working capital temporarily increased in FY26 due to strategic raw material stocking and faster supplier settlements amidst the West Asia crisis, though expected to normalize in FY27.

Key financials

  1. Consolidated Revenue ₹264.48 Cr +12.5%YoY
  2. EBITDA ₹54.59 Cr +45.6%YoY
  3. EBITDA Margin 20.6%
  4. Profit Before Tax ₹40.67 Cr +65.3%YoY
  5. Profit After Tax ₹30.14 Cr +67.2%YoY
  6. EPS ₹27.85

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

  • Polymer-based products (PVC & UPVC)
    84% Revenue Share16.6% PBT Margin
  • Modular Furniture
    ₹43 Cr Revenue16% Revenue Share9% PBT Margin
  • Fluted Panel
    ₹54 Cr Revenue FY26₹38 Cr Revenue FY25
  • uPVC Window Division
    ₹60 Cr Revenue FY26

Order book

high confidence

Total value

₹174 Cr

as of 2026-03-31 quantified

Execution

100% of the order book will be executed in the next 18 to 24 months.

Composition

Mix 3 products
  • uPVC windows and doors 48.3%
  • Modular Furniture 19.5%
  • Aluminum windows and facade 32.2%

Share of order book by product

Cancellations & deferrals

  • deferred: Deferred execution of large project orders, primarily in Maharashtra and Delhi NCR, led to a shortfall in FY26 revenue targets.
The order book is at a historical high, providing excellent revenue visibility, despite some project deferrals in FY26.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹100 Cr New plan — Board approval for strategic expansion · Partially borrowed, but majorly through internal accruals.
    • Expansion of PVC and WPC profile extrusion lines
    • Building dedicated manufacturing infrastructure for aluminum glazing and window division
    • Modernizing and automating existing lines
    • WPC door vertical
    • WPC wall and ceiling profiles extrusion
    • Jaipur facility for aluminum windows and doors ₹35 Cr
    The Board has approved INR100 crores strategic capital expenditure program to be deployed over financial year '26 to '28. This is the most significant capex program in the company's history. During financial year '26, we have already deployed approximately INR27 crores of capex towards expansion of PVC and WPC profile extrusion lines, building dedicated manufacturing infrastructure for the aluminum glazing and window division, and modernizing and automating our existing lines.
  • Debt Debt disclosed
    See, in the monetary terms I can't say you, but yes, that current level of our debt-to-equity ratio is 0.56. So, it definitely it will not reach 0.75.
  • Liquidity Liquidity disclosed INR50 crores plus cash generation in FY26, providing comfort for capex funding.
    See, partially it will be borrowed, but majorly it will be through internal accruals also considering the last financial year around INR50 crores plus cash generation was there from the operations itself once we had the depreciation.

Guidance & targets

Revenue

  • CAGR Revenue Growth Revenue · long term · High confidence 30%
    Based on our current visibility, we are targeting approximately 30% CAGR revenue growth over the long term while maintaining sustainable EBITDA and PAT margins.

    — Digvijay Dhabriya

  • Revenue from existing PVC profile extrusion capacity Revenue · future (at 85% utilization) · Medium confidence more than INR450 crores
    But yes, with the existing capacity itself, we can surely achieve more than INR450 crores of revenue for the profile extrusion itself.

    — Hitesh Agrawal

  • Contribution from WPC door and false ceiling wall paneling division Revenue · current financial year (FY27) · Medium confidence INR15 crores
    Yes, for the current financial year, we are expecting around INR15 crores of minimum contribution from the WPC door and false ceiling wall paneling division

    — Hitesh Agrawal

  • Contribution from aluminum windows and facade division Revenue · current financial year (FY27) · Medium confidence INR40 crores
    and maybe somewhere around INR40 crores from this aluminum windows and facade division.

    — Hitesh Agrawal

  • Revenue from new capacity (FY27) Revenue · FY27 · Medium confidence INR55-60 crores
    this current FY27, we are projecting somewhere around INR55 crores to INR60 crores revenue addition.

    — Hitesh Agrawal

  • Fluted Panel Division Revenue Revenue · next two years · Medium confidence INR100-200 crores
    And expecting the level of the INR100 crores to INR200 crores in next two years.

    — Hitesh Agrawal

Profitability

  • EBITDA Margin Profitability · longer run · High confidence 20%+
    And last four quarters, our margins have been regularly improving, and we are quite confident that 20% plus EBITDA margin is sustainable in longer run also.

    — Hitesh Agrawal

Capex

  • Capex Deployment Capex · FY26 to FY28 · High confidence INR100 crores
    The Board has approved INR100 crores strategic capital expenditure program to be deployed over financial year '26 to '28.

    — Digvijay Dhabriya

Volume

  • Volume Growth (overall) Volume · current financial year (FY27) · High confidence 20%
    So, from the volume side, 20% we are optimistic that minimum 20% growth will be there.

    — Hitesh Agrawal

What to watch in Q1 FY27

Normalization of working capital cycle

FY27
Current Temporarily increased in FY26
Target Improvement and normalization

Why it matters

To ensure efficient cash flow management and reduce capital intensity.

As a result, working capital temporarily increased during the year. We expect this cycle to improve materially during FY27 as inventories are consumed and supplier payment cycle normalizes.

Risks & concerns

  • Deferred execution of large project orders

    medium

    Deferred execution of large projects in Maharashtra and Delhi NCR caused FY26 revenue growth to fall short of targets, but management states it's a timing issue, not loss of business.

    Our top-line results fell short of our initial revenue targets. This shortfall was primarily driven by deferred execution related to the project supply for some of the large project orders.

    Management acknowledged

  • Temporary increase in working capital

    medium

    Working capital increased in FY26 due to strategic raw material stocking and faster supplier payments in response to the West Asia crisis, but is expected to normalize in FY27.

    As a result, working capital temporarily increased during the year. We expect this cycle to improve materially during FY27 as inventories are consumed and supplier payment cycle normalizes.

    Management acknowledged

  • Raw material price volatility

    low

    Raw material prices (e.g., PVC resin, aluminum) are volatile, but the company employs pass-through clauses and strategic procurement to mitigate margin impact.

    So, in fact, after this West Asia crisis, we have already revised our price list three times considering the price hikes of all the raw materials and all.

    Management acknowledged

Q&A highlights

8 direct
Segmental revenue and margin breakup Direct
current breakup of the last financial year's revenue, say approximately 84% revenue came from our polymer-based product PVC and UPVC, and 16% around INR43 crores came from the modular furniture.

Provides clarity on the revenue contribution and profitability of core business segments.

Asked by Harshit Khatka

Sustainability of 20%+ EBITDA margins Direct
And last four quarters, our margins have been regularly improving, and we are quite confident that 20% plus EBITDA margin is sustainable in longer run also.

Reassures investors about the durability of the improved profitability, attributing it to product mix and operational efficiency.

Asked by Harshit Khatka

Reasons for FY26 revenue growth shortfall Direct
Yes, see, that growth was not up to our expectations primarily due to the supplies were deferred for couple of the projects, large projects, especially in the Maharashtra and one or two projects in Delhi NCR also from the buyer side basically.

Explains the deviation from prior guidance and clarifies that it's a timing issue, not a loss of business.

Asked by Vishvender Singh

Contribution of new capex to top-line in FY27 Direct
Yes, for the current financial year, we are expecting around INR15 crores of minimum contribution from the WPC door and false ceiling wall paneling division, and maybe somewhere around INR40 crores from this aluminum windows and facade division.

Quantifies the expected revenue impact from new product lines and capacity additions in the upcoming fiscal year.

Asked by Vishvender Singh

Impact of raw material price volatility on margins and pricing strategy Direct
So, in fact, after this West Asia crisis, we have already revised our price list three times considering the price hikes of all the raw materials and all.

Addresses concerns about margin sustainability amidst external shocks and explains the company's pass-through pricing mechanism and strategic procurement.

Asked by Keshav Garg

Competitive landscape and market for new WPC door products Direct
WPC doors, WPC wall and ceiling panel, definitely there is no direct competition as of now.

Highlights the competitive advantage in new product categories and the rationale for market entry, emphasizing the product's features and market demand.

Asked by Mahesh Atal

Working capital cycle with increasing project business Direct
So that cash flows are regularly maintained from the stage payments, and mobilization advance, and on delivery, and partial execution and full execution, all those things.

Clarifies how the company manages working capital in project-based businesses, addressing potential concerns about cash flow intensity.

Asked by Madhur Rathi

Reasons for working capital deterioration in FY26 Direct
Yes, see, it was a strategic decision taken by the management to have the benefit of the pricing, that better pricing, and at the same time the continuous supply. This activity was done in the last two months of the financial year, where we have paid off all our suppliers in single sort looking at the that Middle East crisis, war crisis, that disruption in the supply chain and all those things.

Provides a clear explanation for the temporary increase in working capital, linking it to a strategic decision to mitigate supply chain risks.

Asked by Aditya Jain

2 min read 6 chapters

Detailed narrative

Strong Financial Performance in FY26 Driven by Margin Expansion

Dhabriya Polywood Limited delivered a robust financial performance in FY26, with consolidated revenue growing 12.5% year-on-year to INR264.48 crores. This growth was accompanied by significant profitability improvements, as EBITDA increased by 45.6% to INR54.59 crores, and PAT surged by 67.2% to INR30.14 crores. The EBITDA margin expanded by 460 basis points to 20.6%, while PAT margin improved from 7.7% to 11.4%, primarily due to better product mix, manufacturing efficiencies, and disciplined execution.

Strategic Capex Program and New Vertical Expansion

The Board approved a strategic capital expenditure program of INR100 crores to be deployed over FY26-28. In FY26, approximately INR27 crores were already deployed towards expanding PVC and WPC profile extrusion lines, building infrastructure for the aluminum glazing and window division, and modernizing existing lines. The company is actively diversifying into new verticals such as WPC doors, WPC wall and ceiling panels, and aluminum windows, doors, and glazing systems, which are expected to significantly expand its addressable market.

Record Order Book and Revenue Visibility

The company achieved its highest-ever order book of INR174 crores, providing strong revenue visibility for the next 18-24 months. This order book is composed of INR84 crores from uPVC windows/doors, INR34 crores from Modular Furniture, and INR56 crores from the newly added aluminum windows and facade division. The aluminum windows and glazing division has already secured over INR50 crores in orders, indicating strong market traction for the new offerings.

FY26 Revenue Shortfall and Working Capital Management

Despite strong profitability, FY26 revenue growth of 12.5% fell short of the initial 20-25% target due to deferred execution of large project orders, particularly in Maharashtra and Delhi NCR. The company also experienced a temporary increase in working capital during FY26, attributed to strategic raw material stocking and faster supplier settlements in response to the West Asia crisis. Management expects the working capital cycle to normalize in FY27 as inventories are consumed and supplier payment terms return to normal.

Long-Term Growth and Margin Sustainability

Dhabriya Polywood is highly optimistic about its future, targeting approximately 30% CAGR revenue growth over the long term. Management is confident in maintaining sustainable EBITDA and PAT margins, with EBITDA margins expected to remain above 20%. This confidence is underpinned by a refined product mix, improved operating leverage, and enhanced manufacturing efficiencies. The new product verticals are expected to contribute significantly to this growth, with INR55-60 crores in additional revenue projected from new capacities in FY27.

Strategic Brand Portfolio and Competitive Edge

The company maintains a diversified brand portfolio, with 'Polywood' serving as the umbrella for polymer-related products, 'Dynasty' for B2B projects, 'Studio Arezzo' for end-to-end interior solutions, and 'D-Stona' for stone substitute products. This strategy allows for product bifurcation and direct client connection. In new segments like WPC doors and aluminum windows/facade, the company leverages its existing builder relationships and a cost-plus pricing model with pass-through clauses to manage raw material price volatility and maintain competitiveness.

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