DCW

DCW reported a Q4 FY25 revenue of ₹538 crores, a 13% decline from Q4 FY24, but a 13% sequential increase. For the full year FY25, revenue reached ₹2,000 crores, up 7% from ₹1,872 crores in FY24. EBITDA for Q4 FY25 stood at ₹62 crores, a 10.5% dip YoY, while full-year FY25 EBITDA grew 12% to ₹217 crores. The company's PAT for FY25 doubled to ₹30 crores, driven by strong specialty chemicals performance and reduced finance costs.

The company is actively pursuing a strategic shift towards higher-margin specialty chemicals. In FY25, the Specialty Chemicals segment's revenue grew 43% to ₹526 crores from ₹368 crores in FY24, with its EBITDA increasing 41% to ₹189 crores. Management highlighted that approximately 90% of the company's profit in the last fiscal year came from the specialty segment, underscoring its growing importance for margin resilience and stability.

The Basic Chemicals segment faced significant headwinds, with its FY25 revenue declining 2% to ₹1,463 crores and EBITDA dropping 59% to ₹19 crores. This decline was primarily attributed to severe pricing pressures on Synthetic Rutile exports to China and a 7% dip in Soda Ash prices. The influx of cheaper imports, particularly from China, due to lower ocean freights and trade tensions, intensified competitive pressures on domestic pricing.

DCW is on track with its 30,000 tons C-PVC capacity expansion at Sahupuram, with the first 20,000 tons expected to be commissioned by September 2025 and the remaining 10,000 tons by March. An alternate energy project has been commissioned and is being scaled up to optimize energy costs and reduce carbon footprint. The Soda Ash plant, which operated at 80% capacity in FY25 due to mechanical issues, is expected to achieve 95,000 tons production in FY26, a 20% growth.

The company achieved a significant deleveraging milestone, bringing its net debt-to-EBITDA ratio to 0.97x in FY25, down from 1.4x in FY24. Finance costs reduced by 8.5% to ₹67 crores in FY25. The outstanding term loan decreased by ₹44 crores to ₹366 crores, despite a new borrowing of ₹80 crores for C-PVC capex. Cash and cash equivalents also increased by ₹46 crores to ₹215 crores, indicating a healthy liquidity position.

Management acknowledged the persistent volatility in the global chemical industry and muted demand in Western economies. They expressed hope for government intervention, specifically the implementation of anti-dumping duties on PVC, to ensure a level playing field for domestic manufacturers. Despite near-term market fluctuations, the company remains confident in India's structural growth and its strategy to focus on value-added specialty chemicals with higher margins and customer stickiness.