Ddev Plastiks Industries Limited — Q1 FY26 earnings call

Call held 12 Aug 2025

Management summary

DDev Plastiks reported a robust Q1 FY26, with revenue growing 23% YoY to ₹769 crores and strong profitability. The company saw an 11% increase in production volumes and maintained high capacity utilization. Strategic capacity expansions are underway for PVC, HFFR, and XLPE, funded by internal accruals, to meet rising demand in the wire and cable sector and achieve ambitious long-term growth targets.

Highlights

  • Revenue grew 23% YoY to ₹769 crores, driven by strong demand and a 9% increase in average selling price.

  • EBITDA margin stood at 10% (₹79 crores) and PAT margin at 7% (₹52 crores), demonstrating consistent profitability.

  • Production volumes increased by 11% YoY to 52,000 tons, with capacity utilization reaching 87%.

  • The company is on track with its FY26 capex plan of ₹110 crores, adding 5,000 tons of PVC capacity in Q1 and planning further HFFR and XLPE additions.

  • Long-term targets include achieving ₹4,500-5,000 crores revenue by FY30 and expanding XLPE market share from 30-33% to over 50% in high-voltage segments.

Concerns

  • Export orientation faced challenges due to geopolitical conflicts, though products were redirected to the domestic market.

  • Q2 is generally expected to be sluggish due to the monsoon season, potentially keeping performance at par with Q1.

Key financials

  1. Revenue ₹769 Cr +23%YoY
  2. EBITDA ₹79 Cr
  3. EBITDA Margin 10%
  4. PAT ₹52 Cr
  5. PAT Margin 7%
  6. Production Volume 52,000 tons +11%YoY
  7. Capacity Utilization 87%
  8. Average Selling Price ₹148/kg +9%YoY
  9. EBITDA per ton ₹15,300/ton

What they filed

Q1 FY27: revenue up 28.6%, net profit up 23.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue580 661 737 769 680 +17%733 +11%766 +4%989 +29%
EBITDA64 70 76 73 64 +0%76 +9%74 −3%91 +25%
Net profit45 47 52 52 47 +4%48 +2%55 +6%64 +23%
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.

Capital allocation

  • Capex ₹110 Cr entirely through internal accruals
    • Capacity addition for compounds (5,000 MT in Eastern part)
    • PVC, HFFR, and XLPE capacity expansion
    Our capex plans remain on track with an expected investment of INR110-odd crores in this financial year. (Arihant Bothra) and As of now, since it is a staggered plan which we have done, so we are funding it from our internal accruals. (Arihant Bothra)
  • Debt Debt disclosed
    And in Q1, finance cost was around INR5.5 crores. (Guru Darshan) and See, on a net basis, our run rate is around INR4 crores to INR4.5-odd crores. (Arihant Bothra)

Guidance & targets

Revenue

  • Revenue Revenue · by FY30 · High confidence ₹4,500-5,000 crores
    On a conservative basis, we aim to achieve a revenue of about INR4,500 crores to INR5,000 crores by FY '30.

    — Arihant Bothra

  • Revenue Growth Revenue · long-term objective · High confidence 12-13%
    and revenue growth of 12% to 13%.

    — Rajesh Kothari

  • HFFR Revenue Revenue · by FY28 · High confidence ₹250-300 crores
    Revenue contribution, more or less you can think that on a broader basis we are anticipating INR250 crores to INR300 crores by FY '28.

    — Arihant Bothra

Profitability

  • EBITDA Margin Profitability · long-term · High confidence 10-12%
    We also expect to maintain a robust EBITDA margin in the range of 10% to 12%.

    — Arihant Bothra

Volume

  • Volume Growth Volume · long-term objective · High confidence 10-15%
    We remain firmly committed to our long-term objective, targeting volume growth of approximately 10% to 15%

    — Rajesh Kothari

Capacity

  • Total Capacity Addition Capacity · next 3 years · High confidence 130,000+ tons
    So on a consolidated basis, we are talking about close to 1, 30,000-plus tons of capacity being added.

    — Arihant Bothra

  • HFFR Capacity Addition Capacity · next 3 years · High confidence 15,000 tons
    So as far as the capacity addition is concerned, we are adding when we talk about 3 years horizon close to 15,000-plus tons of HFFR.

    — Arihant Bothra

  • PVC Capacity Addition Capacity · this financial year · High confidence 25,000 tons
    We have already added 25,000 tons of PVC as a plan for this financial year.

    — Arihant Bothra

  • Optional PVC Capacity Addition Capacity · as required · Medium confidence 5,000-10,000 tons
    And if required, we may add another 5,000 to 10,000 tons.

    — Arihant Bothra

  • XLPE Capacity Addition Capacity · next 1.5 years · High confidence 60,000 tons
    On the XLPE front, on the cable, specifically the transmission and distribution part, we are planning to add close to 60,000 tons of capacity in this next 1.5 years' time.

    — Arihant Bothra

  • Optional XLPE Capacity Addition Capacity · next 3 years · Medium confidence 24,000 tons
    And that may also increase to another 24,000 tons by next 3 years of time.

    — Arihant Bothra

  • HFFR Capacity (FY26) Capacity · this year (FY26) · High confidence 10,000 tons
    So you can anticipate that this year, we'll be having -- this will we will be closing around 10,000 tons of HFFR

    — Arihant Bothra

  • HFFR Capacity (FY27) Capacity · next year (FY27) · High confidence 10,000 tons
    and then the following year, we'll be adding another 10,000 tons

    — Arihant Bothra

Market Share

  • XLPE Market Share (11kV-132kV) Market Share · long-term · High confidence beyond 50%

    From 30-33% today

    where our current market share stands at anything between 30% to 33%, we want to take this market share beyond 50%.

    — Rajesh Kothari

Product Development

  • 132kV Certification for Commercial Use Product Development · end of FY26, early FY27 · High confidence achieved
    we would endeavor on getting certification for 132 kV for making it ready for commercial use by end of FY '26, early FY '27.

    — Rajesh Kothari

Market Size

  • HFFR Market Size Market Size · by 2030 · High confidence 100,000 tons per annum
    which we see with the natural progress, whatever it is showing at the moment should reach close to 100,000 tons per annum kind of a thing by 2030.

    — Rajesh Kothari

Market Growth

  • Indian Wire and Cable Market Growth Market Growth · CAGR · High confidence 12%
    The Indian wire and cable market is projected to grow at the rate of CAGR of 12%, in line with this growth.

    — Rajesh Kothari

Industry Capex

  • Polymer Compound Suppliers Capex Industry Capex · long-term · High confidence ₹13,200 crores
    Leading manufacturers are expected to undertake capital expenditure of approximately INR13,200 crores.

    — Rajesh Kothari

What to watch in Q2 FY26

132kV Cable Certification for Commercial Use

End of FY26 / Early FY27
Current Product ready, awaiting customer trials/approvals
Target Certification for commercial use

Why it matters

Unlocks higher-margin, high-voltage cable market and enhances credibility for lower voltage segments.

Currently, our XLPE offering cater up to 72 kV with the planned capacity expansion, we will be entering the 220 kV segments also. Apart from the capacity, we would endeavor on getting certification for 132 kV for making it ready for commercial use by end of FY '26, early FY '27.

Risks & concerns

  • Geopolitical conflicts impacting export orientation

    medium

    Export orientation encountered challenges due to geopolitical conflicts, but products were redirected to the domestic market.

    Management acknowledged

  • Raw material price volatility

    medium

    Volatile raw material prices are managed through a pass-through mechanism to maintain per-ton EBITDA.

    Management acknowledged

  • US tariffs impacting exports

    medium

    New 50% tariffs on Indian exports to the US pose a challenge, but DDEVPLSTIK has US certification for some products and can leverage proxy exports.

    Analyst acknowledged

  • Sluggish Q2 due to monsoon season

    low

    Q2 is generally sluggish due to monsoon, and performance is expected to be at par with Q1.

    Management acknowledged

  • Competition from UAE FTA

    low

    Duties are not yet zero, and large players' pricing is not solely driven by duty advantages; impact is more from capacity additions.

    Analyst downplayed

Q&A highlights

6 direct
Q1 FY26 Revenue Growth Breakdown Direct
So this 23% growth has been contributed by 2 things. One, as we have already informed with regards to volume, volume has grown by almost 13-odd percent as compared to the Y-o-Y quarter 1 FY '25. When we see the average selling price, the first quarter average selling price was around INR136 and this quarter, we have achieved average selling price of INR148 though as compared to the previous quarter, it is a marginal increase of 50 basis points. But when we compare with the year-on-year quarter basis, it is close to 9%. So that is what contributing close to 23% of the growth.

Clarified the drivers of strong revenue growth, attributing it to both volume and average selling price increases.

Asked by Archana Gude

132kV Cable Certification and Revenue Impact Partial
So here, the important factor, 132 kV, the revenue generation we can expect somewhere in FY '27. And as we go higher in the voltage rating, the time which is taken for ramping up the volumes is quite long because you have to get the first the cables made, then cables need to get approved. And then the customers will start lifting the product in a small quantum because it is a measure of trust building.

Provided a timeline for revenue generation from 132kV products and explained the phased approach to market penetration due to approval processes and trust-building.

Asked by Archana Gude

PVC Margin Improvement with Value-Added Products Direct
So building wire per se delivers better margin. So we are getting ready for that opportunity, which will be offered to us the moment UltraTech and Adani start their building wire activity because we are very strong. ... That is why we are adding capacity. And those products are definitely delivering margin of 7% to 8%.

Confirmed the potential for higher margins (7-8%) from value-added PVC products, particularly in the building wire segment, and the strategy to capitalize on new market entrants.

Asked by Bhargav

XLPE Competition from UAE FTA Direct
So here, the duties have not gone to zero yet because they are going down with a fraction of percentage every year basis. That is one part. And secondly, the people who are supplying from Burj UAE, they are big giants and then their pricing is not driven by this duty advantage. Most of the time, they will try to pocket this duty advantage for themselves rather than passing it on to the customer.

Addressed concerns about increased competition due to the UAE FTA, clarifying that duty reductions are gradual and major players' pricing strategies are not solely driven by duty advantages.

Asked by Bhargav

US Market Focus Amid Tariffs Partial
Yes. So definitely, U.S.A. market is a big market and it will remain our focus because today, the challenge is that the cables which are being exported from India to U.S. market, yes, those will face a challenge and that also for a limited period of time because people will find ways to retain that market because they have created this for themselves with a lot of effort. ... So we can supply to our product to a customer who is based in, say, for example, UAE. UAE has got a lower rate of duty while exporting to the cables to U.S. market.

Explained the strategy for maintaining focus on the US market despite tariffs, leveraging existing US certifications and indirect export channels through customers in other regions.

Asked by Bhargav

Capacity Addition Timelines and Contribution Direct
Yes. So this is already in fragment which is already happening. As we explained, 5,000 tons is already added in the Eastern Coast. And now PVC and HFFR already in process, probably by third quarter, PVC and HFFR will be completely installed and those capacities also will be running. 5,000 tons of PVC is already installed in the Eastern part of the country in this quarter, and that will be running by next week with their commercial operations. So as far as this PVC, HFFR and XLPE initial plant capacities are all in line.

Provided specific updates on the progress and timelines for PVC, HFFR, and XLPE capacity additions, confirming that initial phases are on track.

Asked by Archana Gude

EBITDA Per Ton vs. Percentage Margin Direct
So we see the numbers on the basis of EBITDA per ton and that too on the gross basis including the other income because most of the other incomes are part of our business. They are not separate. So if you see that the last year's average was close to INR15,100 and this first quarter has been at close to INR15,300. ... So I'll just add a clarification. We always look at EBITDA margins as per ton basis. And our focus is to improve the margin on per ton basis basically.

Clarified the company's focus on EBITDA per ton as a more accurate measure of profitability improvement, especially when average selling prices fluctuate, and confirmed an increase in this metric.

Asked by Archana Gude

Confidence in Securing Orders from New Entrants (Adani, UltraTech) Direct
No, it is not monopolistic situation. Definitely, we do not have monopoly on those products. But see, every product gives you an indirect monopoly. It is the kind of the trust somebody would have on the product. ... Why? Because they feel safe that, yes, if we are buying this product, we will not face any hiccup in BIS certification because product is above standard, okay? So this is the reason we are confident that these 2 customers also will be our customer for first few years. And with both of them, we are already in touch.

Explained the basis for confidence in securing business from new large entrants like Adani and UltraTech, citing product quality, trust, and existing relationships, rather than market monopoly.

Asked by Bhavik Shah

2 min read 6 chapters

Detailed narrative

Strong Q1 FY26 Performance Driven by Volume and Price

DDev Plastiks reported a robust Q1 FY26 with revenue growing 23% year-on-year to ₹769 crores. This growth was primarily fueled by a 13% increase in production volumes, reaching 52,000 tons, complemented by a 9% rise in average selling price to ₹148 per kg. The company achieved an EBITDA of ₹79 crores (10% margin) and PAT of ₹52 crores (7% margin), with capacity utilization at a healthy 87%.

Strategic Capacity Expansion Underway

The company is executing a significant capacity expansion plan, with ₹110 crores allocated for capex in FY26. This includes the addition of 5,000 tons of PVC capacity in Q1, with further PVC and HFFR capacities expected to be installed by Q3 FY26. Plans also include increasing XLPE capacity in the second half of FY26, aiming for a total addition of over 130,000 tons across PVC, HFFR, and XLPE over the next three years, funded entirely by internal accruals.

Focus on High-Voltage XLPE and Value-Added Products

DDev Plastiks is strategically focusing on high-voltage XLPE compounds, aiming for 132kV certification by end of FY26 or early FY27. This move is expected to significantly expand their market share in the 11kV to 132kV segment from the current 30-33% to over 50%. The company also anticipates improved margins from value-added PVC products, particularly in the building wire segment, and the strategy to capitalize on new market entrants like UltraTech and Adani.

Long-Term Growth Targets and Market Outlook

The company has set ambitious long-term targets, aiming for revenues of ₹4,500-5,000 crores by FY30, with an EBITDA margin in the 10-12% range. They project a volume growth of 10-15% and revenue growth of 12-13% as long-term objectives. The Indian wire and cable market is expected to grow at a CAGR of 12%, providing a strong tailwind for DDev Plastiks' expansion plans.

Navigating Geopolitical and Raw Material Headwinds

Despite geopolitical conflicts impacting export orientation, DDev Plastiks successfully redirected products to the strong domestic market. The company manages raw material price volatility through a pass-through mechanism, ensuring per-ton EBITDA remains stable. While acknowledging the potential for a sluggish Q2 due to the monsoon season, management expects overall performance to remain consistent.

EBITDA Per Ton as Key Profitability Metric

Management emphasized focusing on EBITDA per ton rather than percentage margins, especially given fluctuating raw material prices and subsequent pass-through. They reported an improvement in EBITDA per ton to ₹15,300 in Q1 FY26, up from ₹14,000 in Q1 FY25, indicating underlying profitability strength despite percentage margin fluctuations.

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

More Chemicals earnings calls