Skip to content

    DDev Plastiks

    DDEVPLSTIK
    Chemicals·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

    5

    • 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

    2

    • 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.

    What Changed2

    vs Q2 FY26

    Guidance items8 → 18 (+10)Risks discussed4 → 5 (+1)

    Key financials

    Single quarter

    09 metrics
    1. 01Revenue₹769 Cr+23%YoY
    2. 02EBITDA₹79 Cr
    3. 03EBITDA Margin10%
    4. 04PAT₹52 Cr
    5. 05PAT Margin7%

    Capital allocation

    2
    CategoryHeadline
    Capex

    ₹110 crores

    entirely through internal accruals

    Debt

    Debt disclosed

    Guidance & targets

    18
    CategoryTargetPriority
    Revenue
    Revenue
    ₹4,500-5,000 crores
    		High
    Revenue
    Revenue Growth
    12-13%
    		High
    Revenue
    HFFR Revenue
    ₹250-300 crores
    		High
    Profitability
    EBITDA Margin
    10-12%
    		High
    Volume
    Volume Growth
    10-15%
    		High
    Capacity
    Total Capacity Addition
    130,000+ tons
    		High
    Capacity
    HFFR Capacity Addition
    15,000 tons
    		High
    Capacity
    PVC Capacity Addition
    25,000 tons
    		High
    Capacity
    Optional PVC Capacity Addition
    5,000-10,000 tons
    		Medium
    Capacity
    XLPE Capacity Addition
    60,000 tons
    		High
    Capacity
    Optional XLPE Capacity Addition
    24,000 tons
    		Medium
    Capacity
    HFFR Capacity (FY26)
    10,000 tons
    		High
    Capacity
    HFFR Capacity (FY27)
    10,000 tons
    		High
    Market Share
    XLPE Market Share (11kV-132kV)
    beyond 50%
    		High
    Product Development
    132kV Certification for Commercial Use
    achieved
    		High
    Market Size
    HFFR Market Size
    100,000 tons per annum
    		High
    Market Growth
    Indian Wire and Cable Market Growth
    12%
    		High
    Industry Capex
    Polymer Compound Suppliers Capex
    ₹13,200 crores
    		High

    132kV Cable Certification for Commercial Use

    End of FY26 / Early FY27
    CurrentProduct ready, awaiting customer trials/approvals
    TargetCertification 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.

    How to verify

    guidance_and_targets[metric='132kV Certification for Commercial Use']

    Risks & concerns

    5
    RiskSeverity

    Geopolitical conflicts impacting export orientation

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

    medium

    Raw material price volatility

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

    medium

    Sluggish Q2 due to monsoon season

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

    low

    US tariffs impacting exports

    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

    medium

    Competition from UAE FTA

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

    low

    Q&A highlights

    8

    “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

    2 min read6 chapters

    Detailed Narrative

    01

    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%.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.