Ddev Plastiks Industries Limited — Q2 FY26 earnings call

Call held 17 Nov 2025

Management summary

DDev Plastiks reported a positive Q2 FY26, with 17% YoY revenue growth and stable 11% EBITDA margins, despite challenges from monsoon and US tariffs impacting volumes. The company is actively expanding its capacity with new PVC, HFFR, and Sioplas additions, and is on track with its FY26 capex plan. Management remains optimistic about future demand, guiding for FY26 revenue of INR2,850-2,950 crores and maintaining EBITDA margins of 10-12% through strategic product mix management and operational efficiencies.

Highlights

  • H1 FY26 revenue grew 20% Y-o-Y to INR1,450 crores, with PAT at INR99 crores.

  • Q2 FY26 revenue grew 17% Y-o-Y to INR680 crores, with EBITDA at INR75 crores and PAT at INR47 crores.

  • EBITDA margin remained resilient at 11% for both H1 and Q2 FY26, and EBITDA per ton improved sequentially to INR15,559.

  • Successfully commissioned a new PVC facility of 15,000 metric tons in October '25, and added 5,000 metric tons of Sioplas capacity in Q2.

  • Management expects strong domestic demand in Q3 and Q4, and a revival in US exports.

Concerns

  • Q2 FY26 production volumes of 48,204 metric tons were impacted by heavy monsoon and US tariffs, leading to a 7% Q-o-Q degrowth.

  • Delay in 132 kV product trials, now expected in Q1 CY26 (Jan-Mar 2026) due to customer capacity constraints.

  • Product mix shift towards lower-margin PVC in Q2 contributed to a 5% Y-o-Y reduction in gross margin per kg.

Key financials

2 periods

Q2 FY26

  • Revenue
    ₹680 Cr
    YoY +17%
  • EBITDA
    ₹75 Cr
  • EBITDA Margin
    11%
  • PAT
    ₹47 Cr
  • EBITDA per ton
    ₹15,559
  • Production Volume
    48,204 metric tons
    YoY +8%
  • Capacity Utilization
    87%

H1

  • FY26 Revenue
    ₹1,450 Cr
    YoY +20%
  • FY26 EBITDA
    ₹154 Cr
  • FY26 EBITDA Margin
    11%
  • FY26 PAT
    ₹99 Cr

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

high confidence
  • Capex ₹110 Cr
    • New PVC facility
    • HFFR compounds capacity
    • PVC compounds capacity
    • Sioplas compounds capacity
    Our capex plans remain on track with an expected investment of INR110 crores for this financial year. (Page 6)

Guidance & targets

Volume

  • FY26 Volume Target Volume · FY26 · High confidence 210,000 to 220,000 tons
    And this year, we have a target to achieve somewhere in the range of 210,000 tons to 220,000 tons. That is the overall target we are focusing on. (Page 13)

    — Arihant Bothra

Revenue

  • FY26 Revenue Target Revenue · FY26 · High confidence INR2,850 crores to INR2,950 crores
    So roughly, you can say we'll be able to achieve our revenue in the range of INR2,850 crores to INR2,950-odd crores and margins will be in the range of 10% to 12% of EBITDA margin. (Page 14)

    — Arihant Bothra

EBITDA Margin

  • FY26 EBITDA Margin Target EBITDA Margin · FY26 · High confidence 10% to 12%
    As far as the EBITDA margin is concerned, see, our focus and our guidance has always been categorically clear in the range of 10% to 12%. (Page 13)

    — Arihant Bothra

EBITDA per ton

  • EBITDA per ton Target EBITDA per ton · FY26 · High confidence above INR15,000 per ton
    So on a broader sense, we can say, in this particular financial year, we have been, on an average, been above INR15,000 per ton, and we hope that it will be continued for this entire financial year. (Page 17)

    — Arihant Bothra

Growth

  • CAGR Growth Growth · FY30 · High confidence 12% minimum
    See, on CAGR basis, definitely, we'll be growing at 12% minimum to meet our targets of FY30 at INR5,000-odd crores. (Page 17)

    — Arihant Bothra

Capacity

  • Total Installed Capacity Capacity · H2 FY26 · High confidence 270,000 plus
    See, by end of H2, as of now, we are saying the capacity will be in the range of roughly 270,000 plus, because PVC 25,000 will get added. HFFR 5,000 will be added. (Page 20)

    — Arihant Bothra

Product Development

  • 132 kV product trials Product Development · Q1 CY26 (Jan-Mar 2026) · Medium confidence completed
    But hopefully, this coming quarter, means January to March, we should be able to get these trials done, because third customer has very recently agreed to give us space in the first quarter of next calendar year, which is January to March 2026, a space for a trial. (Page 8)

    — Rajesh Kothari

  • 220 kV cable compounds supply Product Development · by 2029 or '30 · Low confidence available
    But 132 is something which will be visible in the next calendar year. Now once the trial is through, we'll plan for the additional capex for that, which is already in pipeline. And once we supply the 132 kV cable compounds for a couple of years in the market, we will be working on 220 as well. So 220 as of now seems to be going ready by 2029 or '30. (Page 16)

    — Narrindra Suranna

What to watch in Q3 FY26

132 kV product trials completion

Q1 CY26 (Jan-Mar 2026)
Current Delayed, expected Q1 CY26
Target Trials completed and successful

Why it matters

Successful trials are crucial for commercialization and entry into the high-voltage cable segment.

But hopefully, this coming quarter, means January to March, we should be able to get these trials done, because third customer has very recently agreed to give us space in the first quarter of next calendar year, which is January to March 2026, a space for a trial. (Page 8)

Risks & concerns

  • Impact of heavy monsoon on cable laying activity

    medium

    Heavy monsoon in Q2 FY26 significantly impacted cable laying, leading to lower volumes for power distribution applications.

    Management acknowledged

  • Impact of US tariffs on HFFR exports

    medium

    US tariffs affected demand from customers exporting to the US, impacting HFFR volumes in Q2 FY26.

    Management acknowledged

  • Delay in 132 kV product trials

    low

    Trials for 132 kV products were delayed due to customer capacity constraints, now expected in Q1 CY26.

    Management acknowledged

  • Product mix shift impacting gross margins

    low

    Increased contribution of lower-margin PVC in Q2 FY26 led to a 5% Y-o-Y reduction in gross margin per kg, though management aims to mitigate this with specialty PVC.

    Analyst acknowledged

Q&A highlights

6 direct
Volume Degrowth in Q2 FY26 Direct
This marginal impact is mainly contributed by the power cable and distribution cable segment, which is impacted because of cable laying. Otherwise, in most of the areas, if you see, we have grown. So this is just to give you a perspective why it is such. (Page 7)

Management explained the reasons for lower Q2 volumes, attributing it to external factors like monsoon and US tariffs, rather than underlying demand weakness.

Asked by Guru Darshan

EBITDA per ton margin sustainability with PVC capacity Partial
So if we consider both, definitely, our guidance range of 14.5% to roughly 16.5%, 16%, 16.5% is something which we continue to remain. And the outcome, you can say the result of the same is visible in the second quarter. (Page 7)

Analyst questioned margin sustainability with lower-margin PVC. Management reiterated overall margin guidance, implying product mix management will help maintain profitability.

Asked by Guru Darshan

Improvement in Export Margins Direct
But now we are seeing the margins recovering for export also and a bit of higher margin we are getting from export transactions. (Page 8)

Management confirmed a positive trend in export margins, indicating recovery from previous challenges.

Asked by Guru Darshan

Status of 132 kV XLPE product trials Direct
But hopefully, this coming quarter, means January to March, we should be able to get these trials done, because third customer has very recently agreed to give us space in the first quarter of next calendar year, which is January to March 2026, a space for a trial. (Page 8)

Provided a specific timeline for the crucial 132 kV product trials, which had been delayed, indicating progress towards commercialization.

Asked by Arnav Sakhuja

Comparison of volume growth with competitors (KEI, Polycab) Partial
But the fact remains, and it is historically, this is a fact that monsoon season is a difficult season because you do not have the cable laying activity... I really can't comment with regard to Polycab and KEI, because they are having a very big mix. (Page 8)

Management explained that their specific product mix (power distribution) is more susceptible to monsoon impact than competitors with broader portfolios (building wire), clarifying why their Q2 volume growth might differ.

Asked by Bobby Jay

Reduction in gross margin per kg Direct
So it is more towards the product mix. And as you correctly highlighted, in this particular quarter, the XLPE has comparatively not grown or degrown by hardly some percentages, but PVC has grown. So effectively, the lower margin is higher, you can say, a percentage of the revenue. (Page 9)

Management attributed the gross margin reduction to a shift in product mix towards lower-margin PVC, rather than increased competitive intensity.

Asked by Rishabh Agarwal

Demand from new players like Adani and UltraTech Direct
So what we hear from them that they should be able to start the production somewhere in the first quarter of the calendar year 2026, or the worst case, first quarter of financial year '27. (Page 13)

Provided a timeline for when demand from significant new market entrants is expected to materialize, which will boost PVC sales.

Asked by Bhargav

HFFR capacity addition and its impact on margins Direct
So HFFR is not dilutive in nature, first of all, let me clarify. As far as PVC is concerned, we are adding this capacity seeing the future demand. Out of this, the capacity utilization may not be as high as we see of XLPE, because those demands are not expected to be feasible in this particular financial year. (Page 20)

Management clarified that HFFR is not a dilutive product and explained their strategy for PVC capacity additions, focusing on specialty products to mitigate margin impact.

Asked by Saket Kapoor

3 min read 7 chapters

Detailed narrative

Q2 FY26 Performance and H1 Overview

DDev Plastiks reported a robust H1 FY26, with revenue from operations reaching approximately INR1,450 crores, marking a 20% Y-o-Y growth. EBITDA stood at INR154 crores with an 11% margin, and PAT was INR99 crores, delivering a 7% margin. For Q2 FY26, revenue was INR680 crores, a 17% Y-o-Y increase, with EBITDA at INR75 crores (11% margin) and PAT at INR47 crores (7% margin). Production volumes for Q2 were 48,204 metric tons, growing 8% Y-o-Y, and capacity utilization improved to 87%.

Strategic Expansion and Capacity Additions

The company is actively expanding its manufacturing capabilities. As of September 2025, the installed capacity stood at 238,400 metric tons per annum. A new PVC facility with 15,000 metric tons capacity was commissioned in October 2025. Additionally, 5,000 metric tons of HFFR compounds and 10,000 metric tons of PVC compounds are scheduled to be operational by the end of the calendar year. These additions are part of the strategy to meet surging demand in renewables and power sectors.

Market Dynamics and Sector Outlook

The cables and wire sector remains central to India's industrial growth, with demand for high-quality polymer compounds expected to accelerate due to electrification and renewables push. The company is strategically positioned as a trusted partner in this high-growth market. Management anticipates positive demand momentum in the upcoming periods, driven by improved sentiment and purchasing power in rural India, and a recovery in US exports.

Product Mix and Margin Management

While the Q2 gross margin per kg saw a 5% Y-o-Y reduction, management attributed this primarily to a product mix shift with increased contribution from lower-margin PVC. However, the company is focusing on high-performance products within the PVC segment and maintaining an overall EBITDA margin guidance of 10-12% for FY26. EBITDA per ton improved sequentially to INR15,559, highlighting effective product blend management.

Capital Expenditure Plans

DDev Plastiks is on track with its FY26 capex plan, with an expected investment of INR110 crores, and INR90 crores already committed in H1. The company also plans to invest over INR100 crores in FY27. The broader investment, including working capital, is projected to be INR500-600 crores for the overall growth strategy. These investments are aimed at expanding capacity and capabilities to meet future demand.

Challenges and Mitigation Strategies

Q2 FY26 volumes were impacted by two main factors: heavy monsoon affecting cable laying activities and US tariffs impacting HFFR exports. Management noted that the monsoon impact is seasonal and the US tariff situation is showing signs of recovery, with demand picking up. The company is also working to tap new overseas customers for products affected by tariffs and expects strong domestic demand in the coming quarters to offset these challenges.

High-Voltage Cable Development

Progress on high-voltage cable compounds continues, though 132 kV product trials have been delayed and are now expected in Q1 CY26 (Jan-Mar 2026) due to customer capacity. Once trials are successful and 132 kV compounds are supplied for a couple of years, the company plans to work on 220 kV compounds, targeting availability by 2029 or 2030. This long-term strategy aims to strengthen presence in the high-voltage cable segment.

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