DDev Plastiks

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%.

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.

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.

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.

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.

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.

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.