Ddev Plastiks Industries Limited — Q3 FY26 earnings call

Call held 10 Feb 2026

Management summary

Ddev Plastiks reported strong financial performance for Q3 and 9M FY26, driven by sustained demand and increased exports. The company made a strategic entry into the Battery Energy Storage Systems (BESS) segment with significant capacity and capital expenditure plans, alongside expanding its HFFR and PVC compound capacities. While acknowledging the high working capital intensity of BESS and potential margin pressures, management expressed confidence in future growth and profitability, supported by macroeconomic tailwinds and strategic product differentiation.

Highlights

  • Q3 FY26 Revenue from operations reached ₹733 crores, representing an 11% Y-o-Y growth.

  • 9M FY26 Revenue from operations reached ₹2,182 crores, representing a double-digit growth of 17% Y-on-Y basis.

  • Export contribution grew sharply to ₹196 crores in Q3 FY26 (27% of total revenue) and ₹523 crores for 9M FY26 (33% Y-o-Y growth).

  • Strategic entry into the high-potential Battery Energy Storage Systems (BESS) manufacturing with an initial plant capacity of 5 gigawatts and ₹150 crores capex for Phase-1.

  • Commissioned an additional 30,000 MTPA capacity (5,000 MTPA HFFR and 25,000 MTPA PVC) at a cost of ₹50 crores, funded entirely through internal accruals.

Concerns

  • The new BESS business is confirmed to be very high working capital intensive, though management aims for a limited cycle of 60-75 days.

  • Analyst concern about potential pressure on BESS realization and margin due to new players, which management believes is not visible for the next 3-5 years.

  • Raw material price volatility (crude oil) impacting EBITDA per ton, though management expects a positive trajectory to continue.

Key financials

4 periods

Q3 FY26

  • Revenue
    ₹733 Cr
    YoY +11%
  • EBITDA
    ₹80 Cr
  • EBITDA Margin
    11%
  • PAT
    ₹48 Cr
  • PAT Margin
    7%

Q3 vs Q2

  • EBITDA per ton
    ₹150
  • Volume Growth
    6%
    QoQ +6%

9M

  • EBITDA per ton
    ₹570

9M FY26

  • Revenue
    ₹2,182 Cr
    YoY +17%
  • EBITDA
    ₹234 Cr
  • EBITDA Margin
    11%
  • PAT
    ₹147 Cr
  • PAT Margin
    7%
  • Production Volume
    1,50,000 tons
  • Capacity Utilization
    81%
  • EPS
    ₹14

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 Capex disclosed entirely through internal accruals
    • Phase-1 for Battery Energy Storage Systems (BESS) manufacturing ₹150 Cr
    • Capacity additions for HFFR and PVC compounds ₹50 Cr
    This expansion will involve additional capacity expenditure of approximately Rs. 150 crores in Phase-1, entirely funded through our internal accrual... This expansion has been funded entirely through our internal accruals at a cost of Rs. 50 crores
  • Debt Debt disclosed
    concerned, see we have sufficient limits which are lying idle today. So it is not that we are going to borrow afresh. The limits are already in place and it will be utilized for this business also.
  • Dividend ₹0.5/share (interim)
    But the dividend payouts on the merit of the board, we as investors would like to understand that why the payout of Rs. 0.50 paisa when we have posted EPS of Rs. 14 for 9 months.
  • Liquidity Liquidity disclosed Sufficient idle limits available to fund new BESS business without fresh borrowing.
    concerned, see we have sufficient limits which are lying idle today. So it is not that we are going to borrow afresh. The limits are already in place and it will be utilized for this business also.

Guidance & targets

Revenue

  • Topline Revenue Revenue · FY30 · High confidence ₹5,000 crores
    We remain strongly confident in exceeding our earlier FY '26 guidance, with our goal of reaching Rs. 5,000 crores in topline by FY '30, firmly on track.

    — Arihant Bothra

Exports

  • Revenue from Exports Exports · FY30 · High confidence 20%-25%
    achieving our ambitious revenue targets of Rs. 5,000 crores by Financial Year '30, with approximately 20%-25% of revenue derived from exports.

    — Ddev Suranna

CAGR

  • Overall Growth CAGR · FY26 · High confidence 10%-12%
    In FY '26, we remain confident of surpassing the earlier guidance of growing on 10%-12% CAGR basis

    — Ddev Suranna

BESS Revenue

  • Revenue from 1 GW BESS Capacity BESS Revenue · per 1 GW · High confidence ₹800-₹900 crores
    we anticipate generating revenue in the range of Rs. 800-Rs. 900 crores from just 1 gigawatt of battery storage capacity

    — Ddev Suranna

  • BESS Revenue BESS Revenue · FY27 · Medium confidence ₹300-₹500 crores
    However, for this financial year, which is just a correction in the statement, it is expected to be in the range of within Rs. 300-Rs. 500 odd crores.

    — Arihant Bothra

BESS Capacity

  • Total BESS Capacity BESS Capacity · less than 3 years · High confidence 5 gigawatts
    It is our group target, our internal target is less than 3 years. We will achieve our 5 gigawatt hour

    — Rakesh Tiwari

  • First 1 GW BESS Operational BESS Capacity · 2028 · High confidence 1 gigawatt
    practically we are supposed to deliver our first gigawatt in 2028.

    — Rakesh Tiwari

Capacity Utilization

  • Average Utilization Capacity Utilization · overall basis · High confidence beyond 70%
    We are expecting the average utilization to be beyond 70% on overall basis, even after PVC and HFFR addition.

    — Arihant Bothra

Production Volume

  • Total Production Volume Production Volume · FY26 · Medium confidence 200 to 2500 metric tons
    we expect this year to be closing somewhere in the range of 200 to 2500 metric tons

    — Arihant Bothra

EBITDA per ton

  • Average EBITDA per ton EBITDA per ton · overall · High confidence ₹1,500-₹1,600
    average, which has reached to almost Rs. 15,500, which was our overall target between Rs. 1,500-Rs. 1,600 is there.

    — Arihant Bothra

What to watch in Q4 FY26

BESS Plant Operational Status

H2 FY26 (next quarter)
Current Greenfield plant scheduled to be fully operational starting in H2 FY26
Target Commercial operations commenced

Why it matters

Verifies the official entry and revenue generation from the new, high-potential BESS segment, crucial for future growth.

with our dedicated Greenfield plant scheduled to be fully operational starting in the second half of this year.

Risks & concerns

  • High working capital intensity for BESS business

    medium

    The new BESS segment requires significant working capital for procurement and processing, though management aims for a 60-75 day cycle.

    Analyst acknowledged

  • Potential pressure on BESS realization and margin due to new players

    medium

    Management believes that due to the tailor-made nature and technical complexities of BESS, significant margin pressure is not expected for the next 3-5 years.

    Analyst downplayed

  • Raw material price volatility impacting EBITDA per ton

    medium

    Variations in crude oil prices can affect raw material costs, but management expects the positive EBITDA per ton trajectory to continue.

    Analyst acknowledged

  • Customer backward integration for compounding

    low

    While some customers pursue backward integration for commodity products, the company's expertise in specialized products and solutions keeps it ahead.

    Analyst downplayed

Q&A highlights

7 direct
BESS segment contribution to earnings and margin profile Partial
As far as FY '27 is concerned, we will start in the second half of this year and we expect the volume to be initially lower side. However, from FY '28, the volumes will pick up substantially... we are expecting the first year, the first gigawatt hour revenue to be around Rs. 800-Rs. 900 crores. However, for this financial year... it is expected to be in the range of within Rs. 300-Rs. 500 odd crores.

Analyst sought clarity on the financial impact and profitability of the new BESS segment, for which management provided initial revenue guidance but limited margin details.

Asked by Archana

Timeline to achieve 5 GW BESS capacity Direct
It is our group target, our internal target is less than 3 years. We will achieve our 5 gigawatt hour, but practically and theoretically, it is possible. Initially, it was mentioned 2030. Before 2030, we will achieve our 5 gigawatt hour complete solution because we are not going to only manufacture our BESS, we are going to further all the solution like initially stage, we are going to manufacture 5 gigawatt hour BESS plant in Ahmedabad.

Clarifies the ambitious timeline for scaling up the new BESS business, indicating significant future growth potential.

Asked by Archana

Working capital intensity of the BESS business Direct
Yes. These types of projects are very high working capital intensive... in this business, the major role is of procurement and processing than the supplies. Since there is a limited supply available from the Indian context, so the main working capital requirement is towards procurement from the raw material part as well as processing time. So probably as Tiwariji said, definitely working capital requirement is high, but that is more towards the supply chain management.

Highlights a key operational and financial characteristic of the new BESS segment, indicating higher capital deployment for working capital.

Asked by Bhargav

Divergence in volume growth and EBITDA growth / EBITDA per kg Direct
I do not know how you are calculating the numbers, but as per my calculation, the EBITDA per ton has moved from last quarter by almost Rs. 150 plus, rather close to Rs. 180. And when I compare the similar for 9 months also, there is a positive growth of almost Rs. 570.

Addresses an analyst's concern about profitability metrics, clarifying that EBITDA per ton has actually shown a positive trend, indicating healthy unit economics.

Asked by Guru Darshan

Technical backing and differentiation for BESS Direct
So regarding the technology selection, we had selected our automatic lines... We are buying all this equipment which can be ensured that whatever we are importing the raw materials, they will check 100% ensure that all the LFP cells and pack and the cables and BMS must be checked before we start the production... we are making sure that every product from importing to the disposable container, disposable customer, each and every parameter, we will test it by ourselves.

Provides detailed insight into the company's quality control, technology, and reliability focus for the new BESS segment, building confidence in its execution capabilities.

Asked by Guru Darshan

Impact of new capacity additions (HFFR/PVC) on EBITDA per ton Direct
on PVC, I would recall the last concall, there we highlighted that our capacity addition is driven by the anticipated demand from the entry of Ultratech and the Adani because both of them are entering in the power cable and wire segment. And the first task or first objective they are taking is to attack the wire segment because both are backward integrated with the copper availability. So they will go for house wiring. And within our portfolio of PVC, the house wiring segment gives us better margin.

Clarifies the strategic rationale behind PVC capacity expansion, indicating a focus on higher-margin segments and UL-certified products to improve overall profitability.

Asked by Saket Kapoor

Competitive intensity in XLPE and cable compounds Direct
As you go higher on the voltage rating, say up to 1.1 kV, of course, you are having a high intensity of competition. But once you go beyond 1.1 kV, towards 11 kV, that intensity goes down because none of our competition, apart from those 4-5 big international players, they are having the same amount of experience and track record of supplying defect-free product for multiple years for that kind of critical application of insulating a conductor which is carrying a current of 11,000 volts.

Provides a nuanced view of the competitive landscape, highlighting the company's differentiation and stronger position in higher-voltage, specialized polymer compounds.

Asked by Murtaza

Dividend payout of ₹0.50 paisa vs EPS of ₹14 for 9M FY26 Direct
So it is just an interim number. And if you see, last year we didn't give any interim. But prior to that, the similar percentage was announced.

Addresses a shareholder's query regarding the dividend payout, clarifying it as an interim dividend consistent with historical patterns.

Asked by Saket Kapoor

2 min read 6 chapters

Detailed narrative

Macroeconomic Outlook & Policy Support

India's economy demonstrated robust growth in FY26, with GDP expanding 7.8% in Q1 and 8.2% in Q2, while inflation remained contained. Government policies, including strategic fiscal stimuli, RBI rate cuts, and sustained CAPEX momentum (₹12.2 lakh crore for FY27, up 11.5%), are fostering a supportive environment. The Budget 26-27 prioritizes energy security and infrastructure, notably allocating ₹1,000 crore as viability gap funding for battery energy storage systems (BESS).

Entry into Battery Energy Storage Systems (BESS)

Ddev Plastiks has strategically diversified into BESS manufacturing, aligning with global decarbonization efforts. Phase-1 involves a ₹150 crore investment, entirely funded by internal accruals, for a Greenfield assembly plant with an initial capacity of 5 gigawatts. The company projects ₹800-₹900 crores in revenue from 1 gigawatt of BESS capacity, with ₹300-₹500 crores expected in FY27. Management targets achieving the 5 GW capacity within three years, with the first gigawatt operational by 2028, anticipating a 2-3 year payback and 25-30% ROCE.

Capacity Expansion in HFFR and PVC Compounds

The company commissioned an additional 30,000 MTPA capacity, comprising 5,000 MTPA for HFFR and 25,000 MTPA for PVC, at a cost of ₹50 crores, funded through internal accruals. This expansion increases the total installed capacity to 2,68,400 MTPA as of December 2026. These additions are aimed at serving high-safety public infrastructure and the growing wire and cable sector, with a focus on higher-margin UL-certified PVC products to enhance profitability.

Financial Performance Highlights

For Q3 FY26, Ddev Plastiks reported revenue from operations of ₹733 crores, an 11% YoY increase, with EBITDA at ₹80 crores (11% margin) and PAT at ₹48 crores (7% margin). For the nine months ended December 2025, revenue reached ₹2,182 crores, growing 17% YoY, with EBITDA of ₹234 crores (11% margin) and PAT of ₹147 crores (7% margin). Exports were a significant contributor, totaling ₹196 crores (27% of revenue) in Q3 and ₹523 crores (33% YoY growth) for 9M FY26.

Competitive Landscape and Product Strategy

Ddev Plastiks maintains a strong market position, particularly in XLPE compounds, holding over 33% market share. The company differentiates itself through its established legacy, product reliability, and technical expertise, especially in specialized products where customer backward integration is challenging. Management noted that competitive intensity varies by voltage rating, with their advanced solutions and UL certifications enabling them to capture emerging opportunities and maintain leadership against both organized and unorganized players.

Capital Allocation and Shareholder Returns

The company's capital allocation strategy prioritizes existing compounding businesses, with new BESS investments funded entirely by internal accruals, utilizing existing idle credit limits without fresh borrowing. For the nine months ended December 2025, an interim dividend of ₹0.50 paisa per share was declared, against an EPS of ₹14. Management clarified this payout is consistent with historical patterns for interim dividends.

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