Ddev Plastiks Industries Limited — Q4 FY25 earnings call

Call held 16 May 2025

Management summary

Ddev Plastiks reported strong Q4 and FY25 results, with FY25 revenue reaching ₹2,603 crores and PAT growing at a 46% CAGR since FY20. The company achieved its highest-ever quarterly sales volume of 50,752 metric tons in Q4 FY25, contributing to a 14% YoY volume growth for the full year. Despite temporary export headwinds and raw material price volatility, Ddev Plastiks maintained a net debt-free status and received credit rating upgrades, positioning it for continued growth with planned capacity expansions.

Highlights

  • FY25 Revenue from operations reached ₹2,603 crores.

  • FY25 PAT stood at ₹185 crores, demonstrating a 46% CAGR from FY20.

  • Q4 FY25 Revenue from operations grew 23% YoY to ₹737 crores.

  • Achieved highest-ever quarterly sales volume of 50,752 metric tons in Q4 FY25.

  • Maintained net debt-free status since Q4 FY24 and received credit rating upgrades to A+ stable and A1+.

Concerns

  • Temporary headwinds in H1 FY25 for export revenues due to logistical disruptions and subdued demand.

  • Commercial revenue for 132kV products not expected before FY27-FY28 due to trial delays.

  • Raw material price volatility and supply chain disruptions remain a factor.

Key financials

2 periods

Q4 FY25

  • Revenue
    ₹737 Cr
    YoY +23%
  • EBITDA
    ₹79 Cr
  • EBITDA Margin
    11%
  • PAT
    ₹52 Cr
  • Volume
    50,752 metric tons
  • EBITDA per ton
    15.6 INR thousands

FY25

  • Revenue
    ₹2,603 Cr
  • EBITDA
    ₹287 Cr
  • EBITDA Margin
    11%
  • PAT
    ₹185 Cr
  • Volume
    1,89,374 metric tons
    YoY +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 ₹110 Cr
    • Capacity expansion for XLPE, PVC, HFFR
    During the year, we incurred a CAPEX of Rs 55-odd crores and we plan to invest another Rs 110 odd crores in this current fiscal year to support our continued growth and expansion initiatives.
  • Debt Debt disclosed
    I am also pleased to highlight that our company has become a net debt-free company in Q4 of FY '24 and has maintained its position to date.

Guidance & targets

Volume

  • Volume Growth Volume · FY26 · High confidence 10-15%
    Furthermore, in line with the earlier guidance, we are targeting a volume growth of 10% to 15% and a revenue growth of 12% to 13%, aiming to reach a revenue of approximately Rs 4,500 to Rs 5,000 crores by FY '30.

    — Ddev Surana

Revenue

  • Revenue Growth Revenue · FY26 · High confidence 12-13%
    Furthermore, in line with the earlier guidance, we are targeting a volume growth of 10% to 15% and a revenue growth of 12% to 13%, aiming to reach a revenue of approximately Rs 4,500 to Rs 5,000 crores by FY '30.

    — Ddev Surana

  • Revenue Target Revenue · FY30 · High confidence ₹4,500-5,000 crores

    — Ddev Surana

Margin

  • EBITDA Margin Margin · Ongoing · High confidence 10-12%
    We expect to maintain a healthy EBITDA margin of around 10% to 12%.

    — Ddev Surana

Capacity

  • XLPE Capacity Operational Capacity · Q1 FY26 · High confidence 5,000 tons per annum
    So, for XLPE, in the first quarter, 5,000 tons per annum capacity have been made operational, whilst some capacities are being de-bottlenecked and machineries are in pipeline, which will be operational by 3rd Quarter.

    — Arihant Bothra

  • PVC Capacity Operational Capacity · Q3 FY26 · High confidence 25,000 tons
    When we talk about PVC, Q2, the machines will be available in the plants, but as per the overall estimation, the commercial operation will start from the 3rd Quarter. The capacity is close to 25,000 tons.

    — Arihant Bothra

  • HFFR Capacity Operational Capacity · End of September (Q2 FY26) · High confidence 10,000 tons
    For HFFR, 5,000 tons is already working, and 5,000 tons is already ordered, which will be operational by end of September.

    — Arihant Bothra

Exports

  • Export Revenue Share Exports · FY26 · High confidence 25%
    So, sir, in FY '26, can we expect the share of exports to come back to 25% of overall revenue? Yes, absolutely.

    — Ddev Surana

Product Commercialization

  • 132kV Commercial Revenue Product Commercialization · FY27-FY28 · Medium confidence Not before FY27-FY28
    See, 132kV commercial revenue will not be possible before FY '27, FY '28 maybe.

    — Ddev Surana

Capacity Utilization

  • New Capacity Operational Utilization (first year) Capacity Utilization · FY26 · High confidence 60-65%
    So since it is the first year, you can say the operational capacity will be around 60% to 65% max.

    — Ddev Surana

  • New Capacity Operational Utilization (next year) Capacity Utilization · FY27 · High confidence 80-85%
    But going forward, next year, we can go up to 80% to 85%.

    — Ddev Surana

What to watch in Q1 FY26

HFFR capacity commissioning

By end of September (Q2 FY26)
Current 5,000 tons already working, another 5,000 tons ordered
Target Full 10,000 tons operational

Why it matters

HFFR is a higher-margin product; its full capacity utilization will contribute to margin improvement and volume growth.

For HFFR, 5,000 tons is already working, and 5,000 tons is already ordered, which will be operational by end of September.

Risks & concerns

  • Logistical disruptions and high sea freight costs

    medium

    Impacted H1 FY25 export revenues, but recovery is underway and momentum is expected to continue.

    Management acknowledged

  • Raw material price volatility

    medium

    Raw material prices are not in company's control, but changes are passed on to customers, and EBITDA margins per ton are managed.

    Analyst acknowledged

  • Delay in 132kV commercialization

    medium

    Product is ready, but commercial revenue is delayed until FY27-FY28 due to challenges in securing customer machines for trials.

    Management acknowledged

Q&A highlights

7 direct
Difference in Q4 FY24 vs Q4 FY25 EBITDA margin Direct
So, if you see last year Quarter 4, specifically, we had, as I explained, annual discounts being comparatively higher as compared to the current year. It was majorly because of a new player entrant, because of which the entire petrochemical producers have adjusted their pricing strategies.

Clarifies that last year's Q4 margins were exceptional due to specific market dynamics, providing context for current margin levels.

Asked by Pritesh Chheda

Sustainability of EBITDA per kg (INR 15-16 range) Direct
The range what we expect is, the range is going to be between INR 14,500 to INR 16,000 per metric ton of EBITDA, this is achieved.

Provides clear guidance on the expected and maintainable EBITDA per kg range, including the impact of other income, which is crucial for profitability assessment.

Asked by Amar Maurya

Export revenue recovery and share target for FY26 Direct
So, sir, in FY '26, can we expect the share of exports to come back to 25% of overall revenue? Yes, absolutely.

Confirms management's confidence in regaining export market share and achieving a significant contribution to overall revenue, indicating a key growth driver.

Asked by Bhargav Buddhadev

Timeline for 132kV commercial revenue Partial
See, 132kV commercial revenue will not be possible before FY '27, FY '28 maybe. And the challenge today, even today, because last 2 quarter or 3 quarter constantly we are discussing this topic. Unfortunate part is that the product is ready, but we are not able to tie up.

Highlights a delay in commercializing a high-voltage product, indicating potential revenue deferrals from this segment and the challenges faced.

Asked by Bhargav Buddhadev

HFFR volume growth target for FY26 Direct
Now that we are adding capacity, so are we confident that this 3,000 tons can cross 5,000 tons in FY '26 and that is why we are adding capacity? Yes, yes.

Provides a specific volume target for a key product segment, directly linked to capacity expansion, which is important for future growth.

Asked by Bhargav Buddhadev

Raw material price fluctuation and supply chain stability Direct
So on the first question, see, our overall marketing policy is very much clearer with our customers, rather transparent with the customers, wherein whenever there is a change in raw material prices, our price list changes, and we immediately take the new orders on the basis of new price list.

Explains the company's strategy for managing raw material price volatility by passing on changes to customers and diversifying suppliers, mitigating risk.

Asked by Amlan Chakraborty

US export approvals timeline Direct
Yes. So we expect that within next 1 month, we should have these approvals in our hand, because we are working on different specifications. So we are right now working on 3 particular specification of U.S. market. Cable samples are there with the authorities. And we expect at least one approval before June 2025.

Provides a specific timeline for critical US market entry approvals, which could significantly boost export volumes and market diversification.

Asked by Arnav Sakhuja

Operational capacity utilization for new additions in FY26 Direct
So since it is the first year, you can say the operational capacity will be around 60% to 65% max. But going forward, next year, we can go up to 80% to 85%.

Sets expectations for the ramp-up of new capacities, indicating a phased contribution to overall volumes and future growth potential.

Asked by Harpreet Singh

3 min read 8 chapters

Detailed narrative

Strong Financial Performance in FY25

Ddev Plastiks reported a robust financial year, with consolidated revenue reaching ₹2,603 crores and EBITDA at ₹287 crores, reflecting an 11% margin. Net profit stood at ₹185 crores, demonstrating an impressive 46% CAGR from FY20 to FY25. The company also achieved its highest-ever annual sales volume of 189,374 metric tons, marking a 14% year-on-year growth.

Q4 FY25 Highlights and Margin Analysis

In Q4 FY25, the company recorded revenue from operations of ₹737 crores, a 23% year-on-year growth, with EBITDA at ₹79 crores and a margin of 11%. PAT for the quarter was ₹52 crores (7% margin). The highest-ever quarterly sales volume of 50,752 metric tons was achieved. Management clarified that the higher Q4 FY24 margins were exceptional due to annual discounts from a new player, while current EBITDA per ton of ₹15.6 is considered sustainable within a range of ₹14.5 to ₹16.

Strategic Capacity Expansion Initiatives

Ddev Plastiks is actively expanding its XLPE, PVC, and HFFR compounding capacities to meet growing demand. In FY25, the company incurred a CAPEX of ₹55 crores and plans to invest another ₹110 crores in FY26. This includes 5,000 tons of XLPE capacity operational in Q1 FY26, 25,000 tons of PVC capacity expected by Q3 FY26, and 10,000 tons of HFFR capacity fully operational by Q2 FY26.

Outlook and Growth Ambitions

The company targets a volume growth of 10-15% and a revenue growth of 12-13% for FY26, aiming to reach ₹4,500 to ₹5,000 crores in revenue by FY30. EBITDA margins are expected to be maintained in the 10-12% range. Management is confident in achieving these targets through operational efficiencies, product portfolio expansion, and increased market share.

Export Market Recovery and US Entry

After facing temporary headwinds in H1 FY25 due to logistical issues, Ddev Plastiks expects continuous growth in export volumes in FY26, aiming to restore exports to 25% of overall revenue. The company anticipates receiving at least one US export approval by June 2025, with further approvals expected within three months, which will open up new market opportunities in the US, Middle East, North Africa, and Europe.

Challenges in 132kV Commercialization

While the product for 132kV cables is ready, commercial revenue is not expected before FY27-FY28. This delay is attributed to difficulties in securing customer machines for trials, which are necessary for type testing and commercial launch. Management hopes trials will commence by June or July 2025 as some companies expand their capacities.

Raw Material Management and Market Dynamics

The company manages raw material price fluctuations by transparently adjusting price lists and passing on changes to customers for spot orders. They emphasize that EBITDA margins per ton are controllable. The domestic cable and wire market is projected to grow at an 11-13% CAGR from FY24 to FY27, driven by electrification, infrastructure expansion, and sectoral growth.

Net Debt-Free Status and Credit Rating Upgrade

Ddev Plastiks has maintained its net debt-free position since Q4 FY24. This strong financial health was recognized by Crisil, which upgraded the company's credit ratings to A+ stable for long-term and A1+ for short-term, reflecting robust financial and operational performance.

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