Ddev Plastiks Industries Limited — Q4 FY26 earnings call

Call held 26 May 2026

Management summary

Ddev Plastiks delivered a resilient Q4 FY26 performance, with revenue growing 13% and PAT up 9% despite geopolitical headwinds and raw material price volatility. The company is strategically expanding its polymer compounding capacity and has made a significant foray into the Battery Energy Storage System (BESS) sector, targeting substantial revenue contributions by FY2030. Management provided optimistic guidance for FY27, including 13% revenue growth and stable EBITDA margins.

Highlights

  • FY26 Revenue grew by 13% year-on-year.

  • FY26 EBITDA margin at 11%, reflecting a 12% year-on-year growth.

  • FY26 PAT of INR202 crores, registering a 9% year-on-year growth.

  • Export volumes expanded 23% and export revenue rose by 30% in FY26.

  • Total installed capacity elevated to 2,68,400 metric tons per annum, with an additional 48,000 metric tons for XLPE becoming operational from April 2026.

Concerns

  • Geopolitical tensions (Israel-Iran conflict) in FY26 disrupted exports, transit routes, and triggered steep input cost inflation.

  • Raw material prices increased by over 50%, leading to higher inventory and receivables at FY26 end.

  • Temporary softening of market demand due to pass-through of increased selling prices.

Key financials

  1. Revenue — +13%YoY
  2. EBITDA Margin 11%
  3. PAT ₹202 Cr +9%YoY
  4. Volume 2,01,370 metric tons
  5. Capacity Utilization 77%
  6. Net Worth ₹1,013 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 ₹175 Cr
    • Expanding XLPE compound capacity
    • Diversification into BESS
    • 48,000 metric tons dedicated to XLPE ₹80 Cr
    • BESS allocation for FY27 ₹70 Cr
    During financial year 2026, we incurred a capital expenditure of close to INR100-odd crores. Looking ahead, we plan to invest further INR175-odd crores in financial year 2027, primarily towards expanding our XLPE compound capacity with investments earmarked for our diversification into BESS as well.
  • Dividend ₹1.25/share (final)
    We are pleased to propose a final dividend of INR1.25 per share for financial year 2026 as a final dividend, reaffirming our commitment to delivering consistent returns to our shareholders.

Guidance & targets

Volume

  • FY27 Volume Target (Polymer Compounding) Volume · FY27 · High confidence 231,000 metric tons per annum
    Looking ahead to financial year 2027, we are confident of sustaining our growth trajectory, targeting a volume of 231,000 metric tons per annum with a capacity utilization of 73% and a year-on-year revenue growth of 13% alongside top line expansion.

    — Ddev Surana

  • FY28 Volume Growth Target (Polymer Compounding) Volume · FY28 · High confidence 12-15%
    See, if we are saying 2.3 lakhs this year, so 12% to 15% jump for that year also, which will take it close to those levels.

    — Rajesh Kothari

Capacity

  • FY27 Capacity Utilization Target (Polymer Compounding) Capacity · FY27 · High confidence 73%
    Looking ahead to financial year 2027, we are confident of sustaining our growth trajectory, targeting a volume of 231,000 metric tons per annum with a capacity utilization of 73% and a year-on-year revenue growth of 13% alongside top line expansion.

    — Ddev Surana

  • Total Installed Capacity Target Capacity · after current additions · High confidence beyond 315,000 tons per annum
    This capacity addition will take our overall capacity to a level beyond 315,000 tons per annum.

    — Ddev Surana

Revenue

  • FY27 Revenue Growth Target (Polymer Compounding) Revenue · FY27 · High confidence 13%
    Looking ahead to financial year 2027, we are confident of sustaining our growth trajectory, targeting a volume of 231,000 metric tons per annum with a capacity utilization of 73% and a year-on-year revenue growth of 13% alongside top line expansion.

    — Ddev Surana

  • FY30 Revenue Target (Polymer Compounding) Revenue · by financial year 2030 · High confidence INR5,000 crores
    Our strategic priorities at Ddev Plastiks remains firmly anchored to our guided vision of achieving business -- consolidated revenue of INR5,000 crores by financial year 2030 from polymer compounding business.

    — Ddev Surana

Margin

  • FY27 EBITDA Margin Target (Polymer Compounding) Margin · FY27 · High confidence approximately 11%
    We remain equally focused on margin quality with EBITDA margins anticipated at approximately 11%, reflecting our continued emphasis on operational efficiency and value-accretive business.

    — Ddev Surana

BESS

  • BESS Installed Capacity Target BESS · phased manner · High confidence 5 gigawatt
    Our BESS road map is ambitious yet measured. We aim to develop 5 gigawatt of installed capacity in a phased manner with each gigawatt projected to generate approximately INR800 crores to INR 900 crores in revenue.

    — Ddev Surana

  • BESS Revenue per GW Target BESS · per gigawatt · High confidence INR800-900 crores

    — Ddev Surana

  • BESS FY30 Additional Revenue Target BESS · by FY 2030 · High confidence INR2,000-2,500 crores
    This positions BESS as a meaningful and incremental contributor beyond our INR5,000 crores revenue aspiration from the polymer compounding business by FY 2030 with an anticipated top line -- additional top line of INR2,000 crores to INR2,500 crores alone from this vertical of BESS.

    — Ddev Surana

  • BESS FY27 Revenue Target BESS · FY27 · High confidence INR200-250 crores
    This is the first year for us. So, there will be some ramp-up time, which will be required to stabilize the production. And that is why as far as revenue guidance is concerned, though we consider it will be in the range of INR200-odd crores of revenue.

    — Arihant Bothra

  • BESS Long-term EBITDA Margin Target BESS · longer term · High confidence beyond 10%
    However, in longer term, it also entails a good margin beyond 10%.

    — Arihant Bothra

Capex

  • FY27 Capex Capex · FY27 · High confidence INR175-odd crores
    Looking ahead, we plan to invest further INR175-odd crores in financial year 2027, primarily towards expanding our XLPE compound capacity with investments earmarked for our diversification into BESS as well.

    — Arihant Bothra

Product

  • 220 kV Cable Compounds Target Product · by year 2030 · High confidence by 2030
    At this point of time, our plan is highest is up to 220 kV by year 2030.

    — Arihant Bothra

What to watch in Q1 FY27

BESS Revenue & Breakeven

FY27 (check progress in Q1 FY27 results)
Current Targeting INR200-250 crores revenue for FY27 (breakeven)
Target Achievement of INR200-250 crores revenue and breakeven

Why it matters

Crucial for validating the new strategic foray into BESS and its contribution to future growth.

This is the first year for us. So, there will be some ramp-up time, which will be required to stabilize the production. And that is why as far as revenue guidance is concerned, though we consider it will be in the range of INR200-odd crores of revenue. However, for revenue guidance, we haven't considered anything.

Risks & concerns

  • Geopolitical Tensions (Israel-Iran conflict)

    medium

    Intensification of the Israel-Iran conflict disrupted export logistics, transit routes, and triggered steep input cost inflation in FY26, though the situation began to stabilize from April.

    Management acknowledged

  • Raw Material Price Volatility

    medium

    Substantial volatility and over 50% inflation in raw material prices impacted FY26 inventory and receivables, but prices have since stabilized, and the company maintains fixed margins through pass-through.

    Management acknowledged

  • Client Backward Integration

    low

    The inherent risk of customers backward integrating is managed by Ddev Plastiks through its superior scale, skill, and broad product range, making it difficult for clients to replicate.

    Both acknowledged

Q&A highlights

8 direct
BESS Revenue Guidance & Breakeven Direct
This is the first year for us. So, there will be some ramp-up time, which will be required to stabilize the production. And that is why as far as revenue guidance is concerned, though we consider it will be in the range of INR200-odd crores of revenue. However, for revenue guidance, we haven't considered anything. ... Close to the revenue we anticipated for this year, INR200-plus crores of revenue will be a good breakeven point.

Clarifies the initial revenue expectations and profitability timeline for the new BESS segment, which was not included in the main guidance.

Asked by Bhargav Budhadev

Raw Material Price Volatility & Pass-through Direct
See, mostly, it is a lag of seven days to 15 days. But again, it depends upon the intensity of the price hike. For example, the price hike is less than 1%, okay, then seven to 15 days lag is there. But a price hike, as we have seen, which was very volatile and very aggressive price hike in the month of March, then the pass-through was instant.

Explains the company's ability to manage raw material price volatility and maintain margins through dynamic pass-through mechanisms.

Asked by Hrishit Jhaveri

Export Market Demand Post-Conflict Direct
MENA region mainly, Middle East and North Africa has contributed strongly to our numbers. ... No, all markets have contributed well up to Europe, I would say, because it had not impacted demand sales point of view. Latin America and North America has not shown any growth, but ... there the business is strong.

Provides clarity on the resilience of export markets despite geopolitical tensions, indicating continued growth opportunities.

Asked by Bhargav Budhadev

Government Spending & Demand for Wires/Cables Direct
See, of course, this industry is connected with the government spending. But over a period of time, we have seen that this industry has diversified means the cable producers today are not only dependent upon the government spending on infra project because solar and all activities are equally done in the private sector. ... So, we do not see any impact on our demand or our financials or our cash flows because of this perceived cut in the government spending.

Addresses concerns about potential demand slowdown due to reduced government spending, highlighting diversification and other growth drivers.

Asked by Jainam Ghelani

Capacity Utilization & Conservative Guidance Direct
No, no, sir. Capacity addition is being done in the spur because, say, for example, in Bhiwadi, we put up a capacity of 48,000 tons, knowing fully well that 48,000 tons will not be consumed, cannot be sold out in one year's time. ... So, because of that, you'll see a little lower capacity utilization against that capacity addition.

Explains the rationale behind the seemingly lower capacity utilization target for FY27, attributing it to the ramp-up time for new capacities.

Asked by Jainam Ghelani

BESS Sourcing & Customer Approvals Direct
So, these are the base guidance the developers follow the as per ISO standard. So, because as per ISO standard, fire and safety concern. So, they are validating from documentation to reliabilities each and every parameter. So, we started to discussion, we already submitted what we have and what we applied for this longer period for certification and all the things. ... So, it takes around three to six months, minimum three and maximum six months to board on any big developer. So, we already started from the four -- three months ago.

Details the rigorous approval and certification process for BESS products and how the company is proactively managing it to avoid supply delays.

Asked by Nikunj Doshi

BESS IP Strategy (BMS/EMS) Direct
So, BMS definitely will -- starting, we'll buy from Tier 1 supplier from China. But in future, in the couple of months, we will have our own IP of BMS and EMS both. This is our future plan. But initially, we will start from China.

Outlines the company's long-term strategy for developing proprietary IP in critical BESS components like BMS and EMS, moving beyond initial imports.

Asked by Yashwant

Risk of Client Backward Integration Direct
Yes. See, it is a risk which is attached to our business, and it will always remain. That customer can go for backward integration. But again, it is the effort versus return every customer has to look at and the scale at which they can beat our size and the scale, then only they can think of. ... So, yes, theoretically, this risk is there, but we are doing everything possible and within our means to mitigate that.

Acknowledges a structural risk in the industry and explains the company's strategy to mitigate it through scale, skill, and product range.

Asked by Apoorva

2 min read 6 chapters

Detailed narrative

FY26 Performance Overview and Resilience

Ddev Plastiks reported a resilient performance for FY26, with revenues growing 13% year-on-year. The company achieved a PAT of INR202 crores, marking a 9% YoY increase, and maintained an EBITDA margin of 11%, which grew 12% YoY. Despite challenging external environments, including geopolitical tensions and raw material price volatility, the company delivered 2,01,370 metric tons in volume with a 77% capacity utilization.

Strategic Capacity Expansion and FY27 Outlook

The company's total installed capacity was elevated to 2,68,400 metric tons per annum in FY26. A significant addition of 48,000 metric tons dedicated to XLPE became operational from April 2026, with a committed capex of INR80 crores, pushing total capacity beyond 315,000 tons. For FY27, Ddev Plastiks plans to invest INR175 crores, primarily for XLPE expansion and the new BESS segment, targeting a volume of 231,000 metric tons and 13% revenue growth with an 11% EBITDA margin.

Battery Energy Storage System (BESS) Foray

Ddev Plastiks has strategically entered the Battery Energy Storage System (BESS) sector, aiming to develop 5 gigawatts of installed capacity in a phased manner. Each gigawatt is projected to generate INR800-900 crores in revenue, contributing an additional INR2,000-2,500 crores to the top line by FY2030. For FY27, the company targets INR200-250 crores in BESS revenue, expecting to reach breakeven, with long-term EBITDA margins projected to exceed 10%.

Raw Material Management and Market Dynamics

The company experienced substantial raw material price volatility in FY26, with increases exceeding 50%, which temporarily softened market demand. However, prices stabilized from April 2026. Ddev Plastiks effectively managed this by passing through price increases, maintaining fixed margins per kg, with pass-through lags typically 7-15 days, or instantly for aggressive hikes. This agility helped sustain momentum despite external challenges.

Export Market Resilience and Diversified Demand

Ddev Plastiks demonstrated strong export performance in FY26, with volumes growing 23% and revenue rising 30%. Key regions like MENA, Middle East, and North Africa contributed significantly. The company noted that demand for wires and cables is increasingly diversified, driven by private sector activities, solar projects, and renewable energy initiatives, reducing reliance on government spending and ensuring robust demand.

Product Portfolio, Competition, and IP Strategy

In the XLPE segment, Ddev Plastiks is the largest player, competing with international firms like Dow and Borealis, while in HFFR, Indian producers like Shakun Polymer are key competitors. The company emphasizes its strong scale, capability, and proven performance as critical entry barriers. For BESS, Ddev Plastiks plans to develop its own IP for Battery Management Systems (BMS) and Energy Management Systems (EMS) in the future, moving beyond initial imports from China.

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