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.