DDev Plastiks Industries Ltd Q1 FY27 Earnings Analysis

- FY27 revenue growth targeted at 13% year-on-year, volume growth at 15% (Page 5, 14, 15). - Polymer compounding volume expected to grow 15% in FY28 over FY27 base of ~230,000 tons (Page 15). - Capacity expected to ramp up gradually with capacity utilization increasing from 77% in FY26 to 73% in FY27, reflecting new capacity additions (Page 5, 15). - BESS (Battery Energy Storage System) business planned to develop 5 GWh capacity phased, each gigawatt generating INR800-900 crores revenue; initial 1 GWh projected revenue INR200-250 crores in FY27, ramping to INR800-900 crores by FY28 (Pages 11, 14, 19). - BESS EBITDA margins expected breakeven in FY27, rising to 10%+ in FY28 (Pages 10, 14). - Overall targeted INR5,000 crores revenue from polymer compounding by 2030 with additional INR2,000-2,500 crores from BESS vertical (Page 5).

- FY27 revenue growth is guided at 13% year-on-year with volume growth of 15%. - EBITDA margins for FY27 are expected around 11%, maintaining operational efficiency. - Battery Energy Storage System (BESS) segment to add incremental revenues of INR200-250 crores in FY27, with breakeven expected in this year. - BESS projected 1 gigawatt sales in FY28 with revenues around INR800-900 crores and EBITDA margins improving beyond 10%. - By FY30, polymer compounding business targeting INR5,000 crores revenue; BESS to contribute additional INR2,000-2,500 crores revenue. - Overall PAT growth of 9% in FY26 highlights strong earnings quality and financial discipline. - Volume growth in polymer compounding expected to grow by 15% in FY28 over FY27 base. - EBITDA from BESS expected to grow from low single digit (FY27) to double digits (~10%) by FY28.

- Planned capex for FY27 is approximately INR175 crores focused on: - Expanding XLPE compounding capacity. - Diversification into Battery Energy Storage System (BESS) business. - Total BESS investment phased over multiple years; around INR70+ crores allocated in FY27. - BESS roadmap targets 5 gigawatt installed capacity by 2030, with each gigawatt expected to generate INR800-900 crores revenue. - Initial BESS phase (1 gigawatt hour) requires working capital of INR200-250 crores, funded through existing limits. - Further capacity expansion for BESS planned based on market dynamics and funding via banking and other channels. - Capacity additions in polymer compounding (e.g., 48,000 tons in Bhiwadi) to be fully utilized over coming years. - Emphasis on strategic investments to strengthen renewable energy offerings alongside core polymer compounding business.

- For the first phase of the BESS project (1 gigawatt hour), working capital requirement is estimated at INR 200-250 crores, with sufficient limits already available for funding. - For the full 5 gigawatt hour BESS capacity, plans include exploring increased funding cycles through banking and other channels. - Total capex for FY27 is INR 175 crores, which includes expansion for polymer compounding capacity and BESS; of which around INR 70 crores is allocated specifically for BESS. - No explicit mention of new equity fundraising; funding focus is on utilizing existing credit facilities and banking channels to meet working capital and capex requirements for expansion. - The company maintains a strong financial position with a net worth of INR 1,013 crores and prudent cash flow management.

- The transcripts do not explicitly mention the current or expected order book or pending orders in specific numeric terms. - However, Arihant Bothra notes that the company is receiving sufficient orders, with no lag in booking; demand is steady both from government and private sectors. - Export order visibility is positive for Q1, with continued growth expected, particularly in the MENA region and parts of Europe. - The company is confident of maintaining growth momentum despite geopolitical uncertainties. - There are no annual or long-term fixed-price contracts; contracts are mostly short-term (up to 90 days), reducing backlog risks. - The BESS segment is expected to generate INR200-250 crore revenue in FY27, indicating a ramp-up in orders there.