DCW Ltd

- During the fiscal year FY '25, DCW Limited made borrowings of INR 80 crores to fund ongoing C-PVC capex. - No fresh indications or announcements were made regarding new fundraising through debt or equity beyond this. - The company focused on reducing financial leverage, achieving a net debt-to-EBITDA ratio below 1x, demonstrating a strong balance sheet. - Future growth capex and operational efficiencies are planned to be funded internally, as indicated by management. - No explicit plans for additional debt or equity fundraising were mentioned in the call or documents. - The company is maintaining financial discipline and appears focused on internal funding rather than new external fundraising.

- Ongoing capex for expanding CPVC capacity from 20 KT to 50 KT at Sahupuram site; commissioning of first 20 KT expected earlier than September 2025, with full commercialization anticipated by March 2026. - Routine and maintenance capex for basic chemicals (PVC, Soda Ash, Caustic Soda) focused on cost-saving initiatives and operational efficiencies. - No expansion planned for Soda Ash capacity; current capacity stable at ~1 lakh tons with debottlenecking underway. - Alternate energy project commissioned to optimize energy costs, improve carbon footprint, and reduce dependence on conventional power. - No immediate plans to expand basic chemical capacities; future investments primarily targeted toward specialty chemicals and value-added products for margin improvement and steady growth.

- Specialty Chemicals segment expected to drive growth, especially with the 30,000 tons CPVC capacity expansion progressing ahead of schedule, with first 20,000 tons commissioning expected before September 2025, boosting volumes in H2 FY '26. - Basic Chemicals volume growth remains stable, with PVC expected to grow 6-7% in FY '26 despite pricing pressures; no volume degrowth anticipated. - Synthetic Rutile export demand, especially from Japan, is recovering with 70% of annual production contracted, suggesting better realizations ahead. - Soda Ash volumes projected to increase by approx. 20% this year as mechanical issues get resolved, aided by anticipated antidumping duties improving pricing and margins. - CPVC adoption, including emerging applications like fire sprinkler systems, expected to gradually increase demand potentially multiple times current plumbing volumes, driven by approvals primarily in Tier A metros. - Overall FY '26 to be a year of execution and margin improvement, with volume-led specialty sales growth and operational efficiencies in basic chemicals.

- The company expects gradual demand growth initially in Tier A metros, eventually expanding to other cities, leading to multiple growth beyond plumbing sector demand (Page 15). - Specialty Chemicals segment is driving EBITDA growth, with a targeted EBITDA of around INR 400 crores by FY '27 (Page 8). - Earnings improvement from capacity expansions: 30,000 tons C-PVC expansion expected to be commissioned by September 2025 (20,000 tons) and March 2026 (10,000 tons), potentially compressed by a few months for earlier benefits (Pages 9, 12). - Reduced financial leverage with net debt-to-EBITDA ratio below 1x and growing EBITDA margin and ROCE indicates stronger profitability (Page 5). - Soda Ash margins expected to improve with antidumping duties levied on cheaper imports; historical EBITDA margins north of 20%, with potential for margin improvement as fixed costs remain stable (Page 15). - Future investments will prioritize value-added specialty chemicals over basic chemicals to enhance margin resilience and earnings stability (Page 7).

- For Synthetic Rutile (SR), the company has contracted about 70% of its annual production with the base market in Japan. - The remaining volumes plus existing inventory are expected to be liquidated gradually, signaling an improving order book for SR. - There is no specific numeric disclosure of total order book or pending orders, but management expresses optimism about demand pickup. - For CPVC, initial volumes are expected to start with commissioning ahead of schedule, with commercialization expected before September 2025, indicating some pending order fulfillment. - Specialty chemicals, including SIOP and CPVC, have ongoing demand with a significant export share, especially to the U.S., though specific order backlog numbers are not disclosed. - Overall demand growth is expected to be multiple times current levels in CPVC as approvals and market adoption increase gradually from Tier A metros to other cities.