DCW Ltd

- DCW has been focusing on reducing debt with a disciplined approach. - For the current year, borrowings for the capex have already been taken. - They are working on some proposals for future investments but are proceeding cautiously due to geopolitical uncertainties. - No immediate plans for new fundraising through debt or equity announced. - The company plans to maintain a healthy balance sheet and aims for a net debt-to-EBITDA ratio of less than 0.5x by the end of FY '26. - Future capex is planned around INR150-200 crores annually, funded through improved cash flow and reduced debt, rather than fresh fundraising.

- DCW has been consistently doing capex of around INR 150 crores annually over the last 2 years. - This year’s borrowings for capex have already been taken, enabling significant debt reduction and available financial capacity for investments. - The company is working on some proposals but is cautious about preponing any announcements due to geopolitical uncertainties. - C-PVC expansion: A 20,000-ton expansion was commissioned ahead of schedule and began contributing from July-August 2025; an additional 10,000-ton expansion is underway as planned. - Solar project: Commissioned a 44.5 MW solar project during the quarter, expected to meet about 25% of Tamil Nadu unit’s power requirements and contribute INR 4.5-5 crores in power cost savings this quarter. - Future capex plans depend on market dynamics, capability, and government policies, especially regarding geopolitical developments and tariffs.

- C-PVC demand currently around 2.5 lakh tons, expected to grow to ~3 lakh tons in 2-3 years. - Domestic C-PVC capacity is about 1 lakh tons with key players Epigral (75,000 tons) and DCW (40,000 tons), plus expansions underway. - New entrants like Lubrizol and Reliance are expanding C-PVC production in phased manner, adding 60,000-70,000 tons in first phase. - Short-term possibility of oversupply due to new capacities and imports, but long-term demand expected to adjust and grow. - PVC volumes for external sales expected to reduce due to increased internal consumption for C-PVC; trend likely to continue. - Demand growth driven by infrastructure, housing sector, and new applications like fire sprinklers and industrial use of C-PVC. - Overall revenue growth may be muted due to internal PV consumption substitution, but bottom-line expected to improve with better margin mix.

- Management is cautiously optimistic about growth but refrains from providing firm top-line guidance due to market volatility and geopolitical uncertainties. - C-PVC expansion (20,000 tons commissioned ahead of schedule; additional 10,000 tons in progress) expected to strengthen margins and bottom line in coming quarters. - Incremental power cost benefits (solar project) and increased internal consumption of PVC for C-PVC production to improve profitability. - EBITDA guidance of around INR 400 crores for FY27 is a target, but final figures will depend on market conditions. - PAT grew 70% YoY in Q1 FY26 due to disciplined cost control and debt reduction, indicating improved operating leverage. - Long-term demand for C-PVC expected to grow to around 3 lakh tons in 2-3 years from current 2.5 lakh tons with capacity expansion by key players. - Company aims to maintain balance sheet discipline with net debt-to-EBITDA below 0.5x by FY26 end, supporting sustainable growth.

- The transcript does not explicitly mention the current or expected order book or pending orders by specific numbers. - It is stated that sales of Synthetic Rutile were lower in Q1 compared to the previous quarter due to the skew in the order book from Q2 onwards, indicating some pending orders or backlog for Synthetic Rutile. - Management highlighted their capacity expansions, especially in C-PVC, which is expected to drive incremental sales moving forward. - They continue to receive orders for SIOP from existing buyers with no change in prices despite U.S. tariffs. - Demand dynamics remain robust but impacted by pricing volatility and inventory levels at dealers. - Overall, the company expects growth aided by capacity expansions and sustained demand but did not provide precise current or expected order book figures in this call.