DDev PlastiksQ1 FY27
DDev Plastiks Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹276P/E: 13.5Market Cap: ₹2.9K CrSector: Chemicals & Petrochemicals
Management growth scorecard
Revenue
Category 3
Margin
Category 3
Fundraise
Yes
Order
N/A
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 3- →Target volume growth of approximately 15% in FY27, aiming to grow faster than the cable customer segment's 12-13% growth rate by gaining market share domestically and in exports.
- →FY27 revenue growth guidance is conservative at around 13%, based largely on volume growth, with no assumed price increases.
- →New capacity at Bhiwadi expected to ramp up gradually, targeting ~50% average utilization in FY27, increasing volumes especially in the second half.
- →Focus on better product and geographical mix to improve margins, with per ton realization improving by about INR200 each quarter recently.
- →Expects utilization levels around 70% by year-end with a tonnage run rate of about 231,000 tons for the year.
- →BESS project capacity starts with 1 GWh, capex of INR200 crore, aiming to generate INR900 crore turnover at full capacity around mid-FY29.
- →Export volumes expected to grow with shifting capacities; cautious about short-term market volatility impacting growth.
Margin guidance
Category 3- →Ddev Plastiks projects a volume growth of approximately 15% in FY27, driven by ramp-up of new capacity and market share gains.
- →EBITDA per ton is expected to remain in the range of INR15 to INR17 (excluding volatility premiums), targeting a sustainable EBITDA margin of 10-12%.
- →The company aims to improve product and geographic mix, contributing to better margin profiles quarterly by INR200 per ton.
- →Capacity utilization for FY27 expected around 50-70%, with new units (e.g., Bhiwadi) gradually ramping up.
- →FY27 revenue growth guided conservatively at 13%, considering stable prices averaging last fiscal year levels.
- →BESS business expected to contribute EBITDA margins of 6-8% initially, with potential to scale up margins to ~13% over time through EPC and system integration.
- →Uncertainties such as raw material prices and geopolitical factors may impact near-term profitability visibility, but long-term growth and margin improvement are targeted.
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Fundraise plans
Yes- →Currently, the company is funding the first phase of its BESS business (INR 200 crore capex) entirely from internal accruals.
- →For the initial phase, management does not expect significant debt increase; internal accruals will be primarily used.
- →However, for future phases or scaling up, external funding needs may arise but specifics are yet to be determined.
- →The management is open to exploring new opportunities, including joint ventures or investments for backward integration, implying possible future funding activities.
- →There is no explicit mention of planned equity fundraising at this stage.
- →Overall, near-term focus is on utilizing internal resources with flexibility to consider external funding if warranted by opportunities.
Order book
- →The company's order book is generally spot-based, with orders not extending beyond 10 to 15 days, possibly up to 20 days.
- →As of the call, visibility on order books is limited; they can only comment reliably up to August 2026.
- →Export and domestic market uncertainties, including geopolitical issues like the situation with Iran, add to this limited visibility.
- →Despite this, July 2026 was a comparatively good month, and August 2026 appears stable so far.
- →New capacities are just ramping up, and while Q1 volume growth was low (~1%), a 15% volume growth target for FY27 is maintained.
- →The company expects to ramp up new plant utilization in the second half, aiding order execution.
- →Retendering and delayed projects due to pricing issues might lead to future opportunities.
Capex plans
Yes- →The company has committed capex of INR150-175 crores for the year, including new capacities for HFFR and medium voltage cables in the East (near Vapi) and investments in BESS business.
- →The new site at Vapi aims to consolidate products from multiple plants and expand space for capacity addition.
- →Bhiwadi facility with 48,000 tons capacity was recently added; expected to ramp up utilization progressively, targeting INR500 crore incremental revenue.
- →For the BESS (Battery Energy Storage System) business, an initial capex of around INR200 crores is planned for a 1 gigawatt hour facility, expected operational by mid-FY29; funded primarily through internal accruals with potential additional working capital debt of INR100-150 crores.
- →The company is open to backward integration, joint ventures, and new investment opportunities as and when they arise.
- →Expansion into Eastern India with warehouse and manufacturing capacity is underway following a strategic shift.
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